QUESTION
can a car purchased with cash be secure by a lien after the sale
Asked on Oct 14th, 2014 on Breach of Contract - Georgia
More details to this question:
my dad bought a vehicle for a friend with cash. the vehicle was bought so the friend could begin work as a landscaper. the friend verbally promised to repay the vehicle cost, and then left the state with the vehicle
1 ANSWER
Yes and no. An unsecured loan can become secured, but not without the debtor's consent. If the friend has defaulted on repayment (it is not clear when he/she was supposed to pay), your father can sue him/her for the amount of the loan and, once he obtans a judgment, he can utilize collection procedures, including (once the proper procedures are followed) having the car sold to and using the proceeds to satisfy the debt.
Answered on Oct 14th, 2014 at 1:06 PM