catlady
enthusiast
Posts: 659
Loc: allen tx
Reg: 03-22-02
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06-28-13 09:46 AM - Post#161884
I just need some information. A friend of mine got there car towed and it's in storage with fees mounting daily. They were told at the end of 30 days the car would be sold. How do they sell a car that has a lien on the title???
A dog looks at you and says "You take care of me. You must be a god".
A cat looks at you and says "You give me food and shelter. I must be a god". |
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MCDUFF
enthusiast
Posts: 261
Reg: 08-21-03
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06-28-13 12:31 PM - Post#161885
In response to catlady
It is really quite simple. It is called a mechanics lien through which a court has given your ownership in the car to the towing company. You can release that lien by paying the costs. Otherwise at the end of a specific period the car is sold at auction to recoup all costs. The registered owner of the car still has a responsibility for the unpaid amounts due on the car.
This is an ugly situation. Suppose the car is sold for $1 at auction. That means you still owe the original amount for the car loan plus the shortfall in towing and storage, plus all costs for all entities. The car is going to sell for far less than its value and while $1 may sound ridiculous, it is not unheard of. One could easily end up owing many times the original loan amount.
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Michael
enthusiast
Posts: 2041
Loc: Allen
Reg: 05-20-02
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06-28-13 04:44 PM - Post#161887
In response to MCDUFF
Wow! Towing companies are like organized crime....
| I don't suffer from insanity. I enjoy every minute of it! |
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allen
enthusiast
Posts: 1940
Reg: 12-02-05
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06-28-13 04:46 PM - Post#161888
In response to Michael
Um, why?
| We sittin' here, I'm supposed to be a franchise player....and we in here talkin' 'bout PRACTICE? |
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gma3
enthusiast
Posts: 641
Reg: 10-17-06
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06-29-13 01:07 PM - Post#161894
In response to Michael
I agree. We had a car towed from a restaurant lot in Dallas several years ago and had to go to a rag tag lot in west Dallas to retrieve it. At first they said they didn't have it, then said it was at the back of the lot. They changed their tune real fast when my hubby said he was calling the police. Our car appeared at the front of the lot right away....
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catlady
enthusiast
Posts: 659
Loc: allen tx
Reg: 03-22-02
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06-30-13 10:03 PM - Post#161943
In response to gma3
thanks for all the information. This is happening to a co worker and they just think it will "go away'. We've tried to let them know that this is serious. They loaned an old car to someone and they got the tow ticket. They can't find the original title and when they went to get a copy of it, they DMV said there is still a lien on it. According to them they paid off the loan many many years ago. I told them it's their responsibility to prove the lien is paid. This is going to get ugly before it get's better.
A dog looks at you and says "You take care of me. You must be a god".
A cat looks at you and says "You give me food and shelter. I must be a god". |
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