I bought a pawned car, what should I do?

What are the risks of buying a mortgaged car?

Among the cunning tricks of fraudsters, the sale of collateral cars is common. Having bought such a car, the new owner may soon lose the purchase and the money paid for it forever. Autocode tells you the dangers of purchasing a pawned car and how to avoid dealing with an unreliable seller.

Content

In order not to confuse the concepts, let’s figure out how a secured car differs from a credit car.

What does pledged car mean? This broad definition includes: both the presence of a car on a car loan and its performance as a guarantee for a loan from a bank or other individuals and individuals.
Credit vehicles are purchased on credit from banks and intermediary institutions. It may be collateral at the same time, or it may not, if the borrower offered other property.

How does a car end up as collateral?

The collateral ensures the fulfillment of obligations by the borrower. As long as he returns what he borrowed on time, the lender has no claims. However, he can go to court if the debt is overdue. Then, as compensation, the creditor takes what was pledged. So, when can a car be pledged:

Car loan – purchasing a car on credit is a quick and simple matter. This requires a minimum of documents and time. The new car is pledged to the bank until the loan is fully repaid.
A consumer loan involves the issuance of cash for the purchase of durable goods. Banks are developing various programs for borrowing money against car collateral.
Private financial organizations issue loans secured by PTS. The probability of refusal is low, while the borrower continues to drive his car. The advantages of this method include efficiency and a low interest rate.

The above organizations try to collect debts on their own with the help of collectors or sue. In the second case, the borrower is required by law to repay the debt with all penalties, and the collateral goes to the bailiffs. Government organizations can also sue for non-payment of debts.

What happens if you buy a mortgaged car?

Vitaly Zaikov, expert, director of the Old City car pawnshop:

“It all depends on the situation when the car was purchased as collateral. If the new owner, during the purchase and sale transaction, obtains from a lawyer an extract from the pledge register, which will indicate that the pledge has not been registered, then the buyer may be recognized by the court as being in good faith. Depends on whether the seller has a duplicate PTS or not, and how long ago it was received. If, at the time of signing the purchase and sale agreement, the pledge was noted in the register, the buyer had the opportunity to check it, but did not check it, the purchase of a pledged car does not meet the requirements of good faith, so there is no reason to remove financial responsibility. The car will be seized.

Although the register of pledges is in the public domain, you can say in court that I went to the site and at that time there was no pledge. In judicial practice, it is customary for the buyer to “walk with his feet” to the notary and take an extract, then his actions indicate good faith.

So if the car turns out to be collateral, you need to prepare for the trial in any case. Therefore, an extract from the register of pledges is the main evidence.

When buying a car second-hand, always check it using open sources: the traffic police and the notary’s pledge database. The seller should be checked against the bailiff service; sometimes he has a “credit” debt, which should alert you. Or there may be a fine of 500 rubles, due to which the bailiffs will impose restrictions, so the car will not be re-registered by the traffic police and the issue will have to be resolved with the bailiffs.”

Real stories about buying a pawn car

Alexander Makarov, auto expert:

“The pledgor can take back the car if the pledgor stops fulfilling his payment obligations. The situation is serious - the new owner in this case risks being left without everything. And there are plenty of examples. A friend of mine had a case. He bought a car for 450 thousand rubles and became its third owner. I didn't check the car when I bought it. A year later, bailiffs showed up and explained that the car was the property of the bank. The first owner stopped paying the loan, and the bailiffs decided to take the car. A friend had to pay someone else’s debt of 200 thousand rubles in order to keep his car. Later it turned out that the previous owner did not even know that the vehicle was pledged.”

How to check a car for collateral

You can check the car for collateral before purchasing through the Autocode service. When issuing money in any organization, the borrower is asked to indicate the vin code of the car, which is entered into the notary's pledge database. Having access to the register of pledges in the Federal Notary Chamber, the Autocode service issues a report on when his vehicle was pledged.

We recommend that you immediately pay attention to the item “Information about being pledged to banks.” Either the machine will be “clean” or the following will be on the list:

Is the car listed as collateral?
Date from which the car is pledged

Also from the report you will learn the full history of the car: data on mileage, accidents, technical. inspections, fines and much more.

