Liens

I sold my Cherokee this week to a local guy that does wonderful work restoring vehicles. I first had the registration from the FAA in 0'12.
In 0'17 I used it as collateral on a bank loan and it was reregistered to the bank.
Same day I sold it I got a call from the bank, come to the principals office. I get there and bankers inform the FAA has found issues from 1980 and 1984 about loans that weren't processed properly thru the FAA. Keep in mind not only was the owner that proceeded me deceased, but both financial institutions are defunct.
The new owner is justifiably upset, refunding his money wasn't an option, but flew it home. At this point, it might be for sale as bucket of bolts- we'll know later.
 
It sounds like nobody did a title search? I bought a plane once and found an old lien in the title. It was not a big deal getting it released by the bank. The loan had been paid off 20 year earlier and nobody told the aircraft records branch. I don't think that's unusual. Hopefully the guy can get the lien released and have a clear title. It's only a big deal when he tries to sell it.
 
Yup. Had a plane where a loan was taken out from bank A, which later changed name to bank B. The FAA ignored the release received on the letterhead from B, since there was no paperwork supporting the successorship from A to B. Complimenting the problem was the fact that the bank is now called C, the whole ordeal happened back in 1988, that was two or three owners ago and the gentleman that took out the loan has long gone west.
 
texas_pilot said:
I sold my Cherokee this week to a local guy that does wonderful work restoring vehicles. I first had the registration from the FAA in 0'12.
In 0'17 I used it as collateral on a bank loan and it was reregistered to the bank.
Same day I sold it I got a call from the bank, come to the principals office. I get there and bankers inform the FAA has found issues from 1980 and 1984 about loans that weren't processed properly thru the FAA. Keep in mind not only was the owner that proceeded me deceased, but both financial institutions are defunct.
The new owner is justifiably upset, refunding his money wasn't an option, but flew it home. At this point, it might be for sale as bucket of bolts- we'll know later.
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Since most defunct banks have had their assets purchased by another, it's still possible to get it released. It's a PITA but BTDT.
 
denverpilot said:
Sounds like lawyer magic has to occur somewhere. :)
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Sometimes, not always. The simple ones are more about knowledge. Basically an FDIC website which tracks bank ownership, mergers, and acquisitions. The more funky ones need a little magic. I had one of those some years back. It was ultimately simple but it took a little time and it definitely helped that I was a banking lawyer.
 
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