I sent an email asking why it was salvaged.

 

In Ohio if you lose your title you go to License bureau and pay for new one. They ask you why reason being that you lost, stolen and so forth and mark it. It is in their system so if someone tries to use it they have it noted.

 

I do understand the process of re-printing a lost title (I've had someone go through that one before, it's not too horrible to go through).

In this case though, the seller did not "lose" the title, as the seller never had the title (other then MAYBE a memorandum title from the bank to prove he bought the car and the bank is holding the title in his name until the loan is paid off). The car was owned by the bank and the seller defaulted on the loan. The bank sent it all to collections but opted NOT to pick up the car.

It is possible for the bank to opt to not pick up the car. If the bank believes the value of the car is not worth the bank's time to pick it up, they leave it (I know someone right now in that situation, the bank refuses to pick up the car and they don't want it).

So anyone who buys the car either has to sort it out with the bank OR possibly pursue getting the title as you would in the case of an abandoned vehicle (where you are not the owner, don't know how to contact the owner and the vehicle has been abandoned for some time).

 

I'm betting it's not really a salvage title. When he listed the car, there probably was not an appropriate option that fit what he placed in the description:

He does not have the title. The bank or collections agency does. At MOST he might have a memorandum title (but you cannot use that to sell a car). So he is selling a car that is in his name but he clearly does NOT own the title because he defaulted on the loan payments.

 

I called him, he says it was due to bankruptcy and he can get a salvage title for it. I then called the local BMV to clarify. She stated that if he can get a salvage he can get a regular title. He didn't know off hand who his loan was from and would have to look it up. He said that he has had the car for 12 years or so.
Also taking the car out of state you would need an inspection beforehand. BIG "IF" I did I would also contact the local police as an escort. Only 1,xxx live in the town too. If he is trying to scam and we contact the financial institution they could take action and maybe save this car.
I posted at work on our barter board to ask if anyone has Carfax to look it up.

In closing someone else call to find out who the financial institution is and why he is selling it too.

 

How can he own it for 12 years or so? It is a 2003.

 

He didn't seem to know much.
Maybe he said 10. I did call out there central time around 10 maybe he was still waking up. There was noise on his side of the phone which did make it harder to hear him. He didn't sound thrilled when he told me out was bankruptcy.

 

If the bank is still holding the actual title, I am not sure how he can get anything beyond a memorandum title (as he does not technically own the car since their is still an active lien on it).

If you really wanted to pursue it, i'm sure with the VIN, you could find out who holds the lien on the title.

Bottom line, as long as there is an active lien on it, I'm fairly certain he can't outright sell it like I could my car (which I have the title in hand).

Also, I went through the out of state inspection for Ohio when I bought my Monte from New York. It's simple, just a stupid annoyance (big thing is, you need to have a new car dealer or select title bureaus validate the various VIN locations on the car and pay them $1.25 for that service).