Buying a mortgaged car, as we have already noted, is a dangerous business. All that the new owner of the car can do is file a lawsuit against the seller, of whom no trace has long since disappeared. Sometimes an ignorant buyer is offered a cunning plan - to include a low price for the car in the contract in order to bypass the tax system. In this case, the money will definitely not be returned. In order not to run into pawned cars and avoid serious consequences, we strongly recommend checking, checking and checking the desired car again.

What to do if the purchased car is pledged?

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No one is protected from purchasing a car that is pledged to a bank. After all, it is impossible to check this when signing a purchase and sale agreement. The maximum that can be done is to check the information in the traffic police database for restrictions or fines. So what to do if the pawned car has become your property? Let's look at all the details.

What is a deposit and why is it dangerous for a car owner?

According to Art. 334 of the Civil Code of the Russian Federation, the pledge is security for the debtor’s obligations under the loan . It can be any property: both movable and immovable. For example: if a client takes out a car loan, the purchased car serves as collateral. If a mortgage is issued, the collateral is an apartment or other living space.

The withdrawal of movable and immovable property from the pledge is carried out in accordance with the legislation of the Russian Federation. It is possible to lift the ban on the alienation of a car or other collateral property only after full repayment of loan obligations.

In other words, property can be sold only after full repayment of the loan for which it is collateral. And this creates certain problems for potential car owners.

If the purchased car is pledged to the bank, this means several serious problems for the new owner.

Firstly, it is impossible to register . In accordance with the law, a ban on registration actions has been imposed on him. That is, the owner does not have the opportunity to fully manage such property - register it in his name, sell it, or officially make changes to the design.

Secondly, the restriction on registration actions will remain in effect until the previous owner pays off his debts, after which he provides documents confirming payment. Only in this case will the bank send a request to the traffic police to remove the deposit from the car.

Alas, cases where the former owner fully repays the loan debts are quite rare in practice. As a rule, an unscrupulous seller simply disappears, and the new owner is responsible for solving problems with the bank and removing the property from collateral.

It is also worth considering that if there was no timely payment on a loan for which a car is used as collateral, the bank has the right to demand from the borrower in court full repayment of the debt. If the borrower refuses to comply with this requirement, the banking institution has the right to take away the collateral and sell it at auction. In this way, it makes up for its losses on the loan.

But even in this case there is a solution to the problem.

If the car was seized from the new owner, he has the right to sue the citizen who sold him the car as collateral.

In the statement of claim, demand reimbursement of the purchase amount. As practice has shown, such claims are satisfied in 90% of cases. But how quickly the debtor will be able to pay the amount assigned by the court is unknown. Most likely, the victim is left without a car and without money.

Please note that experienced scammers can resell a pledged car several times . Each of the previous owners cannot register it in their own name. And the bank is already having a hard time finding the car. But problems with registration actions remain until the loan debt is paid.

What to do if the purchased car is pledged

A huge number of legislative acts have been created to protect the buyer of such property. According to Art. 460 of the Civil Code of the Russian Federation, the seller is obliged to transfer to the buyer the goods free from the rights of any third parties . The exception is when the buyer voluntarily assumes the responsibility to repay the debt on a car loan for the previous owner.

What rights does the article of the Civil Code of the Russian Federation give:

demand from the seller to reduce the cost of the goods taking into account the debt on the loan (that is, subtract the amount of debt from the price of the car);
return the purchased product after completing the transaction, if third parties have rights to it.

As practice has shown, it is quite difficult to prove that the new owner of the vehicle did not know that the car was pledged.

Since 2014, a nationwide register of pledged property has been created. FNP (Federal Notary Chamber). Anyone can access information from the database.

Using the registry, you can check the property for collateral before purchasing it. This is practiced quite widely, especially when purchasing a vehicle, when the purchase and sale agreement is drawn up on plain paper or a special form.

But almost no one turns to the services of a notary, who can also verify the collateral property. Perhaps this is why there are so many deceived buyers in Russia.

What options are there from a legal point of view?

According to Article 353 of the Civil Code of the Russian Federation, collateral obligations on a vehicle are transferred to the new owner. This rule is stated in the loan agreement in the appropriate paragraph.

But what’s interesting is that the traffic police may very well re-register the pledged car to a new owner. He will drive it until the bank claims ownership of the vehicle.

What happens next:

the new owner has the right to go to court to recover the cost of the car from the old owner;
can agree with him on voluntary payment of loan debt;
repay the car loan on his own so that the car remains his property.

