Purchased a quad with a lien still on it, now what?

[BigRy]

Pretty much self explanatory, bought a quad ran the vin with the local PD and it comes back as good and not stolen Ran a check with dmv and it comes back with a lien from 2008.  Now what? I wanted to get a title and take it to Croom but I am at a standstillwith ttitle. Can anyone give some guidance? By the way I'm new here,  great resource here. I bought a 2008 arctic cat H1 650. Of course the previous owner beat it to hell and it needs new front axles and Ineed to dump the hmf pipe in llieu of the new mbrp silencer kit I just got.  Anyway,  thanks for whatever help  or guidance that will be offered.

[patches206]

I am not sure but would have to think the lien holder wants there money or quad.  The lien holder does have the right of ownership and would think they can repo it.  Then again it may be a DMV mistake and it was paid for and they never removed the lien  in the computer.  I hope its the mistake in the computer and hope to see you on the trails in the future.

[AintSkeered]

Original owner can sell the vehicle, even with a lien on it, as long as the loan against it is paid off immediately. If it is not, then he is liable for the loan/lien, and for any costs incurred by the purchaser, including a lawyer and expenses, and if he certified it lien free (even if it was a bank oversight) then it is considered fraud. Original owner can be arrested. The original owner is the one in trouble and will be the one covering all the expenses. He should immediately transfer the outstanding balance of the lien to another form of loan.

[BigRy]

I don't even know if I am reading it right. It just says first lien holder on the search. It could be very well paid off. I heard I can do a mechanics lien on it. But not sure if I wanna deal with the legality of it. I appreciate it very much guys. If i don't do anything I think I will be better off to leave it as is with my bill of sale and not worry a out riding in state parks. Thanks guys.
Ryan

[1Scorpion]

 Welcome to the site. I hope you get your title corrected.

[AintSkeered]

Did the former owner sign his title, as seller, and give it to you? Or, did he give you his Certificate of Origin?  Do you get a bill of sale? If only the latter, you will not be able to legally get a title. You're under no obligation to settle with the lien holder. BTW, if you operate that quad on private property without the landowner's consent or are involved in an accident (regardless of fault) with injuries, the police can impound your quad if you can't prove ownership. A bill of sale is insufficient proof because anyone can make one. Most folks don't know about these risks and get away without it ever happening to them. But, if you crash into someone with insurance, their insurance company may or may not require a police report. Their insurance company may want to recover damages from you. If you hurt someone, you'd have to hope they don't call the cops. If you let others operate your atv and get hurt...........

[Busta Nutt]

Have you tried talking to the individual that you bought it from?

[bigAl300ex]

Listen to AintSkeerd.  That's good info to anyone in the market, including myself, for a used quad.  Many people out there (especially on Craigs) selling ATVs with only Bill of Sales.  Sometimes they're third owners.  If you're going to take a chance on the purchase, know the history of the bike.  Like others have said, many riding areas require a current registration to operate on the property.  Without a free title, you can't register the bike.  Personally, if there's no title with the sale, then I'm not interested.  I don't care how "cheap" of price.  Just my two cents.

[BigRy]

I just have the bill of sale. It looks like there is still a lien on it. I contacted the lien holder and said the account has been charged off. But of course they still wont release the title. But they said I have no obligation to pay the lien nor return the property. It seems like they were letting on to something by stating that could not release the title, even if the previous owner paid it in full. Kind of odd, but nevertheless, this quad will only be ridden by me and I guess not out at Croom, unfortunately.

[AintSkeered]

Charge-off merely means that the lienholder wrote the debt off as a loss for tax purposes. The loan was not paid off. The reason they can't release the lien is because they sold the debt to a debt collector. But, the debt belongs to the loser who sold the vehicle to you. He's a thief!

[BigRy]

Yeah from what it sounds like from the guy I got it from. I think I am at least the 3rd owner. Possibly more. Kinda scumbagish to sell a vehicle while still holding a loan out on it. I guess I was raised with better morals and to pay my debt. Thanks guys.

[trx#9]

Always get a title when purchasing any motorized vehicle or don't buy it.