Taking collateral - Posted by Paul Stryer

Posted by Dr. Craig Whisler CA NV on September 11, 2003 at 14:37:43:

You take them and their title to your state’s Motor Vehicle Department and have yourself listed as lienholder. Normally a new title will be issues and mailed to YOU, not them. This way they can’t apply for a duplicate title, claiming they lost their original and bypass you. You keep their title until the obligation it secures has been fulfilled, then you sign a release section on the title and hand it over to them.

If they are older vehicles and/or have loans on them, you are probably getting NOTHING of value. Take that into consideration. Even if they are nice vehicles check for loans, 'coz its so easy to do (loans should be listed on their title document as lienholders).

I would have them sign a paper giving you the right to enter on their premesis without further permission and repo the vehicles if they are in default of their mobile homeloan or any other agreement. Doesn’t do much good unless you have copies of their keys. Ask for keys and CHECK THEM to be sure they work in the ignitions and doors. If they balk at giving you keys be a little more wary but don’t give up yet, it is understandable in a way. Just ask for other co-cigners (check co-signers credit and job etc.) Have co-sisgners fill out an information sheet and have a clause in it allowing you to check their credit etc., the s ame as I presume you did for your buyers (both of them) or try to get a TD on someone else’s property, such as their parents, boss, brother/sister or best friend. If their parents or best friend don’t trust them then I don’t either.

Check their photo I.D.s to be sure they aren’t using the names of someone else with better credit and references. It is happening more and more lately.

Regards, doc

Taking collateral - Posted by Paul Stryer

Posted by Paul Stryer on September 11, 2003 at 13:41:05:

I have a buyer for my mobile home that I am not to sure about and they are willing to put both of their cars as collateral as well as put in a very big down payment.

How do I take a car as collateral. Do I just write that into my contract some how or do I get the title and then get put in as the lean holder. Or do I do both or something completly different

Thanks
Paul