DMV Stops Halt the Holding of Mortgaged Collateral

Personal Finance

Good Morning Lambslife friends, I don’t know about you, but I’m down here in the “sunshine state” but this morning it is the “soggy state.” It rained all night, driving is already dangerous with the sometimes absent minded drivers but precipitation has the interstate looking like a cage full of bumper cars.

Anyhow, I know I am way of tangent this morning, but I want to discuss “DMV STOPS” in FL, do to a couple emails that I have received.  If you aren’t already familiar, DMV stops are added when your financial Institute is searching for your vehicle do to non payment or when forced placed insurance is added and they are trying to protect their asset.

Typically, it’s a last resort but more and more people are hiding collateral, which is against Florida’s state law (FL STATUTE 818.20). Once the “notice to surrender letter” is sent and expires your financial institute can send the request straight to Tallahassee to place stop on the tag and prevent future registrations until the issue is resolved, (meaning either pay current or turn the vehicle in). Some people are claiming that this action isn’t legal but in Florida, it is another line of defense that has recently been implemented to help recover unpaid collateral.

Now I am not an advocate for banks but if you borrow, then you should pay it back, especially if you are still driving the vehicle. I understand many fall into hardship and that is understandable, make sure that you keep communication and call to see if your bank offers loan modifications or extensions. Worst-case scenario you can’t afford the vehicle. It’s best to try and sell it out right or return the vehicle to prevent wear and tear so the highest dollar is earned at auction, thus preventing a higher deficiency balance in which you will ultimately be held responsible for.

 Use this link https://services.flhsmv.gov/MVCheckWeb/ to check and see if you have an existing stop, for additional information on FL STATUTE 320.1316. Please visit http://reposites.com/stop.pdf.  I hope that I have answered your questions thoroughly, if you have questions or concerns, please don’t hesitate to ask. Remember this is not a substitute for legal advice, just a better explanation of what a “DMV STOP” is.