What to do if you bought a car, but the car is pledged to the bank? How to sell?

Today, almost everyone can afford to buy a car, which is associated with the extensive development of car lending services (minimum documents and time - and you become the owner of a brand new car). To ensure the fulfillment of loan obligations by car owners, banking institutions resort to drawing up a pledge agreement, under the terms of which the car is pledged to the bank until the car owner fully fulfills his loan obligations.

That is, the car owner does not have the right to sell, donate or exchange his credit car until his car loan is fully repaid.

Thus, a new buyer of a used car may not even realize that he is purchasing a mortgaged car.

The main reason for this “inconsistency” is the lack of complete information about all collaterals. In addition, traffic police officers do not have information regarding the collateral, therefore, a car purchase and sale agreement easily passes the registration procedure.

An unscrupulous seller may have only one difficulty - the lack of a passport for the vehicle (hereinafter referred to as PTS), since it is located in the branch of the bank being financed. But this can also be solved:

under a plausible pretext, you can agree on a “temporary” receipt of PTS;

request a duplicate of the PTS from the traffic police, for example, due to its loss;

Some banks do not collect the title for a mortgaged car.

It turns out that only after some time can the truth emerge, after which deceived buyers ask only one question - “What to do if you bought a car as collateral from a bank?”

Procedure for buying a car with collateral

If you bought a car with a mortgage, first of all, do not despair.

First of all, you can try to resolve this issue peacefully - find the seller and agree on the “peaceful” termination of the purchase and sale agreement.

This method of resolving the issue is successful only if the bank has not yet gone to court to foreclose on the property.

As a rule, the car seller knows about the judicial collection of credit funds, so it is almost impossible to come to an agreement in such cases - you have simply been deceived!

Your second step should be to write a statement to the police regarding fraud. This confirms the fact of fraud by the seller in relation to his bank, in connection with which a criminal case will be initiated.

You shouldn’t hope for specific actions from the police, but you definitely need to write a statement.

The third scenario is to file a claim in court against the car borrower, where the bank learns that the vehicle has already been sold and they are already trying to bring the new car owner to justice. That is, they demand foreclosure, but from your car.

This development of events depends on the date of the transaction. If the purchase of the collateral property was completed before July 1, 2014, then the development option is the following - the court, by its decision, forecloses on your car, that is, it will be seized and sold at auction.

After which, you have the right to file a lawsuit against the car seller and demand that he return the amount of money paid for the car to you.

Reasons for the one-sidedness of judicial practice:

Art. 33 of the Federal Law of December 2, 1990 N 395-1 “On Banks and Banking Activities”, which states that collateral acts as one of the main ways to ensure the repayment of loans provided by banks.

clause 2 art. 346 of the Civil Code of the Russian Federation, according to which the pledgor (Borrower) has the right to alienate the subject of pledge to another person, but only with the consent of the Bank (pledgee), unless otherwise provided by law or agreement and does not follow from the essence of the pledge.

clause 2 art. 351 of the Civil Code of the Russian Federation, the pledgee (Bank) has the right to foreclose on the pledged item if the pledgor violates the rules on the disposal of pledged property, even if you did not know that the car was encumbered with a pledge.

Thus, the transfer of ownership in no way terminates the right of pledge - the legal successor of the pledgor takes his place.

The second development option, if the purchase and sale transaction of a pledged car was completed after 07/01/2014, then Art. 352 of the updated Civil Code of the Russian Federation, which states that the pledge is terminated if the buyer of the pledged property is in good faith, that is, did not know that the purchased property was pledged.

That is, there is a chance to defend your property, namely, to file a counterclaim to recognize the buyer as bona fide and consider the pledge as terminated.

The order of events directly depends on how carefully the buyer behaved when making the transaction. Indirect negligence of the buyer is:

underestimation of the value of the car in the purchase and sale agreement;

purchasing a car using a duplicate title or a fake title;

availability on the date of the transaction of information about the pledge in the register of pledges.

To successfully resolve this problem, you will need to prove that there was no chance of finding out about the deposit at the time of purchase.

We draw your attention once again to the fact that the new rules on collateral apply only to those transactions that were completed after 07/01/2014. Therefore, if the purchase was made earlier than this date, and you only now learned that the car is pledged to the bank, then the old legislation will apply, and the chance of keeping the car will be minimal.

How to sell a car with a bank as collateral

Now let's look at options for how to sell a car as collateral.

