BUYING A CAR WITH A LIEN AND OUT OF STATE/HELP

[NOKA72]

hello guys...can anyone tell me the ins and outs of buying a car that has a lien on it. im sure it can be a lot of trouble. no? any help would be great. thanks vinny

 

[BARRACUDA1968]

First thing is get a bill of sale from the seller. Signed and dated stating there is a payoff on the vehicle. Make sure the amount of the payoff is stated and to what lender (bank) If you are paying say $10,000 for the car and they owe $7000. You pay them $3000 and the bank the balance of $7000 directly. Do not give the entire amount to the seller. Put all this in writing and also state in writing that the seller is obligated to provide you with a clear title once the payoff is made if the lender (bank) holds the title in that state. Some states are different on this issue. In Iowa the lien is perfected through the courthouse and the title goes to the lender (bank). Once the payoff is made the lender will send the title to the seller. The seller then signs off on the title and gives it to you. You have to trust them on this but if you have a bill of sale then you have a contract and shouldn't have anything to worry about. Just put everything in writing.

 

[John Larkin]

Go with the seller to the financial institution and do the transaction there in person. The bank/credit union/etc. can sign off the title lien in person and hand it to you to take to the DMV to put in your name. They do it all the time for dealers; individuals should expect the same service.

 

[BARRACUDA1968]

Go with the seller to the financial institution and do the transaction there in person. The bank/credit union/etc. can sign off the title lien in person and hand it to you to take to the DMV to put in your name. They do it all the time for dealers; individuals should expect the same service.

That's excellent advice! Hopefully the bank is local to the seller so you can go there.

 

[charlief1]

If your credit is good you could assume the loan and pay the seller the difference of pay off VS total price. Pay on it for a short time and then pay it off. It would also give your credit a boost. This will require you to go through the finance company but it may be easier to do.

 

[GNBRETT]

Find another vehicle..... unless ur going directly to the bank with the seller and the bank actually holds the title I wudnt bother. too many scammers out there these days. shit, my buddy got beat last year for $8,000 on a phantom Paypal site. looked exactly like the Paypal site. and this dude is sorta a scammer himself and even he got scammed.

are u going out to see the car? buying sight unseen is dumb! ask me how I know.....

 

[NOKA72]

Thanks guys. I told him to see if he can pay and clear the lien. Then let's try when he has a clear title. I know for sure I am very afraid of doing any deal when you would send money or any thing of the sort.