Strange missing title scenario - suggestions?

Birdie2000

Club Member
So my buddy is in a strange situation. He acquired a vehicle from a friend that had issues and didn't run. They discovered that despite the vehicle being paid off for several years, the lien was never released on the title by the bank, so in theory the title couldn't be transferred yet. The problem is that the bank no longer exists, it was either bought or closed. They told him they had submitted something to the state to address this, so he took possession of the vehicle and started repairing it assuming the title was coming in a couple weeks and they'd transfer then. Several months later, vehicle runs and is roadworthy, but friend/"previous" owner first said they were waiting on the state, and now has fallen off the face of the earth with no sign of the title.

The only path forward he's found so far is to file a TR-205 with the state, but the issue is that it's only for vehicles valued $2500 or less. This particular vehicle is valued much more than that, however when he "bought" it, it wasn't running and was in fact worth under $2500. The state's requirement is that he show a valuation from a major website (KBB, NADA, etc.) showing $2500 or less, or have an appraisal done by a licensed appraiser. Appraisal would have been the way to go when it was a mess, but I doubt anyone would sign off on that now. With the valuation websites there is no condition/options combo that puts him below the threshold, aside from adding about 30k miles to it which I imagine would cause issues trying to sell it (or worse).

Are there any other ways for my buddy to get a title for this thing?
 
Last edited:
Check with a licensed car dealer with maybe willing
to process it for a fee?

What year is said vehicle?

Might be easiest to simply try to process the TR-205 and state
"repairable condition" as to value.

I hope this works out for your friend.

Again, let this be a lesson to all about purchasing any vehicle
without clear title.
 
Check with a licensed car dealer with maybe willing
to process it for a fee?

What year is said vehicle?

Might be easiest to simply try to process the TR-205 and state
"repairable condition" as to value.

I hope this works out for your friend.

Again, let this be a lesson to all about purchasing any vehicle
without clear title.

Thank you, those are interesting ideas. It is a 2003.

Yeah, ordinarily he knows better but doing business with a friend it was easy to take them at their word.
 
Few years ago I sold a boat for my dad. He bought it in 1988 brand new and had a loan/ lein on it through at the time a local bank. That bank utlitmately being bought by Chase bank. I just went into a Chase branch and they were able to verify/ sign off on the title lien with no problem. They may have even provided a letter head sign off letter as well.

Are you able to google and find out who bought the original bank? That is all I ended up doing.
 
Write a fake letter? I have a lein on my 81 TTA from First Michigan Bank. I have the release letter, but it's not like it could be verified, so what is the difference if I have a fake or real release or not?

-Geoff
 
I recently acquired a title for a vehicle using a TR-205. I printed an generic vehicle appraisal form off the internet. I went to a small local dealership and explained the situation to him. He filled out the appraisal for for me. I asked him what I owe him he said no charge just refer family and friends to him if there in the market for a car. I still gave him a few bucks.
 
For some reason I believe after so many years the bank will not require a letter to clear a lien.

I think it used to be 10 years. But I bought a 15 year old car from the original owner last year the SOS said I had to obtain a lien release no matter how old the lien is.

This may help the original poster https://www.michigan.gov/sos/0,4670,7-127-5647_12539_48268-29818--,00.html


Or this https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/lien/index.html
 
Back
Top