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Old 04-04-2017, 05:24 PM   #1
Dr2720
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Default TM buy back from insurance

Well it's done!!.
I just finalized with Usaa to buy back my hail damaged trailer for $1200 plus taxes. The bank will send me the title. Usaa says I have to take it to local DMV to apply for salvage title. Seems strange.
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Old 04-04-2017, 05:40 PM   #2
Bill
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This may be a dumb question, but how will DMV know that the insurance company totaled it? If you have a loan (a lien) at the bank, then I think the title was in the bank's name. And if you pay off the loan, and the bank sends you the title and a Release of Lien letter, I'm not sure that the bank knows (or cares) about insurance. Can you simply apply for "a title"?

We just paid off the loan on our truck (The Moose), and the bank simply sent us the title, marked "Release of Lien" in the appropriate place. No mention of any circumstances, or how the loan was paid, or anything about the insurance company if there was one.

Inquiring minds want to know. When you've done it, can you give us a report?

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Old 04-04-2017, 06:47 PM   #3
Dr2720
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Originally Posted by Bill View Post
This may be a dumb question, but how will DMV know that the insurance company totaled it? If you have a loan (a lien) at the bank, then I think the title was in the bank's name. And if you pay off the loan, and the bank sends you the title and a Release of Lien letter, I'm not sure that the bank knows (or cares) about insurance. Can you simply apply for "a title"?

We just paid off the loan on our truck (The Moose), and the bank simply sent us the title, marked "Release of Lien" in the appropriate place. No mention of any circumstances, or how the loan was paid, or anything about the insurance company if there was one.

Inquiring minds want to know. When you've done it, can you give us a report?

Bill
That's why I thought it strange they would send the title to me. I'll see once it arrives.
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Old 04-04-2017, 06:47 PM   #4
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Bill - Great question! I tell the young people with whom I work that the only "dumb" question is the question that is not asked.

I had a different and interesting situation with my title. After buying the TM back from the insurance company, I drove to a salvage yard in Brighton, CO to pick it up. The place had security in place that would match that of a penitentiary. While waiting for someone to help me, I noticed a guy looking at different damaged vehicles on a computer. As he scrolled thru the photos, I saw my trailer. I asked about it and he told me it was for sale. I told him not to buy it as the title to it was in my safe deposit bank in Virginia. (It's still there today.) I owned it outright so no bank was involved. The insurance company never asked about the title. They sent me a check for several thousand dollars minus the buy back price $500).

Long story short (if not too late), the tow company told the people in the lot that the insurance company said to sell it. When we got my insurance guy on the phone, he told them to give me my trailer and that they would pay all fees due. End of subject.
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Old 04-04-2017, 08:09 PM   #5
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Can say you really do not want a salvage title but the meaning varies from state to state. Can say that in Florida I would never give anyone a title unless they were taking possession. If it is a bank that had a loan then it should be paid off and you should get a regular title. Keep it safe and don't let anyone mark it "salvage".
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Old 04-05-2017, 09:03 PM   #6
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We had the same thing happen, but the insurance company made sure that it was reported as salvage. I can't remember exactly what happened, but there was no way to get around it. We're in CA. It was a PITA. We had to get it inspected for all of the lights, brakes, breakaway, etc., and then tow it over to the CHP station (that does not have great access for trailers) and pay the license fee again (even though we'd renewed it a month before, never got a refund) plus another title fee.
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Old 04-05-2017, 09:53 PM   #7
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Quote:
Originally Posted by Padgett View Post
Can say you really do not want a salvage title but the meaning varies from state to state. Can say that in Florida I would never give anyone a title unless they were taking possession. If it is a bank that had a loan then it should be paid off and you should get a regular title. Keep it safe and don't let anyone mark it "salvage".
If they send the title directly to me I hope it's not marked because I have already paid for a permanent tag.
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Old 04-05-2017, 10:13 PM   #8
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HI all

Here's how it works in most states.....

1. He had a loan on the camper. That means the bank has a lien and if a title holding state, they also have the title. Title only goes back to owner when paid in full. Insurance company should be reporting it to state DMV that it is salvage. Once lien is released, state issues a new title to the owner. That title should say salvaged.

2. The loan has to get paid off regardless of how much the insurance company pays. Bank communicates with the insurance company re: amount owed etc. if amount paid by insurance company is not enough the borrower still has to pay the difference. Check will be payable to both bank and the borrower....both have to endorse it. Bank decides how it gets applied.

3. By default, bank will thus know that the insurance company is going to total the camper. They likely won't want to lend money on a camped that was totaled. If they will it would only be a fraction of the value before it was totalled.

4. The value of the camper is permanently devalued because it was deemed too damaged to be worth repair. Doesn't mean it doesn't have some value, or that it's not usable. Those are two different things.

5. To not retitle the camper as salvage would be at minimum deceptive and at worst fraudulent.

6. No lender and no insurer would knowingly lend or insure at full blue book value if they knew the camper was totalled by insurance company. What if there is another storm, say a wind storm and the camper Is demolished? Would you expect payment at full blue book? If lender had to repo it for non payment and they try to sell it, they won't get what they should because it would have existing damage.

7. If I were buying that trailer from you down the road and I think I'm getting a good price, but later find out it was salvaged and you didn't tell me, I would be pissed. Even if you fix things it's never as good as before, and thus not as valuable. Likewise, if you tell me upfront it's a salvage, but it only had XYZdamage, and I still buy it, then I am an informed buyer and can make an educated decision.

8. Lastly, just because you have a title sitting in your safe it doesn't mean that is the most current version. A lot has changed over the years with electronic lien release, auto issue of new title, etc.

How exactly it works depends on your state.

Ok off my soap box....
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Old 04-06-2017, 07:38 AM   #9
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I second what Bailey's Mom said. Item 7 is the main reason the state wants to ensure it gets tagged as "salvage".
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Old 04-06-2017, 07:52 AM   #10
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Exactly, each state is different. Here the insurance company pays for my loss and as long as the title is not marked "salvage" it isn't. The only reason a title is changed to salvage (COD) is for the insurance company to save money - a "salvage" title costs $7, a regular title is 10X that.

Now I am not a lawyer but it was explained to me like this: you have suffered a loss/damage for which the insurance company is compensating you. The concept of "totaled" merely means they have put a limit on their liability. The ownership (which is what the title is about) has not changed. If sell on then your obligation is to disclose that the damage occurred, its extent, and what was done to repair it. The title has nothing to do with this, it is merely a way to indicate and convey ownership.

At least this is how it works in Florida.

ps there are actually two forms of salvage title here: salvage rebuildable (rare) and salvage COD (certificate of destruction). With a COD the vehicle can never be licensed and can only be sold three times before being dismantled. This is the most common form because it is the least expensive.
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