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When you give your title as collateral to a friend for a loan can they put a lien on the car if i can't pay the loan?

Tara Andrews

in Student Loans

1 answer

1 answer

Carlton Burgess on November 20, 2018

Yes, that is the purpose of giving them the title of property as collateral. There are legal steps involved and the laws in your area may have some impact on this - so you should consult an attorney to ensure the full protection of their rights. However, the purpose of the warranty is to give the lender something to fall back on in case of not paying, and put a lien on your car would be doing exactly that.

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