What is the law for a lein holder with a wrecked car?

what is the law if someone was letting you pay payments on a car and they put themself as lein holder...and the car was wrecked with just liability insurance? does the lein holder just lose that amount and the one paying payments lose a car? there was NO contract...nothing was talking about as far as WHAT IF the car is wrecked...lein holder shouldve required full coverage, right?

this is in texas! Lein holder is just a lady, not a bank or dealership

Sounds like this lady will be able to prove that there was a contract--an oral contract. You agreed to pay her in payments, she agreed to let you drive the car until it was paid for and then it was yours. She can prove that contract by showing that you did in fact make those payments.

You still owe her for the balance.

If she sues you for it, your argument is that she did not "mitigate" her damages. You are saying that she did not take steps to get money out of the car parts, etc. But all she has to do is take reasonable action. If the car was totaled, parting it out can take forever and might not even get her much. The court may not require her to do that.

As for whether she should have required full coverage--that would have been smart of her, but it's still your problem. YOU should have had the insurance to cover this because then you would have the money to pay her what you owe her.

person who was is on the title first is responsable for all .if the lein holder has insurd it they can collect.if car i titled to the first party they are libale for all.yet the lien holder hold responablity to mnake sure the car is was insured.

lien holder has the right to sue the person responsiible for the accident if there is no insurance company to fall back on.

> lein holder shouldve required full coverage, right?

that is certainly what happens with a new car or a used car bought from a dealer.

My guess is this is headed for court if you can't settle it amicably.