QUESTION
Do i have to pay the loan off on my motorcycle if the lien holder sent me a lien release
Asked on May 31st, 2016 on General Practice - Colorado
More details to this question:
I was sent the lien release from my lien holder and now I have my motorcycle titled in my name. Do I have to continue paying on the loan or is that the company loss at this point since I now own the motorcycle... Thank you
1 ANSWER
A release of a lien releases a security interest in collateral, it doesn't release your obligation on the underlying loan. Assuming that the lien release is valid, you would still owe money for which you can be sued. If the creditor obtains a judgment which you don't pay, collection measures may include garnishment of wages, and the seizure and sale of assets, including your motorcycle.
Answered on May 31st, 2016 at 9:52 AM