I need professional advice - friend's motorcycle not repo'd, what can I do?

[shakejunt]

A friend of mine went bankrupt like 6 years ago. He was injured and couldn't work and make payments on his new motorcycle at the time. He literally bought the motorcycle rode it for a month and then filed bankruptcy. The motorcycle has sat for 6 years untouched. He asked his lawyer what he should do since no one has come to repo it, nobody seems to be asking about it at all since he's gone bankrupt, his lawyer said the best he could probably do is sell it for parts. His credit is actually back up and good, he owns a boat now etc. I really love the bike and I don't want to see it stripped to pieces, I want to buy the motorcycle off of him, and he's going to practically give it away to me for free. But I don't know too much about repossessions or how to get a new title or register it. Should I take the amazing deal on this basically brand new motorcycle in storage? Or will I have too much trouble trying to register it?

your help is greatly appreciated, thanks!

[BobMango]

He needs to contact the lienholder and find out what they will take to release the lien. Without that you can't get the title so anything you pay will be for nothing. If they are willing to release the lien for a reasonable payment you might be in luck.

[frogger]

He needs to contact the lienholder and find out what they will take to release the lien. Without that you can't get the title so anything you pay will be for nothing. If they are willing to release the lien for a reasonable payment you might be in luck.

Bob is right on. You've got to have the title or it's not ever going to be yours.

[shakejunt]

I'm not sure he's going to want to do that. Since he's gone bankrupt, they've asked about his bike in the first year or two... but then they just "went away". Nobody has come knocking on the door or asking about it anymore. I think that's really weird. The bike just sits there and nobody is going to claim it. I feel as though if he asks about what it will take to clear it.. they will start to come after him again? I guess they look at it like.. well you can't register the bike or do anything with it... so your move. But what if he never does anything with it ever... it could just sit there forever haha. It's a GSXR 600 2005 with all these upgrades with less than a thousand miles, that thing is awesome! He said he'll sell it to me for like $1,500. I don't think he wants to stir back up the trouble by contacting the lienholder though, which is probably some collector agency and will just put fire under their ass.

anyone know what kind of % the lienholder may ask? maybe since it's 2005 (could be an 04) they'll think it's used and beat up... and will only ask a thousand dollars or so? think that's possible? or will they go for the full or half of the amount owed? maybe it could still work out

thanks again fellas appreciate all your generous knowledge

[shakejunt]

can.... or do... people buy / sell motorcycles without titles... or with liens on them?

Thanks again fellas!

[BobMango]

They do and it's usually referred to as fraud. The lien has to be satisfied one way or another - paid or a new loan. There's really no two ways about this. Your friend can probably register it, insure it and let you ride it, but the lien holder is not going to allow a title transfer without payment. They won't go away unless they get paid. That's what liens are for - to force borrowers to pay or return the collateral.

Really, what does your friend have to lose? He's trying to sell a motorcycle that he doesn't own. Since the loan was discharged the lender can not pursue him for any money. Their only option if they don't want to release the lien is to pick up the motorcycle. If he contacts them and they refuse to deal, they may come pick it up, but it's not legally his anyway.

[shakejunt]

It's making a lot of sense now, thanks bob

this forum wont let me post links yet... but I found something very interesting from wiki.answers of this question:
How do you get the title for a car secured in a bankruptcy where all debts were discharged but the finance company did not want the car and never sent you the title?

the answer was the following:

Answer

If the creditor opted not to pick up the vehicle, you can file a Small Claims listing yourself as the Plaintiff and the creditor as the Defendant, and put that you are seeking "0.00" in damages and that you are requesting a Declaratory Judgment that the creditor has abandoned its interest in the vehicle, and you request the Court order the BMV to issue you a new, clean (i.e. lien-free) Certificate of Title on the vehicle. I have had several clients do this and I have never seen a creditor show up and defend the lawsuit as long as you don't ask for money but just ask the Court to order the BMV to give you a new title. Then, you get a clean title to the car for whatever the small claims filing fee is.


could that be possible for this situation?

thanks again

[BobMango]

Now that is a possibility that's worth looking into. In this case it's been years, which should adequately demonstrate the lien holders abandonment.

I guess the thing you'd have to worry about is if your friend is willing to do that to get clear title, will he still want to sell it so cheaply?

[shakejunt]

great point hahaha..... too bad I couldn't get the title in my name some how or prove that I bought it.. but it wouldn't be his to sell so I don't know how that'd work out. If he could clear it himself... he'd probably just keep it for himself then. Interesting situation. Thanks for that point!