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BrianM
03-11-2008, 11:21 PM
I used to sell cars myself and have sold and bought a few used cars private party but have always had the title in hand. I am helping my brother in law buy a used car from a private seller. The car is currently financed which means the bank has the title. The guy can't pay off the car until he has the cash from the sale but my BIL obviously can't title and register the car in his name until he has the released title in hand. So how would you handle this deal to keep yourself protected and have the seller be able to do the deal as well? For what it is worth the seller seems very honest, married clean cut etc so I 'trust' him as much as I would anyone in this circumstance but still want to make sure everything is on the up and up and everyone is protected. How do I proceed?

fintek9
03-11-2008, 11:26 PM
Have the seller go to the bank and or title office and transfer papers together with you.

BrianM
03-11-2008, 11:30 PM
Have the seller go to the bank and or title office and transfer papers together with you.
That is what I was thinking but that still will not get the title in my hand immediately with the cash but at least I would have a letter from the bank showing that the loan was paid in full along with a notarized bill of sale.

rholmes
03-11-2008, 11:30 PM
have the amount of the payoff made in a cashier's check or money order made to the lien holder, not the seller. Any excess over the payoff can be made in check or cash to seller. Have bill of sale that is signed and notorized that states title will be mailed to to owner within 30 days. That is what we did when I sold my jeep that I still owed a couple grand on when I sold it. Worked well.

BrianM
03-11-2008, 11:32 PM
have the amount of the payoff made in a cashier's check or money order made to the lien holder, not the seller. Any excess over the payoff can be made in check or cash to seller. Have bill of sale that is signed and notorized that states title will be mailed to to owner within 30 days. That is what we did when I sold my jeep that I still owed a couple grand on when I sold it. Worked well.

That is so simple yet I hadn't even thought of it. Good idea.

stuartmcnair
03-11-2008, 11:33 PM
have the amount of the payoff made in a cashier's check or money order made to the lien holder, not the seller. Any excess over the payoff can be made in check or cash to seller. Have bill of sale that is signed and notorized that states title will be mailed to to owner within 30 days. That is what we did when I sold my jeep that I still owed a couple grand on when I sold it. Worked well.

that is exactly what I would do...always make the payoff directly to the finance company so the car is free and clear or all liens. Do not pay cash for any of it. Use certified funds where the checks are made out by the financial institution you are using so they have that on record.

T Scott
03-11-2008, 11:35 PM
Have the seller go to the bank and or title office and transfer papers together with you.

EDIT: Damn you guys are quick !!


I agree...if the bank is local, go there with the seller and pay off the loan together. Better yet, have your BIL make the payoff to the bank. This ensures that the funds given are used for their intended purpose. Then follow it up with a strong Bill of Sale stating balance paid in full and title to be forwarded once rec'd from bank, etc. Trust your gut on this one.

BrianM
03-11-2008, 11:36 PM
I guess I can call his bank with the VIN to get / verify the payoff amount. Thanks guys I knew I would get good advice here.

uawaterskier
03-12-2008, 02:31 AM
hope it all works out for. If you have any more questions I can ask my dad. I know he just sold a jeep that he still owed on so he could probably tell you what happend.

TMCNo1
03-12-2008, 07:25 AM
Get everybody at the party real drunk and you may be able to buy it a whole lot cheaper before they sober up!

milkmania
03-12-2008, 08:40 AM
In Oklahoma.....FWIW

The seller/owner has the title and a copy of the lien form is attached to it. (see edit below)

We take the title to a notary public, sign it, she stamps it and signs it.
I hand over money... cash, check, cashier's check, etc
he hands over notarized bill of sale and keys.
I have 30 days to register vehicle in my name

we shake hands, kiss or whatever, and walk away.



If we used the bank for the purchase, they do some things where they get the title, attach a new lien form, then mail it to us. That's the reason for the 30 day day grace period. The bank is responsible to get the liened title to you. If they do not, they pay the late penalty from the tag office. (been there, done that):rolleyes:


oh, I forgot..... The bank attaches the lien form, mails it to me, I take it all to tag agency, and they take the signed title and lien form.
They send back the new title with lien holder typed onto the title. But it is registered in my name

BrianM
03-12-2008, 10:07 AM
Louisiana is a Title Holding State whcih means that the bank keep posession of the title if they have a lien. So it works different than it does in Oaklahoma. The bank with the title on it is local so I am going to give them a call this morning to see if the transaction is done at the bank if we are able to get the title then and there.

Workin' 4 Toys
03-12-2008, 10:10 AM
Brian,
I sold a vehicle with a lien. I contacted the lienholder, and located the title. The buyer and myself went to that branch and transfered the remaining funds owed to the bank, I walked out with the remainder of the cash he walked out with the title.
We then went and transfered the registration.

BrianM
03-12-2008, 11:58 AM
Thanks again guys. Talked to the bank this morning along with the seller. The transaction is going to take place at the bank branch and my BIL will walk away with the title.

Upper Michigan Prostar190
03-12-2008, 12:24 PM
Just cuz the guy is clean cut dont mean crap. that gov that was laying hookers was clean cut too and most people would have trusted him. dont trust a clean cut looking person, they can be a wolf in sheeps clothing.

I personally like dealing with scumbags. at least I know what to expect.

Now, BrianM, the solutin is very easy. have your friend make the loan check out to his bank for the payoff amount of the loan, and the difference to the seller to equal the "purchase price". then go to HIS bank, and issue the check to the bank. they will sign off the lien on the title and give it to him, then he can go get it titled.

work work work work.

milkmania
03-12-2008, 12:39 PM
Louisiana is a Title Holding State whcih means that the bank keep posession of the title if they have a lien. So it works different than it does in Oaklahoma. The bank with the title on it is local so I am going to give them a call this morning to see if the transaction is done at the bank if we are able to get the title then and there.

man, I really like this internet machine.....
learn something new everyday;)

bcampbe7
03-12-2008, 12:43 PM
... have your friend make the loan check out to his bank for the payoff amount of the loan, and the difference to the seller to equal the "purchase price". then go to HIS bank, and issue the check to the bank. they will sign off the lien on the title and give it to him, then he can go get it titled.

work work work work.

Is there an echo in hear? Do you not read post form start to finish??? :D

Upper Michigan Prostar190
03-12-2008, 12:45 PM
Is there an echo in hear? Do you not read post form start to finish??? :D

Well, mine is the only post that matters on this thread anyway. :D ;)

BrianM
03-12-2008, 01:30 PM
man, I really like this internet machine.....
learn something new everyday;)
Were you making fun of my typo when spelling Oklahoma? :rolleyes:

milkmania
03-12-2008, 01:50 PM
Were you making fun of my typo when spelling Oklahoma? :rolleyes:
:purplaugh

edit:
hey, if I lived in Cairo, Egypt and went out in the country, would I be in BFA?