[ducatidoc]

i recognize this might be more of a general question, but find the environment welcoming here and since it is a sc im buying i thought id post here.

i found a great used sc for sale at fair price. only issue is the owner still owes money to the bank on the bike. how does this affect the transfer of title? i have heard if i pay him and he doesnt pay the bank then the bankman cometh and take my shiny sc away. this true?

i was thinking about going with him directly to the bank, having him pay it off right there, and then taking the title and lien release letter with me back to the secretary of state for my new title. compounding matters, we are in different states.

again, any advice here would be great. thanks.

 

[mpsalm]

The few times I have sold a vehicle I've taken care of the lien prior to sale then included the letter from the bank with the title. I would make out 2 cheques. One to the bank holding the lien and one to him. Go to the lienholder and take care of it with them and the seller at the same time. Then you should be fine. Certainly complicates things but that's not your fault so the seller should be willing to help you complete the transaction.

 

[ducatidoc]

im bringing cash to the sale.

problem is, only time we can transact is during the evening and its hard to coordinate given the long distance between us.

i had considered maybe having him buy cashiers checks made out to the lien holder at the time of sale using my cash payment. my line of logic is that this way they are non-refundable to him and thus would definitely go to the lien holder (and no where else).

this is my first foray with this issue and hence my lack of knowledge here... just trying to avoid getting screwed.

 

[DGJ]

that's a good point.

I have been in your seller's shoes when I sold my harley and the buyer basically trusted me, but honestly it would have NEVER occurred to me to do something like this until I just read this post... the question didn't even come up. I told him I would send the title as soon as I received it from the bank and that was good enough for him... but if you do a bill of sale from the DMV, (which you have to do anyway) doesn't that count for something?

tough call. what about writing a check to the bank and the balance to him?

 

[Greg_S]

Pay the entire amount of the purchase to the bank and they will cut him a check for whats he's due. talk to the loan officer at the bank about how the title will be transfered.

Also confirm with the bank he doesn't owe more than the purchase price.

 

[MajorSoftie]

Yeah, I've done it once (as a buyer) and I paid the lien directly at his bank. When that's not practical, you're taking your life in his hands.

It could work out fine, but it could just as easily turn out terrible. He doesn't own that bike, the bank does.

 

[K1W1]

Yeah, I've done it once (as a buyer) and I paid the lien directly at his bank. When that's not practical, you're taking your life in his hands.

I did the same but with a car. The sellers finance company had the title and turned it over to me on the spot.

It could work out fine, but it could just as easily turn out terrible. He doesn't own that bike, the bank does.

I agree - it all depends on how much you trust the seller. You are risking either (1) a huge headache trying to get the title if you only have a bill or sale or (2) no cash and no SC!

 

[bassphreek]

pay the bank and let them pay him