Buying a car while bank has title?

Question

I am buying a car from a guy. He owes $5K to his bank and I am paying $6K. Bank has title. In CA.
What do I need to make sure I get the title?

Is a bill of sale enough? How do I make sure the guy pays the remainder of the loan to the bank and I get title?

Please specify forms and what not if you know them.

Thanks in adavance.

Answer 1

Need to use a title transfer company to act as an impartial third party to ensure money and paperwork flow in the right order. Seller usually pays for the service, which isn't much. The title company will hold the cash while transferring the title in the buyer's name. They will also check to see if there are other liens against the car.

Answer 2

Don't buy the car until he has paid it off, and has the title in his possession. Yes, a signed and notorized bill of sale will help if you don't get the title from him, but if he is unwilling to actually give it to you after YOU paid the car off, you will probably have to take him to court. And the bank will NOT send you the title because at that point you don't own the vehcle. If he wants to sell it that bad, tell him to get another loan to pay it off. And not to use the car as collateral. (otherwise that bank will get the title!!) Or get it from a relative to pay off the car. But don't get involved with this car until you see a clear title. It may seem like a bargin, but if he doesn't have clear title to the vehicle, it isn't. I am not from California, but have done motor vehicle work in many states, and I don't know what forms you will need. But basic common sense and logic say you can't sell what you don't own. He does not own this car, the bank does until he pays it off. And you won't own it until he signs the title over to you after it is paid off. Stay away from this "deal" if you don't want a lot of trouble, hassle and court dates to get the title.
If you decide to do it anyway....well there is a bridge that goes from New Jersey to New York I can sell you real cheap!!! Send me 6000.00 and I will get you a title to it!!!

Answer 3

You "very own" the motor vehicle and you're answerable for it. The financial company has a "lien" on it which potential you cant sell it without paying them off. in case you kill somebody which includes your motor vehicle, the financial company won't be able to be sued for being the lien holder. the owner & motive force can. the motor vehicle isn't registered interior the banks call, its registered interior the shoppers call. sellers have no interest while they get their money from the financial company. uncommon exceptions shop on with to a bad credit clientele who finance with credit attractiveness. sometimes sellers could have some form of residual interest on your destiny money after the lender gets returned each thing they strengthen. (yet not with classic lenders)

Answer 4

THIS IS NEVER A GOOD IDEA! YOU COULD 4500 ON THIS VEHICLE AND THE 1ST OWNER STILL HAS LEGAL RIGHT TO THE CAR. YOU MAY HAVE A CIVIL CLAIM TO VEHICLE BUT WOULD NEED TO GO TO COURT. ALSO THE BANK MAY REPO THE CAR IF ORIGINAL BUYER IS NO LONGER IN POSSESSION. ON THE BACK OF BANK CONTRACT IT STIPULATES NO SUBLEASING OF VEHICLE. THIS COULD BE A MESS. ALSO THERE ARE ISSUES REGARDING NEW TAGS AND PROOF OF INSURANCE