2007-07-09 15:53:53 · 6 answers · asked by Keep on Truckin' 4 in Cars & Transportation ➔ Insurance & Registration
How is it different from a loan?
2007-07-09 15:58:21 · update #1
A lien means that another entity (person/company) has a security interest in a tangible item (car/house), and you can't sell, trade or otherwise dispose of the item until the lien is satisfied. What you're most likely thinking of is a car that is financed through a bank, that bank has a lien against the car until you have paid the loan in full. Once paid, the lien is released, and you are free to do what you want with the car. There are many different kinds of liens, this is just one example.
2007-07-09 17:05:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It means the car was used as security against a loan, usually a car loan, but could also be the result of another debt. If the car has a lien, it means the title is not clear and it cannot be sold free and clear. You could buy the car, even register it, but the lienholder would have the right to forclose the loan and repossess it, regardless of your interest. If the lien has been recorded on the title, then the insurance company will insist on paying the lienholder in case of a claim, and will copy them on the insurance info. Bottom line, if there is a lien, the seller has nothing to sell you.
2007-07-09 18:09:21 · answer #2 · answered by squeezie_1999 7 · 1⤊ 0⤋
It means u can not sell the car until the lien is removed
2007-07-09 16:03:47 · answer #3 · answered by MRGQ 2 · 1⤊ 0⤋
It means it kinda has a tilt to it.
....
Yes, I know, that was so lame that it was hardly funny. I'm such a comedian.
Anyway, yeah. Having a lien on the vehicle means that title is held up until money owed is paid in full. Otherwise known as 'financed'.
2007-07-09 16:29:35 · answer #4 · answered by Miss Meli 3 · 0⤊ 0⤋
It means someone else has a financial interest in the vehicle and they are the owner of the car until you have satisified that interest, or debt, to them.
2007-07-09 15:58:18 · answer #5 · answered by bundysmom 6 · 2⤊ 0⤋
money was borrowed on the car and you cannot sell it until it is paid.
2007-07-09 15:57:35 · answer #6 · answered by slim 2 · 1⤊ 0⤋