I was looking at a car and it was a "lien". What does this mean? Will it cost me anything? Is there problems with it?
2006-07-27 07:10:59 · 18 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
yes it will cost you ...in other words if you pay the guy what he wants for the car...you will also have to pay off whatever the amount of the lien is before u can put the title in ur name...u dont want anything with a lien on it....so the guy wants 5000$ for the car...you give him the money...you go to transfer title ...and find out the bank owns the car until u give them 7000$ more or whatever is owed on it lol...
2006-07-27 07:17:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
What that means is that the person who bought the car still owes money to the finance company. The finance company holds a lien against the title, because they technically still own the car until it is paid off.
Having a lien does not indicate mechanical problems. I am unsure of the process of purchasing a car that has a lien on the title. I always thought you had to have that removed in order to transfer the title. For instance, I am trying to sell my car which is paid off, but since the DMV still shows the finance company as having a lien, I have to get the paperwork from the finance company saying I paid off the loan to the DMV and pay a $15 fee before I can transfer the title of the car.
I hope this information helps!
2006-07-27 14:17:03 · answer #2 · answered by someone,somewhere 3 · 0⤊ 0⤋
In U.S. law, lien is the broadest term for any sort of charge against an item of property that secures the payment of a debt or performance of some other obligation.
Liens can be consensual or non-consensual. Consensual liens are imposed by a contract between the creditor and the debtor. These liens include for instance mortgages and car loans.
So it means that the current owner of the car owes somebody money and it will be kept on the car, so to speak. I think it will be included in the price. So you will have to pay this debt/lien.
I'll say: Stay away.
2006-07-27 14:15:42 · answer #3 · answered by Emmi 3 · 0⤊ 0⤋
When you purchase a car and the bank finances it they are the lien holder of that car, so in essence there is money owed to the lien holder of that particular automobile. If you were to purchase the car (and the price of the car would include the lien) and financed it through a lending institution they would pay off that lien holder and in turn become the lien holder of the car you have purchased.
2006-07-27 14:17:59 · answer #4 · answered by mzmscheeveeuhs 3 · 0⤊ 0⤋
A legal right or interest that a creditor has in another's property, lasting usually until a debt or duty that it secures is satisfied. Typically, the creditor does not take possesion of the property on which the lien has been obtained.
DO Not buy something that has a lien on it, the prior owner still owes money on it.
2006-07-27 14:18:46 · answer #5 · answered by ? 6 · 0⤊ 0⤋
A car cannot BE a lien. There may be a lien against it. That means someone owes money on it, and that has to be paid out of the proceeds of any sale.
2006-07-27 14:13:26 · answer #6 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 0⤋
A lien is a legal claim or a "hold" on some type of property, whether personal or real property, making it collateral against monies or services owed to another person or entity. A lien usually exists in situations like second mortgages, loans against a vehicle title, or money loaned against any other substantial item owned by a borrower. It may keep the borrower from selling the property, or at least keep him or her from transferring title to the property.
2006-07-27 14:12:59 · answer #7 · answered by ~*Just me*~ 6 · 0⤊ 0⤋
"Just Me" is right.
It might not cost you anything right now, but it can cause you to have bad credit which can cost you a lot in the future. Trust me. It causes you to have higher interest rates on credit cards and loans.
If you can avoid having the lien or if it is too late, take care of it asap, you will be better off in the long term.
2006-07-27 14:15:37 · answer #8 · answered by Jennifer J 3 · 0⤊ 0⤋
It is a legal hold against something from in this case, i suppose, a car mechanic. It means he wasnt' payed for some work done on the vehicle, and any money you pay the seller, goes to him first to get payed.
If the seller doesn't give him the money, then legally, as the lien is on the vehicle...as the owner, you would then be liable for the debt owed to the mechanic.
2006-07-27 14:14:27 · answer #9 · answered by Anonymous · 0⤊ 0⤋
A lien is an agreement you must sign before getting a loan or getting repairs done That states that if you don't pay the money you owe they can come get the property (car) and auction so that they will get their money back
2006-07-27 14:16:35 · answer #10 · answered by miracle man 2 · 0⤊ 0⤋