Total loss Settlement help

[crystagail]

So my car was totalled. My insurance refuses to pay the lien holder until they provide the perfected title but they will not have the perfected title for over 6 months because Texas DMV is backed up as usual. What can I do? I cannot afford to pay this car loan plus my new car loan until the perfected title is provided in 6 months. I'm considering refusing to pay and ruining my credit, but I want to avoid this as much as is possible. I'm struggling. Help??? Advice???

 

[servantofchrist27]

@crystagail I never did total losses and my gut tells me they probably wouldnt do this, but if I were in your situation I'd ask them if they could send me a 2-party check every month for just the amount of your car payment and then subtract that from the total loss settlement. Then you sign the check and mail it to the lienholder to make your payment.

This would be a pain in the ass for everybody involved but there arent really any good options when the standard workflows get held up by things completely out of our control

Really though what SHOULD happen in this situation is the lienholder pauses your payments since the vehicle is totaled and the LH is party to an insurance claim that will get them paid off.

 

[jdannett]

@crystagail Yea, no way they’ll pay a dime without the perfected title in.

I’d speak with your lien holder and see if they’d pause the payments. They may do this if the loan will be paid in full with the settlement. Iv seen it happen.