Buying from a Private Seller - Title Search and Loan Payoff

[rfaulkner99]

How do you verify a lien, and go about paying off the sellers loan when purchasing from a private seller?

PS: I am paying cash.

[coachjeff1]

I just sold mine last year and the fellow buying mine met me at the Credit union and they provided a lien release letter on the spot.

[rfaulkner99]

Just to follow up on this, I spoke to my bank. It just so happens that the seller's loan is at the same major bank. Unfortunately they said they do everything electronically, and do not provide a release of lien letter (she said they send it to the DMV). So I will have to wait for the title to be ready at the DMV, which will still be in the seller's name, and then he will have to sign it over to me.

I asked about how to prove that I had paid for the vehicle and she said they could notarize a bill of sale for us.

I guess the bill of sale, and possession of the RV should be enough to prove my purchase should things go south, but I still wish the bank would provide more.

[LegacyFB38]

Possession is 9/10ths of the law. That and the notarized BOS should protect you well. And the bank is participating in the transaction. I think you have the bases covered.

[clarkbre]

Why not contact the DMV to find out if after transferring funds and getting a notarized Bill of Sale, you and the seller could report the sale to the state and put the trailer in your name?

In WA, you can report the sale (as a seller, I do this ASAP after the sale) to show that the vehicle was no longer mine. Then, if the new owner gets in an accident, commits a crime, etc., I'm covered that I reported the sale and basically forfeited ownership.

[FarGra]

Just did this in Florida with electronic lien and had a 21 hold by bank even though they had cash payoff. Buyer can get a temporary tag If bank sends a letter with original signature and specific wording then both Seller and Buyer needed to go to Registration Tag Office for 30 day temporary tag. Then Seller request a paper title which they can then sign over to Buyer allowing them to purchase regular plate. Took about 30 days Total before all was cleared. Both parties carried insurance coverage until paper title was handed over. More detailed with owner purchase but buyer got a good deal in the end.

[Oaklevel]

You need to check with your state as each is different. But the bill of sale should cover you.

It is a pain buying any vehicle from a private party when the bank holds the title.

Good Luck.

[comfun1]

Very interesting discussion, I am wondering what would happen if you were not paying cash? Would a lending institution be willing to make a loan under these circumstances?

[stellaandspike]

Just sold my Lil' Clipper and it was a royal pain.
Tried to get a 5 or 10 day close out figure from my bank so that the buyer's credit union could pay them directly. They gave a number but it changed every day. Buyer's credit union finally gave up and, after we executed a bill of sale, gave me a check for the sale amount. I paid the full amount on line and it took from 3/26 until 4/13 to get the title and release of lien letter. We both kept insurance on the TT.
Now I have a question...we recently registered the TT. Can I transfer that registration to my new TT (arriving 5/14)? Would mean taking the plates off and buyer would have to have their own to get it home, correct?
Thanks in advance.

[Oaklevel]

Originally Posted by stellaandspike

Just sold my Lil' Clipper and it was a royal pain.
Tried to get a 5 or 10 day close out figure from my bank so that the buyer's credit union could pay them directly. They gave a number but it changed every day. Buyer's credit union finally gave up and, after we executed a bill of sale, gave me a check for the sale amount. I paid the full amount on line and it took from 3/26 until 4/13 to get the title and release of lien letter. We both kept insurance on the TT.
Now I have a question...we recently registered the TT. Can I transfer that registration to my new TT (arriving 5/14)? Would mean taking the plates off and buyer would have to have their own to get it home, correct?
Thanks in advance.

Always recommended do not let your plates go with the buyer. They need provide tags. I have heard of cases that the buyer is still using the plates years later.

ou should be able to transfer your plates to your new trailer but check your state. In Virginia you can transfer your new plates to your new trailer unless they are permanent then you can not.

[Oaklevel]

Originally Posted by comfun1

Very interesting discussion, I am wondering what would happen if you were not paying cash? Would a lending institution be willing to make a loan under these circumstances?

Yes they usually will loan with no problem. I have done it numerous times with cars and trailers with no issues from my lender.

[stellaandspike]

Thanks, Oaklevel. That is what I thought.

[rfaulkner99]

Our entire transaction was handled by BOA, they both held the lien and that was where my account was with the funds.

Even though they do everything electronically (including an electronic title) they said it would take 3-5 business days for the lien to show as paid off at which time they would mail the lien satisfaction letter to the seller - he is going to send me a copy.

The electronic title would take up to 30 days to clear before the seller can transfer to me.

For paperwork I have a receipt for the certified check made out to BOA, a receipt for the total combined payment, and a notarized Bill of Sale.

I also asked the seller if I could keep his tag until we transferred the title and he agreed.

[Jmkjr72]

Originally Posted by stellaandspike

Just sold my Lil' Clipper and it was a royal pain.
Tried to get a 5 or 10 day close out figure from my bank so that the buyer's credit union could pay them directly. They gave a number but it changed every day. Buyer's credit union finally gave up and, after we executed a bill of sale, gave me a check for the sale amount. I paid the full amount on line and it took from 3/26 until 4/13 to get the title and release of lien letter. We both kept insurance on the TT.
Now I have a question...we recently registered the TT. Can I transfer that registration to my new TT (arriving 5/14)? Would mean taking the plates off and buyer would have to have their own to get it home, correct?
Thanks in advance.

Tags depends upon the states laws. Here in Wisconsin a trailers tag stays with the trailer a cars tag stays with the owner a motorcycle tag stays with the owner yet a moped tag stays with the moped

[Iwannacamp]

The laws change with state and financial institution rules. My experience is you pay the lending institution they release the title to the tag office. If there is an overpayment they issue funds to the seller.

I would call the bank and the tag office and ask. I am sure it’s simple.