NY state title, liens

[forgedin78]

Does anyone know if a lien stays on the title forever, or do they take it off when its paid off?

I recently bought an old fixer upper boat (87 glastron 19 footer) for 900 bucks. It needed a lot of work, and I figured I could work on it this winter. Guy had the title, in his name, I didn't look things over much more carefully than that. He signed the back of the title, I took it home. 2 weeks later, I realize Im gonna have to register the boat before the 30 days are up, and I look at the title and at the bottom it says "one lien recorded".

Now this title was transferred to him in 07.....Im sure that with the condition of the boat, he didnt get a loan to buy a 20 year old boat. So the lien must have been pre-existing right?

I have no experience with liens, I bought my vehicle outright, so I'm clueless. Did I get screwed? Is their a lien on the boat still? How do I find out? I was gonna go to DMV tomorrow and register it. What should I be prepared for?

this is a NYS title by the way

 

[CaptNCamille]

Re: NY state title, liens

The lien stays on the boat until released by the lienor. A release of lien would have to be filed with the DMV to have the lien removed.

 

[forgedin78]

Re: NY state title, liens

ok, so its possible that everything is ok, but noone ever filed for the release?

 

[forgedin78]

Re: NY state title, liens

Ok i have been reading every thread I can about liens and titles, and If I understand correctly, The bank would be holding the title if money was still owed on the boat, correct? So if The guy had the title in hand, it must have been payed off, am I correct in this thinking?

Maybe no one ever did the paperwork to have the lien removed from the physical title?

 

[bob johnson]

Re: NY state title, liens

Ok i have been reading every thread I can about liens and titles, and If I understand correctly, The bank would be holding the title if money was still owed on the boat, correct? So if The guy had the title in hand, it must have been payed off, am I correct in this thinking?

Maybe no one ever did the paperwork to have the lien removed from the physical title?

NOT correct....I live in ny and have had a few cars that had leins on them, but the title came to me...

I have also had vehicles were the lien did not get recorded for some reason( new cars) so the title came to me clear!!

mistakes happen in ny state for sure

you might need a lien release from the lien holder listed

you can contact them directly for that probably

I need to register a new boat i bought in march...but I lost the bill of sale..they wont accept a faxed version from the dealer..

got to be signed in INK.....I have to have the dealer write a new BOS

I doubt the lien was on the title prior to the guy who you bought it from, owning it.

the state made a new title with the new owner and left the old lien on ???? doubt it.

the lien was against the guy you bought the boat from...

it might be paid for it might not.

usually when the lien holder HOLDS the title.... they mail it in to the state when the lien is fulfilled.. and the state mails you a new title!! wala

but if the owner holds the title..

he needs to GO TO DMV and file for a new clean title

good luck

bob

 

[forgedin78]

Re: NY state title, liens

thanks for the reply Bob, My logic was, I can't believe anyone loaned someone money on a 20 year old boat in the condition it was in, but I guesss anything is possible.

 

[RickJ6956]

Re: NY state title, liens

I just went through this three weeks ago in NYS.

The owner holds the title in NYS, not the leinholder.

The leinholder's name and address is listed on the title. It will stay on any newly issued title until a release is received and processed by NYS. You can write to the leinholder to check status. Include a copy of the title in your correspondence.

A lein does not prevent the transfer of ownership. Techically, if there is a lein on which money is owed, the new owner assumes that responsibility.

You also don't need to remove the lein when you get the release. Just staple the release to the title and give it to the new owner when you sign it over.

If you owe money on the boat and your finance company has a lein, they will be Number Two in line for an insurance payoff or repo, so it's best to clear the first lein. Otherwise you could end up paying for a boat you no longer have! In that case, you pay NYS yet another $20 and mail the title and release along with your check. You'll get a new title without the lein listed in about six weeks.

