QUESTION: If we renew a consumer loan that has an auto as collateral and give the customer new money do we have to re-file our lien on the auto?
ANSWER: If your lien is still valid and has not been released it should continue to the new loan. If you have released your interest on the title itself but still have it in your possession, I would re-file. I lost a lien in bankruptcy court because of this. Although the ruling wasn't challenged and wasn't therefore validated, at least to me, it wouldn't have been cost effective to do so. Under different conditions the outcome could have changed.
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