who has first claim on an automobile lien, the first lien and title holder or transmishion mechanic for repair

Question

I loaned a customer money to buy a carand retained title as First Lien Holder. He damaged the transmission and had it repaired. The cost of repair exceeded the value of the car so he abandoned the car to the transmission repair company. The company is selling the car at auction. Who has first claim on the money received at the sale, the repair company or the first lien holder?

Answer 1

Sorry to say, but I as another said,have had to do the same thing. We do get a duplicate title, from the DMV, not illegally. And the title does not have to be "signed" over to us by the owner or the 1st lien holder. A mechanic's lien comes first. What is a mechanic's lien?
When an auto repair shop does work on your car, they can hold your car as security if you do not pay them for the repair. Such a procedure is called a Mechanic's Lien. In order to file a mechanic's lien, you must follow the strict procedures set in the statutes of your particular state. The basic procedure involves:

1. Send Notice to owner of property.

2. File Mechanic's Lien with the Town Clerk where the property worked on is located.

3. If lien is not satisfied property can then be sold.

You need to check on your state's statutes, whether on limiitations of days to file for the lien. Where I live the vehicle can be sold for an amount up to but it cannot exceed the amount of the mechanic's bill. In other words you can't make a profit off the sale of the vehicle, but it can be sold for less than it is actually worth. One other thing to keep in mind, storage on the vehicle can almost always be counted as part of the mechanic's lien.

Answer 2

If you're actually listed as Lien holder on that title, then that Lien must be satisfied and you must issue a Lien-release so that the vehicle can be resold and titled. I'm assuming that the trannie was repaired, so the car is in running condition, and not being sold as salvage.
Be careful, sometimes a repair shop will get a duplicate title without a Lien holder on it. (sorry, I can't tell you how this is done).
What I suggest is that you confront this repair shop. If they give you a problem, then take them to court. Also, find out if your friend has already signed over the title.
If your friend is no longer paying you, it may be a good idea for you to repossess this car!! It's easier than you think. Your local DMV can walk you through it!!

Answer 3

the lien holder has first priority if they can find the person

if not they sell at auction as a lien sale.