Filing A claim on a dealers bond

[chudean]

I purchased a vehicle from a used car dealer who went out of busines without submitting transfer of title, sales tax, or registration fees to the DMV. I also have subsequently found out that their is a previous lein holder on the vehicle. The DMV is requiring that I post a surety bond to get the title and has suggested I file a claim against the dealers bond. I have contacted the dealers bond company. What can I expect to happen now and how can I be assured to be repaid for my losses?

[Admin]

The bond they suggested you obtain is called a lost title bond, one of the few bonds we don't write. It will allow you to obtain a new title for the vehicle.

As for filing a claim on the dealers bond, the state actually must do that. They are the obligee on the bond so they would be filing the claim. The surety will not listen to you as an individual since the bond does not guarantee anything to you. Here's the good news, the state requires the bond in order to protect the public. So if they file a claim and get paid by the surety, it will help to cover losses incurred.