3 Ways to Deal with Cases with Lien Holder States

Many states require a lien holder to obtain a title in their name following the actual repossession which is a difficult process.

Collateral Manager Considerations:

1. Some states require you to submit the original title as a part of the vehicle title process
2. Those same states will generally allow a lien holder to request duplicate vehicle titles without the debtor’s consent.
3. In some lien holder states, you’re not required to relinquish the title but must have some proof of lien holder filing, whether it’s a:

• Notice of the lien filing receipt
• Copy of the registration reflecting the lien
• Some state print out of verification of the lien.

States vary on “where to obtain a repo title” – either the debtor’s state of residence or lien holder’s state of business. If it is a state that offers repossession titles, you can always obtain a repo title in the debtor’s state of residence.