There are 8 ways to sell a pledged car:

1 Independent sale. The borrower independently finds a buyer, after which the loan is repaid early and the car is released from collateral.

2 Selling a car with the help of a financial institution. The borrower instructs the bank to resell the car. In such cases, the car may be sold at a reduced price, and you will have to pay off the shortfall in credit personally.

3 Sale through auction. The loan is repaid using the proceeds from the sale.

4 Trade-in - the sale of a car is carried out through a car dealership, which then undertakes to repay the loan.

5 Re-establishment of a car loan is the re-issuance of a loan in the name of the buyer.

6 Applying for a consumer loan - to repay a car loan, another loan is issued - a consumer loan.

7 Sale by means of a power of attorney. The borrower receives the difference of the agreed amount from the balance of the debt on the car loan and issues a power of attorney in the name of the buyer, who subsequently continues to repay the loan.

8 Exchange of loan for deposit. The borrower gives the car to the owner of the deposit, and he repays the borrower's loan using the deposit.

Based on the above, it follows that buying a car must be approached with particular scrupulousness, since this seller may turn out to be a fraudster and then you cannot avoid difficulties. The listed methods of selling a pledged car are successful only if you know about the pledge of property, which allows you to resolve the issue mutually.

What to do if the purchased car is pledged?

Hello, dear editors of T—Zh! I’ve been reading you for a long time and enjoy it, but I never thought that there would be a need to ask a question.

Two and a half years ago we bought a car second-hand. The purchase and sale agreement stated that this car was not collateral. We clarified this issue with the traffic police, they also confirmed that the car was clean, but we did not take any written confirmation then. And now we have received a subpoena: they are summoning us as a co-defendant with the previous owner. The plaintiff is a bank. A lawsuit regarding debt collection and foreclosure on mortgaged property - our very car.

Now we have a purchase and sale agreement and a subpoena in our hands.

Actually, the question is: how not to be left without a car and without money?

It is possible to keep the car if you can prove in court that you are a bona fide purchaser and did not know that the car was pledged to the bank.

I'll tell you what you need to do for this.

What is collateral

A pledge is a way of securing the debtor's obligations to the creditor. For example, a person buys a car on credit, registers it as his property, but the car remains the subject of collateral. If the car owner cannot repay the loan, the bank can sell the car and recover its losses or part of them. It is legal.

The collateral can be not only a car, but also any other property, securities and even property rights.

When reselling the property, the deposit is not automatically removed. That is why, when registering real estate transactions, certificates of no collateral are required. But for motor vehicles there is no such mandatory requirement, so owners often find out about the presence of a lien only after receiving a summons from the court.

If the matter comes to trial, I propose the following course of action.

Contact a lawyer

Google knows everything, but it doesn't know all the intricacies of your business. And a good lawyer can see them.

Check the date of purchase of the car

You write that you purchased the car two and a half years ago. It is very important. The fact is that on July 1, 2014, changes to the civil code came into force that protect bona fide purchasers. In Article 352 of the Civil Code of the Russian Federation, paragraph 2 appears, which states that if you bought property, but did not know that it was pledged to the bank, then the pledge is terminated and the bank has no rights to the car.

If you bought a car before July 1, 2014, then this article does not apply: there was no such rule in the Civil Code of the Russian Federation at that time. The law does not have retroactive effect, and in this case there is a high probability that the car will become the property of the bank.

Check if the pledge has been registered

Article 339.1 of the Civil Code of the Russian Federation states that a pledge of movable property can be registered in the Register of Notifications of Pledge of Movable Property. This registry is publicly available, and when buying a car, anyone can check by the VIN number whether it is mortgaged.

The bank is not obliged to register the pledge: this is its right. But if for some reason he did not want to register it, then you could not know about this pledge and are considered a bona fide purchaser. In this case, the court may decide that the mortgagee himself is to blame: he did not inform anyone about this fact. If the bank registered the mortgage after you signed the purchase agreement, you are also considered a bona fide purchaser.

But if the pledge was registered before you bought the car and information about this is in the registry, then the court may decide that you yourself are to blame: they could have checked whether the car was pledged or not, but they didn’t check.

Check the car documents

Look at what documents the previous owner of the car provided you with and what is written in them. Check it:

The PTS and STS should not contain a note that the car is pledged.
The PTS must be an original, and not a duplicate made to replace a lost one.
The purchase and sale agreement should not contain information about encumbrances and restrictions.

