We use vehicle titles as collateral for some of our loans. We work with dealerships and private sales between individuals. We close the loan with the Note and Security Agreement listing the debtor name matching the Driver's License. Quite often, when we finally receive the title, there is a different variation of the borrower's name (middle initial vs full middle name, etc.) or a completely different name (list a business name). We have been going back to the borrower to sign another Security Agreement to match the title.
For anybody who deals with vehicle titles, is this the way we should continue or what do you do to avoid these issues?
Thanks!