Selling with a lien

[Tngahan]

Has anyone ever tried to sell a camper with a lien? We just never get a chance to use our 2021 Freedom Express but I have never tried to sell something so expensive with a lien. Anyone have any tips?

[chriscowles]

A lien? As in you took out a loan? It's licensed as a road vehicle with a tag. Selling it is just like selling a car. You have to pay off the loan in the process.

[NavyLCDR]

I have. There are two ways to do it, depending on whether the buyer trusts you or not.

1. They give you the entire price for the camper., you give them a Bill of Sale. You pay off the loan. When you get the title from the lienholder (or state DMV) you sign it over to the buyer and deliver it to them. OR

2. You get the difference in the amount between the selling price and the payoff of the loan. You give a Bill of Sale to the buyer and also all the loan information (bank, account number, etc.). They send a copy of the Bill of Sale and the loan payoff to the bank and request that the title be sent to them. they will get the title from the bank, with their lien release on it, they take the title and the bill of sale to the DMV and title it in their name.

The hazard with the #2 option is if the buyer never pays off the loan, it is now you that are stuck with it. You need to have the buyer sign a contract, or you keep the trailer until you get confirmation from the bank that the loan has been paid off.

When I sold my trailer with a loan on it, the loan was at a local bank. They paid me my part of the selling price, and I gave them a completed Bill of Sale that I downloaded from the state DMV. I delivered the trailer to them as promised. Then we both went down to the bank, they paid off the loan and had the title sent to them.

[18LT]

Yup, what Chris said. Depending on the state you live in, you may not have a title, in which case you have to ask your lending institution to contact your state’s DMV to have a paper title printed and sent to the lender.
If you have a title showing the secured party (bank, credit union, etc) you can get the lien released by paying off the loan with other available sources (personal loan, home equity loan, savings account) which will expedite the sale. Otherwise, the buyer pays the financial institution and you get the rest of the selling price.

[Kimber45]

I drove 8 hours to meet a guy 1/2 way. His bank and my bank had talked to ensure funds were good and my lein would be cleared. He wanted my unit because he couldnt get the floor plan on the east coast and was willing to pay and meet 1/2 way. The banks were willing to do the work. Going to come down to comunication and work.

Most folks go to a dealer because of ease but you can get a better price private party.

[Kimber45]

Originally Posted by chriscowles

A lien? As in you took out a loan? It's licensed as a road vehicle with a tag. Selling it is just like selling a car. You have to pay off the loan in the process.

I'm thinking he knows that and he is curious about the process when you dont have a dealer making the calls and doing the leg work. Or dealing with a loan or lein on the other end with the buyer.

It can be done well if both parties have good customer service at there banks.

You should expect about 1/2 the difference between what a dealer would offer for trade vs a dealer reselling.

[3boxerss]

We sold one last year with a lien. We talked to the bank the loan was thru (Huntington) and they said To have the person write their check or cashiers check to Huntington bank and your name. The bank will pay off the loan and send us the check for the difference. You give them a bill of sale. Then when they send you the title you send it to the person that bought it..Our buyers just followed us uptown , since our bank was local, and we both stood at the teller and that way we both knew where the money went.. It took 3 weeks for the bank to mail us the title..

[rowdy boys 3]

Best bet is to sell, with no attachment.

[NMWildcat]

It really doesn't matter if it has a lien or not. I've sold both ways with no problem. I always go through my bank regardless. They can ensure the loan is paid and title is taken care and they ensure that I get my money (buyers method of payment is good).
If the buyer doesn't want to deal with my bank, then they must not want it that bad and I walk away. You have to protect yourself.

[NavyLCDR]

As pointed out by posters above, if the buyer is also financing the purchase, then his bank will actually take care of paying off the previous loan and paying you for the difference.

[Hitdrd]

We recently sold our 5 th wheel and the buyer had the bank contact us and the lienholder. The sellers bank paid off the lien 5 days before the seller was picking it up and 2 days before they released the full amount. I had to give them a bill of sale and a copy of the title signing over the 5 th wheel. It actually was so seamless, I would do it again.
Concersly we bought our new FR3 from a dealer and 2 months later still trying to get our tax check and title because the temporary registration is up.

[D W]

In my state the only entities that can transfer ownership of vehicle that has a lien (encumbrance), is a licensed dealer, or a lending institution that has control over the lien. As for a private sale, a title than has a lien must be cleared and a new title issued before a title transfer can be done. You can not issue a "Bill of Sale" prior to removing the lien from the title.

[jkoenig24]

Check with the LIEN HOLDER. Ask THEM how best you should proceed. Then follow their instructions. It would be a good idea to have the LIEN HOLDER give you, IN WRITING, the EXACT steps THEY want you to follow. Doing it that way will give you a step by step check list you should follow. As long as you follow lien holder's requirements, the sale / transfer should go smoothly.

PS: the "normal" monthly payment you've been making is likely to change for the final month. Depending on the exact date the lien holder processes the transfer, the amount you'll have to pay may be different from the "normal" monthly payment.

[jimmoore13]

Consideration with something as new as 2021. Are you upside down on the loan? If so, you will need to bring cash to the table. Whether or not you are upside down depends on how much of a downpayment you made and how much you have paid down your loan. The current trend in RVs is loans for 12 years or longer, which means you may be upside down for quite a few years before you actually have "equity" in the rig.

[MisterVick]

I've sold and bought with liens on titles. If buying I go to the debtor's bank with them and witness him clearing the title and leave with the title and Lien Release in hand. When selling, I've always managed to clear the lien and get the Lien Release before meeting the buyer.

[Eric H.]

I got the payoff quote from sellers bank along with wire transfer and account info. Wired $52k to lienholder bank. Got a payoff letter from bank and then drove 2 hours to meet, hand over additional cash and pick up trailer. When owner received the title he mailed it to me. It was a huge leep of faith that worked out.

[BlackDog21]

Setting up an escrow and having everything go through that is a safe alternative, but is an additional cost.

[Bhrava]

Originally Posted by BlackDog21

Setting up an escrow and having everything go through that is a safe alternative, but is an additional cost.

This is what I used, the person who wants to use it pays the fees, usually the buyer pays it, roll it into cost. They get the wire transfer and immediately send the payment to the bank, along with all the information required to release the loan.

Depending on your state, if your signature is required on the title to release it, have the title sent to you first, if not, the bank can send the title directly to the buyer.

Depending on the amount of the sale, and your bank policies, if you were to get paid cash, and deposit it into your bank account so you can wire or write a check for the payoff, the bank might put a hold on the funds for up to 10 days or more.

Depositing a big amount of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002.

Escrow gets around this little issue. If the payment is a cashiers check or a bank wire transfer, then it is less likely to be held. When I refinanced, I got a cash out of nearly $80K, bank didn't need to report it since it was a mortgage transaction, but had it been $80K in cash, they would be forced to hold it and report it.

[MOApples]

We bought our rig from an owner who had a loan, and therefore a lien, on it. We took 2 cashier's checks for the amounts she provided to us. One check made to the bank for her loan balance, and one check made to her for the remainder of the selling price.

We met her at her bank, handed her the checks, she handed one to the bank and gave us a bill of sale. A couple of weeks later we received the title from the bank, with the lien released. No problem at all from my viewpoint.

[D W]

Originally Posted by BlackDog21

Setting up an escrow and having everything go through that is a safe alternative, but is an additional cost.

From my standpoint, as a buyer, I would never agree to pay escrow fees on a casual sale of a vehicle so someone can satisfy their lien. The lien is the seller's responsibility.