Alright guys, I'm need a little advice on what I can do about a title problem on a bike i bought a few months back. I bought a wrecked 06 cbr 600rr for less than 1k. the bike only has 7k miles. I've never been one to jump on anything and always check things out closely before buying. I don't know the previous owner but a buddy of mine that I've known since high school actually was the one who wrecked the bike and was buying it from the original owner. I had talked with him and he said he would sell the bike for cheap just to pay off what was owed on it. Even knowing the guy for as long as I have I still had the vin# checked, everything came out great. nothing fishy, not stolen, completely clear title. I picked up the bike and paid the original owner directly w/ a check (my friend recieved none of the funds) and was told the bike would be paid off in a few days and I should recieve the title shortly after. I made sure to get a bill of sale and something else ( i would have to look ) but my problem is that it's been 3 months now. still no title and I just found out that there is still 3 grand owed on the bike. What can I do or am I screwed royaly?? I have finished the bike and want to sell it for a decent profit but can't without that title??

 

Depends on the state. I think you are screwed. Possible fixes I know of all center around there being no leins on the bike. It is a '06 so just bill of sale won't work. Surety bond shouldn't work either. The thing is when they run the vin in michigan they can tell you if the bike has a lien on it. Where are you from?

 

I'm in Mississippi, I was going to see about bonding the title but i'm not sure if that will work. I checked on the lien and honda motor credit still has a lien on it.

 

Another thing in MI is the "abandoned vehicle" clause. Not sure of all the ins and outs but basically if a vehicle is sitting for 30 or 90 days (again unsure of all the technicallities) You can apply for an abandoned vehicle title, it has to go to court and the judge has the final say so. I know this cause I sold a car to a buddy of mine, then he sold it to a buddy of his that never transferred the title, then a few months later he got a letter in the mail from court stating that a local junkyard was trying to get the title so they could sell the car. He never went to court to contest it, and the junkyard got the title. I would suggest finding a clean titled frame on ebay and building the bike on that frame, I know its skervy, but it ain't like your trying to sell a stoley.

 

Yep, you're screwed, especially if he isn't paying the payments. The creditor will come for the bike man. That sucks. You should probably go pay home boy a little visit. Just forgot to mention that any kind of deal you guys made won't amount to anything, Honda was and is still now the owner of that bike despite the fact that he under the tabledly sold you it. You need to get him to pay off the loan, so Honda finance can release the lien on it and he can transfer the title to you. Hope it works out for you.

 

I'm making a visit this weekend with a tire iron. I've told him he needs to get the payoff amount financed through a bank and pay off Honda but we'll see how much he's done tomorrow, If not...anyone want a cheap stunt/track bike with a freshly done custom paint and chrome wheels??

 

If the title truly was clear (i.e. no lien holder listed on it) then it is your bike free and clear. It doesn't matter if he went to household finance and borrowed money to buy it, if they didn't get themselves on the title, then you are a "bona fide purchaser for value" and the bike is yours free of the lien because the lien holder didn't protect himself (but this is extremely rare). You had to have legal notice/record notice of the lien to be responsible for it. It is up to the lien holder to protect himself by getting the lien recorded on that title.

However, if the title shows the lien holder and you bought it without looking at the title or going down to the tax assessors looking up the title (if it was lost) then it is your problem, because the lien holder did everything he had to do to let you know about the lien, i.e. he made it a public record that could be found by a title search on the vehicle.

Since you seemed to know about the Honda lien, then the way you should have protected yourself was to make the check out to Honda and the seller. That way the seller would have to go to Honda and have them sign the check to cash it. Honda would have had him sign the check and give it to them and they would have given him any balance remaining. Then they could cash the check and if they endorsed it, you would have proof that they were paid, so they would know they had to release the lien. Sorry bud.

 

Small claims court to get your money back. Possibly mention involving the police to the PO. If there's a lien, the bike wasn't his to sell. And it's not yours even though you paid for it.

Honda can and will declare the bike stolen when they go to him looking for either their bike or their money and he says he doesn't have it anymore

 

Nice!! Where are you from, we'll watch the news headlines for a tire iron beating!

 

The owner is the guys name who is on the title as owner. A lienholder isn't the owner, though they have rights by contract and by law which they usually know how to use to protect themselves. The leinholder probably has a "due on sale" clause in the loan which makes the lein come due as soon as it is sold. The state usually protects lein holders by requiring their permission to transfer title. The owner can sell it, but it is usually a breach of the loan agreement and there are consquences if the lien is filed and made a public record.