Buying a vehicle that has a lien

B

buzzard86

Pre-takeoff checklist
Joined
Oct 5, 2009
Messages
266
Location
Warrington, PA
Display Name
Display name:
Jim R
I need advice on buying a private sale vehicle that has a lien. I've bought and sold dozens over the years but always had a clear title.

Looking at a newer travel trailer. Owners financed the trailer and still have a balance. I don't know exactly who hold the lien but I don't think they are local (as in, we can't go to the local bank and clear the lien with my payment).

How are deals like this usually handled? Do I pay with a bank check and get of bill of sale to prove ownership while the lien paperwork is processed? Can I register and insure said vehicle without possession of title?

Any thoughts/advice on this? Thanks.

Jim
 
Had that problem buying a glider. FAA paperwork showed two or three liens over the years as they glider changed owners, with clearances or release of lien for all but the last one. It was not filed or not filed correctly, and it was many years old.

I was able to research the bank, after a few bank mergers. Called, gave them all the information I had and the problem. They found it in their archives and promptly filed a proper release with the FAA. When the FAA confirmed to me they had it. We bought the glider.

As a buyer, I wanted to be in control of the process and not rely on an aged seller. I would have to live with the results, and I had control of any delays in purchasing. The seller had no idea of the uncleared lien. It had occurred before he bought it.
 
Looks like solved with Adam.

For general consumption - it may be a big fat nothing but it is going to hamper your re-sale. In contract to BTIZ's quck and easy experience, I had one where a client was selling his airplane and a lien he knew he had paid off hadn't been cleared. The bank merger/acquisition/asset sale situation was complicated by a problem the original lender caused and it took a little more wrangling that it should have to clear it.
 
midlifeflyer said:
Looks like solved with Adam.

For general consumption - it may be a big fat nothing but it is going to hamper your re-sale. In contract to BTIZ's quck and easy experience, I had one where a client was selling his airplane and a lien he knew he had paid off hadn't been cleared. The bank merger/acquisition/asset sale situation was complicated by a problem the original lender caused and it took a little more wrangling that it should have to clear it.
Click to expand...
I just went through this with a vehicle I wanted to sell. Apparently, the bank holding the title never cleared it with the DMV. If you pay off a loan, it is up to you to ensure you get the title. The bank will request some dollar amount to "re-issue" the release.
'TARDS! I hope I never have to deal with Bank of America again. Foot dragging is not enough of a description for the MONTHS they took.
 
You must log in or register to reply here.
Back
Top