I saw this ad and am wondering how can they buy a car with a lien on it and make money. Am I missing something here?
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How does this crap work?
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it's simple. say they buy the car for $500, don't care if it has a title. they notify lien holder theres a $500 bill plus $50/day storage and they'll make about $4k. It's no different or the same thing when you do a payout from a impound yard.
The repo company accross from just did that on a rollback that was out for repo, they knew the guy so they put it in storage for him the bill was $6500 and they settled for $4500 with the bank and they all made money.
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Originally posted by alscode View Postit's simple. say they buy the car for $500, don't care if it has a title. they notify lien holder theres a $500 bill plus $50/day storage and they'll make about $4k. It's no different or the same thing when you do a payout from a impound yard.
The repo company accross from just did that on a rollback that was out for repo, they knew the guy so they put it in storage for him the bill was $6500 and they settled for $4500 with the bank and they all made money.
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I'm sure it varies by state, but basically you're doing a lien sale on a abandoned vehicle that's in your care, custody and control and you're owed money on it. So someone has to pay the bill before it's released.
Where i'm at you have fifteen days to get lien holder/registered owner info from DMV, then you send out certified mail notifying them you have the vehicle and what the fee's are. The whole process with the mailing and then it sits on someone's desk at the finance company, you'll easily get a couple grand in storage plus payout fees and administrative fees.
What their doing above is just buying debt and hopeing for a payoff. It's almost like what finance companies do when they charge off an account and sell it for pennies on the dollar, and a dozen forwarders, debt collectors try to recoup their money plus by putting it out for repo again and again and again and again.
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Originally posted by alscode View Post
What their doing above is just buying debt and hopeing for a payoff. It's almost like what finance companies do when they charge off an account and sell it for pennies on the dollar, and a dozen forwarders, debt collectors try to recoup their money plus by putting it out for repo again and again and again and again.
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Originally posted by 11thHourRecovery View PostI totally disagree. Debt buying is where the debt is being willingly sold by its rightful owner. What they are doing is conning people to give up their vehicles and holding them ransom to the banks (the rightful owners).
But, how do you prove it and chances are most law enforcement agencies won't pick it up as a crime committed.
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Originally posted by JTDAMiami View PostI have to somewhat agree. Here in Florida you are required by law to have and transfer a title to a motor vehicle upon its sale. If a debtor is receiving monies for the car by these third parties then that would be a sale of the vehicle, an unlawful one since title cannot be transferred at the time of sale.
But, how do you prove it and chances are most law enforcement agencies won't pick it up as a crime committed.
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Illegal
Seen this scam a couple times over the years. It's basically a scheme to defraud the lien holder.
In FL, it is illegal for a tow company to compensate for a tow, so if it is done under a towing and storage lien situation, it is illegal right out of the gate.
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there are a couple body shops like this in Charlotte. They claim to do a bunch of work on a car that is ofr or will be soon, file a mechanics lien for 5k in repairs and whatever storage, admin fees, etc. I've bailed many cars from this body shop, always the same deal..... big enough bill to make it worth for the car they have.... last 2 were a 14 genisis coupe for like $7500 that the bank paid and then had a 11 or 12 mustang gt with low miles and bill was like 10k, said they would settle for 6 or 7, title loan so they said F-it, drove by a month later and it's for sale out front.
There will always be these scams. Hard to prove anything. Last time I was there though a dmv inspector was there. I left my card on here door but she never called. wanted to try to help bust this place, but she never called.
We are in the wrong business, but I believe in karma and I couldn't run scams like this, it would come back to haunt/hurt me.
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