My buddy purchased a used atv last year. Turns out this machine has changed hands 4 times and the original owner has a lien on it and stopped making payments... We paid for this machine unknowingly that it had a lien from a previous owner.... What is going to happen? Will we get our money back? Can the bank take it from us even though we have a bill of sale? Shouldnt they just be concerned with the person who signed the loan?

 

I am not an atorney. I have been through a similar situation with a vehicle. The original owner with the lien owns the ATV. Sad to say, but until he has been satisfied, it is his. Depending on the amount owed to you, either small claims or a civil suit.

Good luck,

Specta
clear title 2001 Rubicon

 

The lien is the only "bargaining power" the loan institution has to make sure the loan is satisfied. When payments stop, they have complete power to repo the machine. You might contact them, and see if the amount is low enough to justify paying it off. If not, I would tell them you will surrender the vehicle, then take the idiot that sold it to you to court. If he refuses to pay you, when and if you win the case, you can garnish his wages, or attach some of his personal property up to the amount you are out.

 

Sadly for you, the above advice is correct. Your best bet (and only way to keep the ATV) is to contact the lien holder and see if you can negotiate a payment. Most banks would rather have the lien paid off than have to repo the bike.

No matter if you make a deal with the bank and manage to keep the bike or if they do repo it, your only legal recourse is to sue the person that you bought it from to recover your damages. That person in turn can sue whoever he bought it from....on and on and on back to the first person who sold the bike without disclosing that there was a lienholder.

It's not really fair, as it sounds like there could be two or three people involved who honestly purchased and then later sold the ATV. A bill of sale only protects your friend by showing that he did purchase the bike to gain possession and did not steal it. The only paper that completely proves ownership is a title.

Good luck trying but it's going to be an uphill fight.

Jaybee