Liens on Sleds - Snowmobile Forum: Your #1 Snowmobile Forum

mxzboy · 09-06-2006, 09:49 AM

Alright,

Quick question...the MXZ I'm looking at, originally had a lien on the sled, then it was bought by the guy I'm buying it from. The lien the original person had has never been paid off, and if I buy this sled am I liable for it? Am I going to end up losing my sled and be out of pocket the money I spent on the sled?

Any help on this would be great!

Thanks!

BC_Dan · 09-06-2006, 10:51 AM

The lien is against the property, if it is not paid back, the lienholder can come after the property.. I would avoid this until you have a clear title...

brown435 · 09-06-2006, 10:57 AM

Good concise answer BC Dan. If/when you try to removethelien they will want money or the property. I take it the sled was never registered by the previous owner or the used another sleds registration?

mxzboy · 09-06-2006, 11:52 AM

The sled was registered into the name of the person who has it now. I am going to request a sellers package from the Ministry of Transportation, and see if there is a lien against it recorded there. If there is, this is a deal I"m going to walk on.

The only reason we know there is a lien on it right now, is because someone from a bank came looking for it. At least the current seller is being straightforward with me!!!

I'll keep you guys posted with what I find out! Thanks for your help! I'm new to this forum, and so far all the advice has been fantastic!!!

**smallengineguy** · 09-06-2006, 05:18 PM

Does the current seller owe the lein. or the owner before him?

mxzboy · 09-06-2006, 10:36 PM

THe owner before him holds the lien. THe current owner has no liens on the sled. Makes me wonder how he was able to register it.

PolarisINDY500 · 09-06-2006, 11:32 PM

wow, this is messed up.

imo, id steer clear of this sled. if the bank is allegedly looking at the sled, and you hear there is a potential lien against an owner/sled, your asking for trouble.

if the guy who owns it now purchased the sled in good faith from the guy who has the lien, and you too purchase the sled in good faith, then you assume responsibility for the transfer of the title (wether its clear or not).

SnowRida · 09-07-2006, 06:16 AM

Look for another sled and be done with it!

ponchonutty · 09-07-2006, 06:21 AM

I'd run not walk away from that sled. The only other thing is to find out which bank is suppose to have the lien. It could be a simple mistake because think about it, how can the next owner register it if it's in someone else's name? Also, how can the currant owner have insurance and such on it if technically he doesn't own it? It could be something simple like the original owner paying extra on the sled and it being paid off earilier than what it was suppose to.

**smallengineguy** · 09-07-2006, 06:43 AM

That's what I was thinking. How can this owner register it if it'd come up with a red flag as soon as he tried to do it?

mxzboy · 09-08-2006, 09:07 AM

Alright...

UPDATE on the situation!!! The guy who currently owns the sled had no problem registering it when he purchased it, and no liens appeared. He went to the ministry and got a used vehicle package, and no liens showed up on it.

Now...the only reason this came up was because I guess the sled is still listed on a bank computer somewhere as part of the original owners (not the guy I'm buying it from) list of assets, and then he defaulted on a loan and I guess the bank came trying to re-claim whatever property they could. When speaking to a lawyer, they called this 'fishing'. The company assigned to collect all the property actually showed up at the current owners house looking for it, even though they actually had no right, and it would be considered theft if they had taken it. THey were just trying to get whatever they could. Sounds a bit greasy doesn't it?

Now that we know there are no current liens on it, I think its back in the running as a consideration!!! BUT...before I do...lets just see if you guys have any comments on the current situation.

Thanks again for all of your help!!!

brown435 · 09-08-2006, 10:56 AM

If there are no liens on the title then I say go for it BUT if the government removed the lien without lienholder approval or the owner who had the lien removed without lienholder permission then I would be concerned.

Is there some one you can ask ( like the title issuer) if a lien ever appeared on title and who had it removed? Can you do a title trace?

If the lienholder released the lien then go for it. But it sounds like the bank still thinks they have a claim to the property. Why would they think they still have claim to the property? They forgot they released the lien or someone removed the lien without the banks knowledge.

mxzboy · 09-08-2006, 11:27 AM

I can get a trace of the past owners and any liens that were on the sled. Now...I think what happened was the following:

Original Owner purchased the sled, and had the dealership setup the financing. The financing went through a different bank than the one the original owner used. The original owner then listed the sled in his list of assets at his current bank. When he sold the sled, he didn't take the sled off his list of assets.

The sled was then sold to the current owner, Lien was removed. Then when the original owner defaulted on a different payment, the bank went around trying to collect everything he had in his list of assets, assuming the lien had been paid off on it. Could be a simple oversight on the original owners part.

Either way, I'm still going to consult my lawyer before I hand money over to anyone.

PolarisINDY500 · 09-08-2006, 01:49 PM

dude, imo this seems like to much hassle for a sled

SnowRida · 09-08-2006, 04:07 PM

During all this time and hassle, you could have found another sled by now.

ITriumph · 09-08-2006, 04:31 PM

I know one thing. I would keep driving down the road to the next sled that's 4sale. Lots of hassles, and hurdles to jump over just to buy a sled. Keep lookin