Marc3.4V6

iTrader: (1)

Has anyone bought a car from someone that owned money on the car still? This car I've been trying to look at has a loan/lien on it and I am seeing if I should consider doing this and looking at it. I don't yet know how much he owes, but he just got it but has to move and can't bring it with him, so I'm guessing it's more than 75%. He says it's a simple procedure, same as buying it outright only I'll be paying the bank instead of him. But it seems like there are a lot of extra steps and question marks. I don't know if I pay him any money at all or what. My wife (mostly her money being used) talked with the lein holder on the phone while I was at work to find out what the process was and he was not very clear. Rather than just telling us what are the steps of the process, he gave several scenarios that did not directly answer our questions and it only made my wife more confused on the process. Our issues are not knowing when we get the title, because we only have 10 days to register it with the dmv after the sale, which would be dated on the bill of sale and other documents, so no way around that. Assuming that we don't get the title right away, is it released in his name and he has to sign it over, or mine? If the title is not released on the day of purchase, do we get something from the lien holder that we can take to the dmv for registration? The bank employees double as notaries but only for bank related stuff, so is a notarized contract that states he will sign the title to me as soon as he receives it, since I paid off his loan, enough to cover me?

EOD_JOE

iTrader: (11)

The owner and you should go to the bank where he would pay off the remainder of the debt owed. At this point the bank will give him a notorized lien release which can be used with a bill of sale to register and title the vehicle in your name. There are also other forms which can be found on the California DMV website that may apply.

MSS91Z28

iTrader: (3)

It all depends. Two peices of info needed are what the payoff amount is and what the agreed selling price is. You'll be writing two checks if he owe's less than the selling price, one check to the bank for the amount owed and the other check to him for the difference. If he owes more than the agreed price, he's going to have to write a check to the bank for the difference between the selling price and what's owed. Like stated above they have notorized ways to ensure that you receive the title.

allblacksrt4

iTrader: (3)

You need a dmv transfer form. then there is a title transfer form that needs to be notarized. Please a letter of lien satisfaction from bank. Either way its a risky transaction where the owner could make it hassle if he is the shady type.

Anthony Williams

iTrader: (3)

Don't do it.. What ever is still owed after he has yor money you may be responsible for--Smog, Tags, any Fees to get the car transferd to you etc. And thats just the DMV stuff then you will have to work out details with the real lein holder the bank, and they will want 100% of what is owed and any back fees for late payments, recycling of payments etc. (when a late payment is moved to the back of the loan) You could very well end up paying him and then still getting repo'ed.. Move on too many nice vehicles with a clean title..worse come to worse, see if the car is up for repo, tell them where it is, let them pick it up and buy the car from the bank..lol

MSS91Z28

iTrader: (3)

You guys aren't being very helpful to the original poster. He didn't ask if this was a good idea, he asked how to do it. We all know there are shady people in the world, don't be afraid, just take precautions.

I would try to make arrangements to pay his bank directly, and then they can mail the title directly to you. Also, go to the dmv website and check to see how much the car will be to register, so you dont get hit with unexpected fees when you go to register it.

high impact

iTrader: (5)

^^^^^^excellent advice ^^^^^^

The bank or credit union most likely doesn't have any one set policy - there are variables and that is why it's not "so easy" to explain. Take precautions and realize that these types of transactions may not be simple but they do happen often. The most important precaution should include making sure the payoff happens and how you are going to get a clear title. If the title is at the location of payoff and you pay with cash you should receive it same day. They usually only hold if you give them a check.

allblacksrt4

iTrader: (3)

they cant mail title directy to him because r/o isnt signed. thats why he has to do a reg262 and a titless transfer form and have it notarized. without it notorized its worthless. Always talk to the lender directly and cut them a check for the balance and get a lien satisfaction. Seprate check to owner if there is any to go to him.
Never Give money to the owner for him to pay the balance.
Dmv fees are payed by the new owner registering it so there is nothing there but standard tax, lic and transfer fees like any other auto purchase.