Racer's Lounge - What is involved in selling a car with a lein on it?

What is involved in selling a car with a lein on it, how does one go about that? What is involved, what paperwork is involved? Do you just issue a bill of sale until the title comes back? How does the buyer cover themselves? Can you go somewhere and settle it up there, like a bank or something? What is the whole process, start to finish?

Shawn

You find a buyer, get the money, go to the lein holder, pay it off, get the title, do the title work, done.

That's what I did almost to a t. Or, gather the cash, pay the loan, get the title, find a buyer, work out a cash transaction, transfer registration, work out insurance, walk away with a smile on your face.

what you need to do is call the bank with the lien and ask them if you pay it off in person, will they give you the physical title right then and there...Some banks don't keep titles inside the bank, or some have more than one branch and you need to go to the right branch to pay the car off so you can get the title that minute you pay it off. Otherwise, could take a few weeks to see it in the mail....LOL....asswipes they are sometimes.

That's what I did almost to a t. Or, gather the cash, pay the loan, get the title, find a buyer, work out a cash transaction, transfer registration, work out insurance, walk away with a smile on your face.

Eitherway, you've got to give the lending institution the money before you'll ever see the title.

As was mentioned, some places don't keep their titles on hand, so you might want to look into that because some buyers don't like to deal with ordeals like that.

Find out if the lienholder actually holds the title or if the "owner" of the vehicle does. Then you're gonna need to find out what your 10 day payoff address / account is. Basically, either party will mail a check to that account (obsolving the buyer/seller of any issues regarind who got who's money). If there's any funds in excess of the liened amount, than that could be remitted straight to the seller. If the person buying from you is getting financing, have their financing institution handel it.

damn rain.

OK, caled the lein holder today, there is no place local that I/we can go to, I have to mail them a check, and 10 days later they release and send the title to me. My question is this, how does the buyer cover him/her self? They (or their bank) write me or HSBC (my car's leinholder) a check, I mail it to HSBC, ten days later I have the title and send/give it to the buyer. What do I/we do in the meantime, do I issue them a bill of sale and let them take the car or do they have to wait until the title is in hand to take delivery (which I would think wouldn't be feasible, who wants to pay for a car and not get it)? How is the buyer covered (I would guess by the bill of sale)?

Or, can we go to their bank if they are financing the car, and just let the two banks work it out?

Thanks, Shawn

OK, caled the lein holder today, there is no place local that I/we can go to, I have to mail them a check, and 10 days later they release and send the title to me. My question is this, how does the buyer cover him/her self? They (or their bank) write me or HSBC (my car's leinholder) a check, I mail it to HSBC, ten days later I have the title and send/give it to the buyer. What do I/we do in the meantime, do I issue them a bill of sale and let them take the car or do they have to wait until the title is in hand to take delivery (which I would think wouldn't be feasible, who wants to pay for a car and not get it)? How is the buyer covered (I would guess by the bill of sale)?

Or, can we go to their bank if they are financing the car, and just let the two banks work it out?

Thanks, Shawn

If your buyer is getting a loan to purchase your car, their lender can call your lien holder and they will take care of everything....its about communication between banks when that happens.

Let the banks hash that one out. Some banks get all weird with that, but make them work for you - they'll do it if they want your money bad enough.