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Defined as: Acquiring a New Jersey title in the name of a lienholder or dealership that's on for recourse when the owner of the vehicle has defaulted on a security agreement.
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Stipulations:
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- Upon seizure of a vehicle the secured party must immediately file an ISM/SS-55 Notice of Seizure form with NJ MVC. Address follows:
Information and Systems Management
Special Services Section
PO Box 17
Trenton, NJ 08666-0017
- At time of filing and prior to sale, a Notice of Sale letter must be sent to the owner/debtor by certified mail: return receipt requested. Length of notice is defined by finance contract, after which the vehicle may be publicly or privately sold. Only then may the secured party apply for a repossession title.
- If a NJ dealership is on for 'recourse' or 'repurchase' the ISM/SS-57 Application for Repossession Title form must include the dealership's completed Sales Tax Satisfied Stamp.
- NJ repossession titles are not issued if the titling party is an out-of-state lienholder, resident or dealership. They must apply to their home state for titling. The rule is linked to the NJ MVC stipulation that a title may only be issued when a NJ owner or lienholder has an interest in the vehicle. Determination is not based on the origin of the source document, but on the interest of the newly titled owner of the repossessed vehicle. To clarify; any title, NJ or out-of-state, being repossessed by a NJ lienholder can be processed by NJ MVC; Any title, NJ or out-of-state, being repossessed and titled to an out-of-state owner cannot be processed by NJ MVC.
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Required Paperwork
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- Copy of the Notice of Sale letter.
- ISM/SS-57 Application for Repossession Title form. If the original title isn't available, the affidavit statement at the bottom of the ISM/SS-57 must be signed.
- LS-240 NJ Sales Tax card (Exemption 3) if buyer is someone other than a NJ dealership.
- Original title (whenever available).
- Certified mail receipt or the returned Notice of Sale letter if undeliverable.
- Copy of the finance contract indicating year, make, VIN and signature of debtor.
- ISM/SS-7 Application for Certificate of NJ Title if the source document is from another state.
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| Below is a checklist related to repossession title following a security default, as well as a notice of sale letter template. Please contact Title Services at (609) 530-2808 or titles@njcar.org to request the appropriate forms and address any questions. |
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| Checklist for Repossession Title Issuance Following Security Default |
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| Notice of Sale Template Letters |
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