As for the Bill of Sale, you don't need a signed document. A BOS only needs to list the former owner's name & address, new owner's name & address, the make, model, year, and hull number, the price paid, and the words "Paid In Full." NYS uses the BOS to determine sales tax. (The previous owner's signature on the title document is all they need.)

 

[Lion hunter]

Re: NY state title, liens

Does NY allow those payday loan scams that allow you to hawk a vehicle? That is how people get loans on 20 year old stuff. Hopefully the owner didn't borrow money on a payday loan and use boat as collateral.

 

[forgedin78]

Re: NY state title, liens

well I registered the boat today, and the woman at the window asked about the lien, and she seemed to think it was strange on a 22 year old boat too. She said the same thing, I need to get a release letter from the bank (which is chemical bank) and give that to the next owner with the title, and it will be taken off when the title is re issued.

I have had no luck searching the internet for the address listed next to chemical bank. I guess its time to go onto the phone. The address said GA, but when I go to chemical bank's website, they seem to be only in Michigan? is that right?

 

[akwalker]

Re: NY state title, liens

well I registered the boat today, and the woman at the window asked about the lien, and she seemed to think it was strange on a 22 year old boat too. She said the same thing, I need to get a release letter from the bank (which is chemical bank) and give that to the next owner with the title, and it will be taken off when the title is re issued.

I have had no luck searching the internet for the address listed next to chemical bank. I guess its time to go onto the phone. The address said GA, but when I go to chemical bank's website, they seem to be only in Michigan? is that right?

Heres the deal in NY,,,,,
I doubt very much that Chemical bank is going to issue YOU a lien release, since YOU are not the one who borrowed against the boat. You need to go back to the person you bought the boat from and ask for the lien release. If he doesn't have it, and the loan is indeed paid, then HE needs to get a copy from the bank.
The lien holder will ALWAYS appear on the title until either ownership changes or you go to DMV and PAY 50.00 for a duplicate title. YOU STILL need the lien release from the bank,,,,, thats the key.

 

[RickJ6956]

Re: NY state title, liens

An original title is $50. Removing a lein from an existing title is $20. That's why the person at the DMV suggested stapling the lein release to the title and holding both until the boat is sold.

All of the info, instructions and forms are available at http://www.nydmv.state.ny.us/

The forms can be filled out online and printed at home. Saves a whole lot of time standing in line.

 

[CaptNCamille]

Re: NY state title, liens

Chemical was taken over by Chase in the early 1990's. You may have better luck going to Chase.

Incidentally, you are not personally responsible for the underlying debt were there still one in existence. However, the lien stays with the boat until it is released by the lienholder.


In any event, I'll bet the lien was probably released years ago. IMO you probably will never hear from Chase since I doubt they would have any interest in a 22 year old boat that sold for 900.00.

The only issue you may have is if you fix it upand turn it into something that has substantial value and/or if you try to sell it. Then the purchaser will want that lien off. Additionally, if you insure it against loss or damage to the baot and the boat is damaged or destroyed, then the isurance company may insist that you get a release from the lienor before they pay you.

 

[forgedin78]

Re: NY state title, liens

That bank takeover makes a lot of sense to me. The lien was most likely from the original purchase in 87, which is NOT the guy I bought it from. He must have bought it the same way I did, with the lien on it, and just did nothing about it. I will look into CHASE bank a little. Im not sure if I want to make a lot of noise though, maybe they will want me to pay off the balance.

I am hoping that either it was paid off, but the owner neglected to file the lien release, or it is simply SOO old that they now longer care about it. In its condition, its not worth much, but if I fix it up, who knows, maybe they will make an issue of it.

 

[traveling man]

Re: NY state title, liens

I went to NYS DMV today to get a duplicate Title for a boat that I am selling. It cost $20.00 and it takes 3 minutes to fill out the form. As far as have the old lien holder on the lien i'll let you know in 7 business days. The bill of sale I use has a clause in it that the seller is responsible for all encumbrances, taxes, fees and liens on the title.