Bob_Belville Posted May 10, 2014 Report Posted May 10, 2014 A friend of mine is selling his plane. The buyer's title search uncovered a lien from 1977 that is still on the FAA file for the plane. The plane had changed hands twice since then and the loan was paid off long ago. The bank who filed the lien has change names 2 or 3 times as well. The new buyer wants the paper work cleared. Anyone here been through this? Would you start at the bank, the FAA, the title search company...? Quote
drapo Posted May 10, 2014 Report Posted May 10, 2014 When I bought my Mooney, there was an outstanding lien dating back to the 70's. The lien company offered to research and clear it for $500 or more, depending... It took the seller a couple of months and few phone calls and letters to get it cleared. The bank had merged with Bank of America! Quote
Bob_Belville Posted May 10, 2014 Author Report Posted May 10, 2014 When I bought my Mooney, there was an outstanding lien dating back to the 70's. The lien company offered to research and clear it for $500 or more, depending... It took the seller a couple of months and few phone calls and letters to get it cleared. The bank had merged with Bank of America! Yeah, BoA is involved in this one but it was North Carolina National Bank which became NCNB which became BoA. I guess no one paid to get it cleared, it just took persistence with the bank? Quote
Cruiser Posted May 10, 2014 Report Posted May 10, 2014 If you have the discharge papers from the original bank showing the cancelled lien, take it to your local BoA loan office and go from there. You should know what the FAA is going to require so you can guide them, but BoA does a lot of aircraft loans so if you get to the right contact, they should be able to process it. Quote
Mooneymite Posted May 10, 2014 Report Posted May 10, 2014 Clearing a bank lien is pretty easy. I did a deal on a plane that had been bought by a broker at a Sherriff's auction. The owner was in jail and not in a mood to sign anything for anyone. Yeah....bank liens are easy! Quote
Bob - S50 Posted May 10, 2014 Report Posted May 10, 2014 We had a similar situation last year. We bought our '78 J through LASAR. When we did the title search it turned up a lien by a bank from the original owner. The bank had changed names but we tracked them down, contacted them, and got them to release the lien and send us paperwork to that affect. Of course they kept making mistakes on the paperwork because there were not paying attention to details (wrong names on the paperwork for example). We finally got what we needed and bought the plane. Bob 1 Quote
drapo Posted May 10, 2014 Report Posted May 10, 2014 Yeah, BoA is involved in this one but it was North Carolina National Bank which became NCNB which became BoA. I guess no one paid to get it cleared, it just took persistence with the bank? No money exchange, just a signed release from the Bank. The lien was for a temporary loan to an aircraft dealer in California that was reimbursed once the airplane sold. Quote
midlifeflyer Posted May 10, 2014 Report Posted May 10, 2014 Start with the bank, Bob. They should give you a release in the name of BoA fka North Carolina National You'll may also need to be prepared to show the FAA the clear transition from the old bank name to the new one. I was once through a bad one of these for a client. It was bad because the name chain go broken along the way and no one was willing to take ownership. The problem wasn't the bank; it was the FAA's acceptance of the release. Took a while to finally get it resolved. But that was an unusual situation. Most are much simpler. It's really too bad FAA liens don't simply have expiration dates. UCC liens do unless they are actively continued by the lender, and even mortgages ultimately expire. 1 Quote
BigTex Posted May 11, 2014 Report Posted May 11, 2014 I had an issue with my lien dated back in the 70's. The title company side that the prior owners were likely deceased, it would be very difficult to clear up. So they recommended purchasing lien insurance and not worry about it. Quote
carusoam Posted May 11, 2014 Report Posted May 11, 2014 There is a long thread going back a couple of years... Mitsubishi, I believe financed many Mooneys and lost the paperwork over the many bank transitions... Fortunately it is possible to get them cleared up. It would not be good to have a messy trail if you can get it cleaned up... Search for the old thread as well... Best regards, -a- Quote
carusoam Posted May 11, 2014 Report Posted May 11, 2014 This might be it... http://mooneyspace.com/topic/6062-mitsubishi-lien-on-68-m20c/?hl=%2Bbank+%2Btitle#entry77523 -a- Quote
Ratherbflying Posted May 11, 2014 Report Posted May 11, 2014 I'm going through this right now and getting guidance from an insurance adjuster. They have to deal with lien clearing all the time and know many of the ways to speed things up. You might try calling your insurance company and ask them for help with the process side of this. Quote
FloridaMan Posted May 11, 2014 Report Posted May 11, 2014 I had the same thing. I bought title insurance from AIC, but still could not get a loan so I ended up paying cash. Quote
John Pleisse Posted May 12, 2014 Report Posted May 12, 2014 Call AIC Title in OKC.....they'll handle it...usually within a day or two. I can't speak for them, but I was quoted $300 to $500 for a recent, very similar situation. Quote
Bob_Belville Posted May 12, 2014 Author Report Posted May 12, 2014 The city exec at BoA said he would take care of it. Said it usually takes 24-48 hours. We'll see. Quote
midlifeflyer Posted May 12, 2014 Report Posted May 12, 2014 The city exec at BoA said he would take care of it. Said it usually takes 24-48 hours. We'll see. Excellent. Quote
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