How can you hold the loans as unsecured loans and hold the title to the car? We have been lending for many years and in order to be a lienholder (thus have the ability to hold the title) you will need to have a signed security agreement. However, as you know once you are the lienholder you do not need to hold the actual title.
We have an agreement with the bank that they are first lienholder and at the time of the closing we have our security agreement signed also and the bank puts us on as second lienholder. Thus, perfecting our lien at the same time. By becoming the second lienholder - the bank is still able to hold their position and keep with standard lending practices and in the event of default we are already listed as second lienholder making the process simpler when we buy back the loan. If you are able to get a signed security agreement so that you can be first lienholder, the advantage would be ease of repossession in the event of default. However, by the bank being the first lienholder, they are able to maintain and keep the paperwork thus eliminating some of your paperwork. This would be the easiest way for you given the fact that the majority of the loans will not default. ----- Original Message ----- From: "Christine Rettenmaier" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Thursday, April 03, 2003 2:40 PM Subject: Re: [WTW] Title Encumbrance > Hi Anita, > I'm wondering what the reason is for the delays. I would avoid being > lienholder if possible. Is there a way to solve the delay problem? We keep > the bank as lienholder because here you have to have a dealer license to > order repossession or take cars to auction. > Chris Rettenmaier----- Original Message ----- > From: "Anita Corriveau" <[EMAIL PROTECTED]> > To: "Loan Committee Discussion Group" <[EMAIL PROTECTED]> > Sent: Tuesday, April 01, 2003 12:19 PM > Subject: [WTW] Title Encumbrance > > > > Hi All, > > I am having extensive delays in closing secured loans (used car loans) > with my servicing bank. It was recommended that I submit them as unsecured > loans and hold the titles myself (Center for Family Services). > > What is the liability to the agency if we hold the titles (CFS as First > Lien Holder)? What are the advantages/disadvantages? > > Thanks in advance for your input. > > Anita - Camden, NJ > > Anita Corriveau > > WAYS to WORK Family Loan Program > > Center for Family Services > > 584 Benson Street > > Camden, NJ 08103 > > 856-964-1990 ext. 295 > > 856-964-0242 fax > > [EMAIL PROTECTED] > > >
