Can my credit union auction my car even though it doesn’t have the title?

UPDATED: Aug 15, 2012

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Can my credit union auction my car even though it doesn’t have the title?

I did an auto refi with my credit union and they gave me $7000 towards my payoff with the original finance company. That left a $5000 balance that I had to pay to the original finance company. Because I didn’t have that lump sum of money, I continued to make payments to the original finance company. This past Sunday, my credit union repo’d the car. They said that they did so because they had not received the title to the car. Now they are talking about sending the car auction. Are they able to sell the car without having the title?

Asked on August 15, 2012 under Bankruptcy Law, Georgia


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I suggest that you consult with an attorney that practices in the area of consumer law about your situation. Whether or not your credit union can auction off the vehicle that you have depends upon what your written loan and security agreements state. As such you need to carefully read such documents that I presume you have in that they control the obligations owed to you by the lender and vice versa.

Potentially if the car is auctioned off without title, your state's department of motor vehicles can issue new registered title to the vehicle you have written about post auction.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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