If a car loan was charged off but not repo'ed. Is there any way to get a release of lien. I have the title but it shows the bank as a lien holder.
No. Charge off does not mean they forgave the debt. If they released the lien they would be giving the car away. You still owe, especially since you still have the car. I think you should pay for the car if you can. You cannot sell the car b/c of the lien. You DEFINITELY need to read this:---> weird situation, please help!
if charge off does not mean they for give the debt what does it mean then. Dont they take it as a loss and write it off on there taxes? It isnt a collection on my report but a charge off. And no im not trying to get out of paying for it. I actual paid more than i should have on the loan. It seems that they added insurance to the loan when i switched companies. I provided them with proof of insurance recently showning that i have had insurance on it during the loan peroid and they said "Its to late now".
if charge off does not mean they for give the debt what does it mean then. Charge off is an accounting term. Means that they do not anticipate being able to collect the debt. Dont they take it as a loss and write it off on there taxes? Yes, they do have the option of adding this on their tax return. As far as the insurance issues, I dunno. Maybe someone more knowledgeable can help.
Simply because a debt is charged-off does not mean you do not owe the money. A charge-off simply means the debt is uncollectable and is considered "non-performing" by the institution and can be written off as a loss. In fact, banking regulations REQUIRE certain kinds of accounts to be charged-off after a period of time. That way banks stay solvent by having profitable, performing loans on their books. You won't have the lien released unless you pay or make other arrangements with the lienholder. You are just lucky they havent repoed your car. Talk with them, I'm sure they will work out something with you.
They can take the car if they want. It fell through the ice 2 yrs ago and is wrecked. Insurance doesent cover falling through the ice. But like i said I have already paid over what was owed because they forced place insurance when i all ready had insurance. but they want me to pay for the double insurance. i cant get rid of the car untill i get a clear title a junkyard wont take it with a lien onit. and the bank dosent want it because of the condition its in. I guess ill have to go to court.
Can't you go to the bank and try to work something out? If the car fell in the lake, isn't it now on the bottom of a lake?
