What are the risks and benefits of purchasing a vehicle through a lien sale?
In this article we are going to identify all the potential Risks and Benefits of buying a pre-owned vehicle without a title through a process of a lien sale. What is a Lien Sale? To better understand the lien sale process, it is important that we clearly identify what occurs when a lien is placed on a vehicle. There are multiple types of liens. A lien is often placed on the vehicle by banks and lenders when an outstanding loan is pending on the vehicle. In cases of mechanic’s liens, it is usually related to an unpaid debt that is uncured through the process of vehicle repair, storage or towing. When the debt goes unpaid the business may place a lien on such vehicle to recover the debt. The lien holder retains the legal claim to the vehicles ownership until the loan is fully paid off or the vehicle is sold. In some cases, the lien holder might not have the title because it is held by the vehicle owner creating a bit of a dilemma for the new buyer....