switching salvage title to clear title

It's title washing when someone in California tranfers the title to another state that will clear it, then brings it back to California and tries to retitle it here as clean. I would think this is how the felony thing would come down on someone the hardest.

Another problem are states that clear the titles of insurance totals when the dealers there have them fixed, and then they sell them on a national forum like Ebay or classifed websites. Some of those cars end up sold to California residents without being disclosed as once being salvaged. That's also considered title washing here in California.

Granted, the rules are different in other states, but that's how it is here. I've heard that Texas will clear them and this is where a lot of the cars had come from that started all the drama that led up to the legislation.

Now what I'm curious about is the inocent buying and selling of classics that takes place in our modern day market. I'm sure a good percentage of them have salvage titles, but are rare enough that potential buyers don't care.

lets say a guy is selling a car in California on Ebay and it's fully disclosed that it is a salvage. Some guy that lives in a state that will clear a title buys it not worrying about the salvage because he knows he can clear it. To him, there is nothing wrong with this practice because it's perfectly legal in his state

Then after he grows tired of the car, he decides to sell and ends up finding a buyer right back where it started in Califonia. He doesn't disclose it was once a salvage because he inocently figures it's a good clear title. He's not being devisive and trying to cover something up, he's just selling a car he thinks has a clear title because his state says so.

The new buyer in California then goes to the DMV for a title and the guy behind the counter drops the bomb that it was a salvage that has been 'title washed' and it's a felony!

Now you end up with three people being dragged into court. The original seller covered his butt, but he still has to go through all the hassle. The first buyer/second seller is going to be raked through the coals, but in his state he did nothing illegal. The latest buyer just wanted a cool car and now he's dealing with a nightmare and wants restitution. Everybody loses and nobody was trying to do anything wrong.

What I'm getting at is, there should be some kind of federal position on this. That, or there should be some kind of common ground that all states will recognize what has been done legally in other states. If every state has it's own unbending position and they conflict wildly, there is a big potential for corrupt people to profit, and inocent people to be prosecuted.

I would only say to anyone looking to 'clear' a title to think about it long term. If you're doing it to sell a car, you are probably setting yourself up for trouble. If it's a car you plan to keep forever, or you know you will disclose about when you decide to sell, then it shouldn't be a problem if it's within the laws of your state.