Repossessions

A repossession is when a lienholder seizes ownership of a vehicle for breach of a security agreement (usually non-payment of the loan). The lienholder by law must follow the procedures described in this section. When a vehicle is repossessed, whether it is a voluntary repossession or involuntary repossession, the owner is not required to assign the Certificate of Title to the lienholder. The policies specified in this section apply to both Massachusetts and out-of-state Titles.

 

A lienholder who has repossessed a vehicle for breach of the security agreement can transfer the vehicle to a new owner. If the lienholder has a recorded lien on the Certificate of Title, he/she must provide the following items when transferring the vehicle directly to a new owner:

      A notarized Affidavit of Repossession

      A Lien Release letter or a Release on Title

      The Certificate of Title assigned to the new owner

 

A lienholder who has repossessed a vehicle for breach of the security agreement but the lien has not been recorded on the Certificate of Title must apply for a new Title in the lienholder’s name. The lienholder must provide the following items to the Registry to obtain a new Title:

      A notarized Affidavit of Repossession

      A copy of the Security Agreement

      A notarized Affidavit of Fact

      RMV-1 Form completed in the name of the lending institution

      Certificate of Title Fee. Please see the Title Fees section for the applicable fee.

 

A lienholder who has repossessed a vehicle for breach of the security agreement but no Certificate of Title exists for the vehicle must apply for a Title in the lienholder’s name. The lienholder must provide the following to the Registry to obtain a new Title:

      A notarized Affidavit of Repossession

      A copy of the Security Agreement

      A notarized Affidavit of Fact

      Copies of any documentation proving the borrower’s ownership

      RMV-1 Form completed in the name of the lending institution

      Certificate of Title Fee. Please see the Title Fees section for applicable fee.

      If the previous owner did not pay his/her sales/use tax obligation on the vehicle, then the lienholder must meet those obligations. Please see the Massachusetts Sales and Use Tax Requirements section for more information.

 

For more information on repossessions, please see Massachusetts General Laws Chapter 90D Section 17.