The owner is currently making car payments. How do I handle this situation since the title is not clear?
2006-10-21 16:51:46 · 8 answers · asked by Adam T 1 in Cars & Transportation ➔ Buying & Selling
This is a very easy situation to deal with, especially if the bank has a local branch. The seller need to get a payoff figure, which is what it will cost to pay off the loan and have the title released on a certain day. He also need to make arrangements with the bank to have the title at the local branch so that it can be picked up when the loan is paid off.
You get a cashiers check from your bank for the payoff, and another one for the difference between the payoff and the purchase price (assuming you are paying more for the car than the loan balance. You and the seller go to the bank together, you pay off the loan. He gets the title and signs it over to you, and he also gets the check for the difference!
If the seller owes more than what you are paying, then he will need to bring the difference, in certified funds of cash, to the bank to do the title transfer!
2006-10-21 17:49:20 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
If the title is in the bank's possession a lien still exists on the vehicle. Here's the way to handle the situation if you decide to purchse the vehicle.
If you are going to pay cash for the vehicle, get a pay-off amount, in writing from the bank. Pay-offs are usually time sensitive and are only good up until a certain point. Advise the bank that you are going to purchase the car and that you would like to come into their office and pay off the note and obtain the title The seller should go with you to the bank, too, since he will have to sign over the title to you at the time of this transaction. If there is an additional amount going to the seller (the agreed upon selling price minus the pay-off) get two certified checks, one made out to the seller and bank for the pay-off and one to just the seller for any difference. When you arrive at the bank, the seller endorses the check made out to the seller and the bank and you hand over the check to the bank to pay off the note. Make sure that they have the title on property on the the day of your appointment since most large banks keep vehicle titles in a central location and not at branch locations. If necessary in your state, a notary at the bank can witness any signatures needed so that you can register the vehicle in your name. Make sure that the bank indicates that all liens on the vehicle are satisfied ( there's usually a place on the title for this to be done).
If you are going to finance the vehicle, your lender can usually handle the transfer of title, but, you will need to sign a power of attorney so they can act in your behalf. Check with your lender, if financing, as to how they receommend handling this situation. Good luck and don't forget to get the vehicle checked over before you purchase the vehicle by a competent mechanic.
2006-10-22 00:55:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First, you and the seller need to agree on price and terms of sell and have all this information listed in a bill of sale or sales contract. Normally, one would give a person 14 days to clear the title and provide the title with signatures and a letter from the lien holder that the title is "clear". If the seller doesn't follow thru on the agreed terms in the contract, then you can return the car to him and receive a full refund of the purchase price.
Now, the way I would do it if you don't trust the seller is, contact the lending institution with the seller present. Find out the payoff amount and IF that is the agreed to price or less than have a certified check made out to the seller AND the bank to payoff the loan. If the seller is upside down on the car, meaning he owes more than it is worth. Then, I would have the seller meet me at the lending institution's local office with the difference and pay the loan off together. Get the seller to sign a sales agreement or sales contract before you throw down the cash.
2006-10-22 01:26:07 · answer #3 · answered by sfcjcl 5 · 0⤊ 0⤋
Go to the bank with the seller and close the deal there. The bank gets their money, he gets the rest if any, and you get clear title.
2006-10-22 00:51:11 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
STAY AWAY!!!If the owner of the car still has the title being held by the bank the owner is likely upside-down on the loan.If you were to take possession of the contract you would just be putting yourself in his position.
2006-10-22 00:38:03 · answer #5 · answered by Aaron D 2 · 0⤊ 2⤋
contact bank to pay off loan or arrange to make payments. make sure this is the only lein on vehicle or have problems later
2006-10-21 23:57:06 · answer #6 · answered by james_a_willis 3 · 0⤊ 0⤋
You can ask www.efbid.com for help. They're the One-Stop Auto Service Co. in Hong Kong. They can ship the car in every country. It's more cheaper and safety.
2006-10-22 05:17:57 · answer #7 · answered by Brown 1 · 0⤊ 1⤋
Also, be sure to get the history of the car before buying. You can google "Auto history" to find a car history website.
2006-10-22 00:00:11 · answer #8 · answered by the shadow knows 3 · 0⤊ 1⤋