If at least one of these documents contains information about the restrictions imposed on the car, then the court has every right not to recognize you as a bona fide purchaser.

See if the price for the car in the contract is underestimated. Many sellers lower the price to avoid paying taxes, but in your situation, the court may regard the lower price as indirect confirmation that you were aware of the restriction and agreed to purchase at a significant discount.

What should you do

You will have to prove your integrity yourself.

Your main task is to convince the court that you had no way of knowing that the car was pledged to the bank. The court does not automatically recognize your right of ownership. You will have to collect evidence and present your arguments.

The court cannot check documents and registers on its own initiative either - you will have to file a petition for this. But remember that no evidence can have a predetermined value for the court. They are assessed along with other evidence in the case, including that provided by the bank.

The court will not accept the fact that the car is registered with the traffic police as confirmation of the bona fide purchase. The traffic police do not yet have databases with information about collateral, and police officers also have no obligation to do such checks.

It is also useless to say in court that you did not know about the existence of a register of pledged property. Ignorance of the law does not exempt you from responsibility, and the rules for registering and accounting for pledges of movable property are provided precisely by law.

But in general, the position of the Supreme Court is this: the acquirer does not and cannot have an obligation to assume the possible illegality of the transaction. This applies not only to vehicles, but also to other property: apartments, land plots.

What are my guarantees?

None. Both your arguments and the bank’s arguments in court have equal strength, the judge will evaluate them together. And remember that judges are people and can make mistakes too. We have a whole section about this - “Amazing Stories”.

My recommendations are:

If you decide to purchase a used car, first check it in the collateral register.
If it turns out that the car is pledged, find a good lawyer.
Check the date of purchase of the car, the documents for it, and whether there is information about it in the register of mortgaged property. If they do not contain information about encumbrances, it makes sense to fight in court.
Prepare seriously for the trial. Both your arguments and the bank’s arguments have equal force for the court.

What to do if you bought a loan or secured car?

Buying cars on the secondary market is accompanied by great risks. Not only may the condition of the vehicle not correspond to the price, but there is also a high risk of running into scammers who resell a car for which they do not have a license.

How does a car end up as collateral with a bank?

A car may be encumbered when it acts as collateral for a loan. This can be either a consumer loan or a car loan (in which the purchased car always becomes collateral). Also, the car can become the property of microcredit organizations and pawnshops. In any case, a pledge agreement is drawn up - a document establishing the conditions for the return of the pledge, as well as the rights and obligations of both parties: the owner and the pledgee.

What happens if you buy a mortgaged car?

If the borrower stops repaying the loan, the bank goes to court to seize the collateral. And they don’t care that the car has a new owner who didn’t even know about the loan.

If you purchased a pawned car, then there are several options for how things might turn out:

the previous owner is an honest person who will repay the loan with the money received from the sale of the car;
You will be able to prove your good faith to the court: the bank will lose its right of collateral, and the return of the loan money will be demanded only from the fraudster;
You will not be able to prove that you applied to the pledge registry, and the court will recognize you as an unscrupulous buyer, and the car will be transferred to the bank.

Changes in legislation

On July 1, 2014, Article 352 of the Civil Code of the Russian Federation was changed. Now, after the sale, the encumbrance on the car is removed if the buyer is found to be in good faith. This means that he had no opportunity to find out about the pledge agreement on the purchased property. To prove your good faith, you must provide the court with an extract from the pledge register certified by a notary. If at the time of purchasing the car, the encumbrance on it was not registered in the registry, then the buyer is considered in good faith and has the right to continue using the car.

However, not all so simple. If the car was purchased before 07/01/2014, before the amendments took effect, then the bank will still have the right to seize the collateral. No matter how unfair it is, an honest buyer will be left without a car. In this case, all that remains is to file a claim against the previous owner and demand compensation. The money can be returned through the court. This is why the real value must be indicated in the purchase and sale agreement.

In what situations is the car not confiscated?

Victory in court is guaranteed by the following three conditions, each of which must be met:

the transaction was carried out after July 1, 2014;
there is no evidence indicating that the buyer knew about the encumbrance;
on the day of purchase, an extract from the register of pledges was received and certified by a notary, indicating the cleanliness of the car.

