Title search for Leins, IRS etc..... | FerrariChat
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Title search for Leins, IRS etc.....

Discussion in '308/328' started by Maranelloborn, Jan 22, 2010.

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  1. Maranelloborn

    Maranelloborn Karting

    Nov 16, 2009
    227
    New York
    Full Name:
    Remund
    #1 Maranelloborn, Jan 22, 2010
    Last edited: Jan 22, 2010
    Can anyone recommend a company or method of conducting a title search on a vehicle other then CarFax. CarFax only tells me there is a lien, not if there are any additional lien holders.

    I'm looking at a car for sale next week in which the bank is holding the title; the owner is not able to pay off the loan to clear the title. If I payoff the loan at the bank I need to wait for the title to be sent. My fear is that there could be additional liens on the car. A quick background check of the current owner showed past Federal IRS Tax liens, so I'm seeing red flags... I would really appreciate past experiences or advice.

    Oh yeah there is even more to the story......
     
  2. GatorFL

    GatorFL Moderator
    Moderator Owner

    Nov 18, 2005
    16,967
    Wellington, FL
    Full Name:
    Duane
    #2 GatorFL, Jan 22, 2010
    You might get better responses in your local forum, B & I or even the General forum.
     
  3. Maranelloborn

    Maranelloborn Karting

    Nov 16, 2009
    227
    New York
    Full Name:
    Remund
    #3 Maranelloborn, Jan 22, 2010
    Last edited: Jan 22, 2010
    You may be right about moving the post. Although it is 308 specific, I really need some feed back on how other members have conducted transactions when there was a lien on the Title.
     
  4. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    18,071
    Savannah
    #4 thecarreaper, Jan 22, 2010
    you should be able to go through a Title company. i have used the same one the local car dealers here use in the past. here they charge a flat $50.00 fee, and they go to the DMV headquarters ( in Atlanta for me, 4 hours away) once a week , and they walk the Titles through by hand.

    they also can do research and advise you of any issues with the car or title before they become an issues to you personally. very expensive cars/ aircraft may need to have Title Bonding done to ensure everything is clean and clear as far as transfers go.

    they will work directly with the banks or lein holders and can tell you if its going to be a clean transaction or not.
     
  5. gsfent

    gsfent Formula 3

    Nov 16, 2009
    1,101
    PB County, Florida
    Full Name:
    Jerry
    #5 gsfent, Jan 22, 2010
    First, the IRS lien will not be on the title. Those are for liens when the money lent is used to purchase the property (money purchase lien).

    For third party liens, every state does it differently.

    GENERALLY SPEAKING, federal law requires the lien is filed in the public records to put purchasers on notice. Again, GENERALLY SPEAKING, for real property, in the county the property is located. For tangible personal property (cars), usually the capital (where you file UUC-1 liens for example); most states have a central repository for those types of records so you don't have to look in multiple places.

    You can always contact the IRS with the name (or better yet, the social security number) of the current owner and find out if they assert any liens and get an estoppel letter from them if they say they do not. Alternatively, if they do, you can pay the money to them and they will release their lien as to the car and give the seller credit for the monies paid over.

    Regards,
    Jerry
     
  6. Maranelloborn

    Maranelloborn Karting

    Nov 16, 2009
    227
    New York
    Full Name:
    Remund
    #6 Maranelloborn, Jan 22, 2010
    Last edited: Jan 22, 2010
    Thanks, guys
    There really is a wide variety of talent on the board!

    Gsfent - How would I go about contacting the IRS to check this information, and what kind of turnaround time would I be looking at?
    I'm not going to be able get the individuals SS# since he wouldn't even give out the last for digits to allow me to call the automated touch tone service with the lender. I even recommended a three way call so he could key in the 4 digits.

    My plan is to draft up a bill of sale have it notarized at the bank, payoff the balance of the loan and give the seller the difference. I'll take the car load it on the transport and await the clear title by mail, since the title is being held out of state. I'm not even sure if the bank will deliver the title to me, they may need to send it to seller to sign 1st then mail to me. I just fear that I'll be waiting for the title only to find that the lien is not removed or additional liens are on the car, at which point I'm left holding the bag for the difference. Wow not having a clear physical title can make the process difficult to say the least.
     
  7. D.Mauro

    D.Mauro Formula 3

    Jun 18, 2006
    1,266
    Cumming/ Hlwd Fl
    Full Name:
    Dominick
    #7 D.Mauro, Jan 22, 2010
    One way to do it is, you send the money to the bank who has the title, once the seller signs the title over to you the bank releases the balance of the funds to the the seller and sends you the title to you by express mail with the title stamp that the lien is paid in full. i would not paid the seller the balance. I have done this many times and never had a problem
     
  8. gsfent

    gsfent Formula 3

    Nov 16, 2009
    1,101
    PB County, Florida
    Full Name:
    Jerry
    #8 gsfent, Jan 22, 2010
    Last edited: Jan 22, 2010
    Two different things here.

    First, not sure why you suspect an IRS lein. If they have a lien, they typically file it in the Federal system, and any real estate title company can run a lien search. I think (don't remember, haven't looked at one recently) it includes the SS number of the taxpayer. It may only have the last 4. But if you contact the IRS with name and address on the filed lien and have the 4 SS#'s, they should be able to look it up.

    I don't know where the seller lives, but you can generally get to the IRS through their general toll free number and then ask to talk to someone who handles liens in the state of the seller. (IRS website is www.irs.gov). There may be more than one office, so the city would be very helpful.

    Again, most liens by the IRS are filed in the public records, so if you don't find any in the state/city/county where the seller lives, I wouldn't be too worried.

    As to dealing with the bank, have the seller send a letter to the bank releasing the title to you upon payment of the lien. Get an estoppel letter from the bank for the payoff (good through a certain date, and they may give you the per diem or daily interest rate after that). I would also have the bank send me a copy of the title ahead of time, so I could confirm ownership and the bank's lien (have the seller add that request to the letter).

    Once the bank gets the $$ and it clears, they will (get from storage if not local and) send you the title with the lien released. Make sure you have a separate document signed by the seller conveying title. Usually, you can get that from your local DMV and they are typically good about giving you all the information necessary to do a title transfer (for example, some states require out of state car to have odometer verification before it is allowed to be retitled).

    One other way to handle the bank is "borrow" money from your bank, let the bank's handle the title to protect their lien on the vehicle , and then pay off your bank. Some miscellaneous costs, but it might buy you some peace of mind.

    BTW, given that the seller seems to be very secretive, I would be hesitant to deal with him, wondering what he is not telling about the car..........

    Regards,
    Jerry
     

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