A Tale of Refinancing a Car

On the first of March, my husband and I bought a beautiful new car. 2011 Ford Focus, the fancy version. They gave us 2 choices for financing. Ford Motor Credit was offering 0% financing. Bank X was offering a fairly low interest rate, plus there was a $3000 bonus that went with that one. Turned out that the offer from bank X was actually better than 0%.

Then, they said that if we wanted to raise our monthly payments by a bit, that we could have 90 days before our first payment was due. We went for it.

In May, before we'd even made our first payment on the car, we found out that we could probably get refinanced through Credit Union Y for an interest rate of approximately half of what we had from Bank X. Because we felt that a relationship with Credit Union Y was likely to be far more beneficial to us than Bank X, and because the difference in interest rates was not negligible, of course we went for the refinance.

Paperwork comes, we sign it, and we take a check and pay off Bank X. Then we wait for the title to arrive in the mail, so that we can get Credit Union Y added as a lienholder, and finish the process.

We wait.

We aren't sure how long this should take, so we keep waiting.

We get a Release of Lien in the mail from Bank X and file it, expecting the title to arrive any day now.

We're still not sure how long it is supposed to take, but it's feeling like Too Long, so we call Credit Union Y and tell them that we know that we're supposed to be sending the title, but it hasn't arrived yet, so please don't jack up our rates to the unsecured loan rate, OK?

We call Bank X and say that we haven't received our title yet, and do they know what's going on with that?

They tell us that they never received the title in the first place, and that they had asked the dealer about it, but hadn't really heard anything. They said that they would send us a Release of Lien, and that we could take that into the county clerk's office and apply for a duplicate title, and that should take care of things.

So, on July 8, we took the Release of Lien to the county clerk's office, and explain what we need. The woman there told us that we should go to the state office in charge of titling, because the state can print out a title while we're standing there, as opposed to possibly taking 4-6 weeks if the county does it.

Considering that we had just gotten a letter from Credit Union Y saying that they needed the title within 60 days or they were going to change our loan to the unsecured rate, we agreed that driving over to the state office was definitely the way to go.

We got to the state office, and said that we needed a duplicate title, and gave her the release of lien. She then says "I need your release of lien from Ford Motor Credit."

"Wait, what? Ford Motor Credit didn't finance the car, and doesn't HAVE a lien."

So, she starts looking things up. Then she figured out what happened. "So, it looks like when the county got the paperwork from the dealership, they mistakenly put Ford Motor Credit in as the lien holder, and sent them the title. Normally, FMC would send back the title in that kind of situation, but it looks like they didn't. So, you need to get something on company letterhead from FMC saying that they don't have a lien on your car, and we'll issue a duplicate title"

I went to the internet and figured out a phone number for FMC customer service. I call. The computerized system says "To expedite your call, please enter your account number or social security number." uh, I don't have an account. So I wait. "You have entered an invalid answer. To expedite your call, please enter your account number or social security number" And this process repeats for I don't even know how long. Eventually, the system realizes that for whatever reason, I can't or won't input an account number or social security number, and connects me to a person.

"Thank you for calling Ford Motor Credit. May I have your account number?" "Um, well, actually I don't have an account number. Apparently, you were sent my title in error, and I need a letter frm you saying that you don't have a lien on my car so that I can get a duplicate title." "Oh. Um. What's your name?" So I gave her my name. "Um, what's the VIN number? I just need the last 6 digits" So, I located the VIN and gave her the last 6 digits. "What kind of car was that again? That number you gave me doesn't match up with that car. Can you give me the whole VIN please?" So, I read off the whole VIN. "Oh, OK, yeah that VIN is right for that car, but I don't see you in my system."

"Right. We don't have an account, because you didn't finance our car. Bank X financed our car. The county apparently sent you the title in error."

"Well, I don't have any record of that."

Right about now, my brain pretty much quit working.Looking back, I wish I would have said "Of course you don't have a record of it. It never happened. I just called you to tell you that it never happened." Instead, I am pretty sure I reiterated something about the county, and the error, and that I needed something from them saying that they didn't have a lien on my car, which they clearly didn't have, or else they would have some sort of record of it, right?

She wound up saying that if I could get whoever sent the title in error to call and ask, that they would send a letter. Then, because there was no possible way to get back to the county clerk's office before they closed, I told my husband that I would pursue this Monday, and that we needed to go find someplace to eat.

When we got home, we found a letter in the mail from Bank X. It was a release of lien. Then we looked closely at the original release of lien they sent, and it had the correct names, correct VIN, and completely incorrect make & year....it said 1981 Ford. I don't even know what to think of that. The new one, that they sent in response to our phone call asking what was up with our title, had ALL the correct information, which makes me happy. Sort of. I'm still rather baffled by 1981.

Skip to this morning. I called the county clerk's office and explained briefly what was going on, and that the state had told us to call FMC, and that FMC said that they needed to hear from the county. She puts me on hold a few times, pulling up paperwork and trying to figure out what exactly is going on. She asks me if I have a phone number for FMC, and I give her the number I called Friday. She promises to call them, and then call me back.

A little while later, the phone rings, and it's the lady from the county clerk's office. She tells me that she was talking to the people at FMC, and that they were going to send the letter, but then she noticed something in her paperwork.

Last week, on the 6th, someone at the county clerk's office went in and corrected the title, stating that FMC was entered mistakenly, and put Bank X in as the lienholder. There was a note in there that FMC had been sent the title due to county clerk's error. She then tells me that she has my title sitting on her desk, and that we can bring in the release of lien paperwork and loan paperwork and be good to go.

Out of my curiosity and hers, she investigated a little more to figure out who went in to do the correction and why, and it turns out that FMC sent the title to the DEALERSHIP, along with lien release paperwork, saying that they didn't finance that car, and then the dealership sent it in to the county clerk.

Of course, that was on the 6th, and we were in there and at the state on the 8th, and why it didn't show up then is a mystery.

Now, theoretically, we ought to be able to take our paperwork in, say that the title is on S's desk, pay $11, and have the whole thing taken care of. Right about now, I'll believe it when I see it.