There are also some circumstances that will speed up and simplify victory in court:

the DCP states that the car is not pledged;
the new owner has the original PTS;
the bank did not provide information to the register or provided it only after the moment of resale;
not a single clause of the purchase and sale agreement contradicts the legislation of the Russian Federation;

In what situations is a car seized?

Now let's look at the reverse conditions, highlighting some nuances. The court will decide to transfer the car to the bank if at least one of the following circumstances exists:

the car was resold before the amendments to the Civil Code came into force, before 07/01/2014;
the bank or the old owner of the car provided evidence that the buyer knew about the lien;
the new owner either did not provide an extract from the register of pledged property, or provided an uncertified document, or provided a document certified by a notary who did not have a license at the time the service was provided.

There are also conditions that will complicate the conduct of a court case, even if none of the above points are met:

all copies of the purchase and sale agreement are lost;
the contract does not indicate that there are no encumbrances on the car;
the buyer only has a duplicate of the title, it is even worse if the car was sold as a duplicate;
there is no information on the date of providing the register with information about the encumbrance on this car;
some parts of the purchase and sale agreement are considered invalid (the more, the worse).

How to check a car for collateral

There are many ways to check a car for encumbrances. The most reliable way is to contact a notary. However, this service is paid. If you have not yet decided on a car and want to check several at once, you can use the tips from this article: “How not to buy a credit car.”

Actions if you bought a credit car

It is better to deregister and register a car together with the seller. If you come to the traffic police yourself, and the employees refuse to register you due to the presence of an encumbrance, you first need to contact the seller. He may be planning to use the proceeds from the sale to pay off the loan. One can hope so: this outcome is the least problematic. However, it is quite possible that he is a fraudster who will try to stall for time. The decision is up to you: either wait until the previous owner pays off the debt and removes the lien, or contact the police with a fraud report and file a lawsuit.

Another situation is if the car was registered, and a few months after the purchase you received a subpoena. Then you will have to prove your integrity as a buyer. To do this, collect the necessary documents:

vehicle passport (preferably original);
DCT (preferably with a clause stating that the car is not pledged);
a certified extract from the register of the notary information system.

If there is a certified extract, and the transaction was completed before July 1, 2014, then the court will remove the lien and hold only the previous owner accountable. If there is no statement or the purchase was made before the amendments to the Civil Code of the Russian Federation came into force, then you will have to give the car to the bank or close the debt instead of the borrower. At the same time, it is necessary to file a counterclaim against him and demand compensation for costs. Either the return of the amount specified in the purchase and sale agreement, or the return of the amount paid for it to repay the credit debt. The second situation is especially difficult: there is no guarantee that the court will oblige the fraudster to return the money.

Is it possible to terminate a purchase and sale agreement?

Selling a pledged car is against the law. Therefore, it is possible to terminate the contract even if it does not contain a clause on the absence of encumbrance. The procedure for terminating a contract is established by Article 452 of the Civil Code of the Russian Federation:

First, you need to invite the other party to terminate the contract.
If the response is negative or not received within 30 days, you can go to court.
In court, it is necessary to prove that the seller did not warn about the encumbrance and that his actions are contrary to the law.
If the court took your side, the contract will be terminated: you will receive the money back (the amount specified in the contract) and will have to return the car.

Where to go for help

If you discover that the purchased car is pledged, then first of all you need to send a pre-trial claim to the seller. It must indicate the desire to terminate the contract (if less than 3 years have passed since its conclusion, this is the statute of limitations). After 30 days or after receiving a refusal, you can file a lawsuit.

You can also write a statement to the police. This can be done at any time after detection of fraud. The previous owner will have to answer in court not only in civil, but also in criminal cases.

Can the court seize a pledged car from the new owner?

Until mid-2014, people who were unlucky enough to buy a mortgaged car were completely unprotected by law. The court always ruled to seize the vehicle in favor of the bank. Now buyers have a chance to defend their right to the purchased car, although to do this they need to get an extract from the register from a notary - not all buyers know about this.

Conclusion

Let's summarize the article:

Before purchasing a car, you must obtain an extract from the register of pledges and have it certified by a licensed notary.
If you still bought a mortgaged car, you can try to break the contract and return the money before the bank tries to repossess the car.
If you received a subpoena, you must prove that you did not know about the encumbrance. Otherwise, you will have to give the car to the bank and additionally sue the seller to receive compensation.