Buying a Viper with a Lien

[pigcorn]

Sorry for the newbie to buying a used car from a private owner question but wondering how this works.

The GTS I am looking at has a lien on it, obviously I want a lien free title but the seller needs my money in order to pay off the loan. How does this work so both myself the buyer and him the seller are happy?

 

[dave6666]

Do it at his bank that is in possession of the title. Pay them there and have them transfer it to you there.

 

[2snakes4us]

What Dave said

 

[V10 PWRD]

I bought the same way. Had all financial work done by bank officers from each bank over the phone after a whole lot of conversation with the owner. I bought the car sight unseen but had another VCA member go meet the owner who was also a VCA member and went over the car with a magnifying glass. You should be fine. Let the bank officers handle it with you sitting in front of them.
Good luck and have fun!

 

[AZTVR]

You need to end up with the title in hand with the lienholder release signed and notarized (in my state, it is done on the back of the title) when you hand over the money, and then drive away with the car and the clear title. The only way to do that is at the offices of the lienholder.

When I was looking, I found a great deal; but, the seller had his loan through a mainly internet bank that is well known; but, had no local office. You could do something like pay the seller his part and wire his lender their part and take possession of the vehicle if the seller will allow that while the lender mails the title, or the lien release. But are they going to mail that to you, or the seller? Either way, you can't transfer title for a while and there exists the possibility of things going bad where you would need a lawyer. Too many cars available to put myself in that position, so I waited for a safer deal.

 

[viperrkh]

In order to cover your six, additionally you should draw up a contract that specifies the terms and conditions for the sale/title transfer. If things go south you have a contract to fall back on to recover your funding.

 

[white out]

At the bank is the best option.

For my blue STi, I had to pick it up over the weekend, out of state, so it wasn't possible. I paid for the car, wrote out a bill of sale & signed by both parties and witnessed, then drove the car home. Within a week the title was mailed to me.
It is kind of risky to do it that way, but the best option if you have to.

Nick

 

[pigcorn]

What do I do if it's halfway across the county and was not planning on flying out to get it, in other words not be present onsite at the bank?

 

[1TONY1]

What do I do if it's halfway across the county and was not planning on flying out to get it, in other words not be present onsite at the bank?

On one that I bought, I talked with his bank and then wired the payoff directly to them and they sent me the title. I knew the car was paid off at that point but the seller still had to ok it after he got a check for the balance (maybe he got the title when released and then sent it) I did pick that car up in person/California and that is when he got his check. I had a good feel for the seller but I could have still possibly been ripped....not taking into consideration that I had a firearm though AND I would have had the car even if no title

If you are not going there....I would highly suggest getting someone else to take possession of the car. A local VCA member or maybe pay a local dealership to hold it for pick up.

PM me the last eight of the VIN and and your e-mail we can at least look at some history/ownership etc.

Be careful...good read...this guy was an experienced dealer: 2001 Viper GTS ACR Yellow FRAUD Oklahoma City, Please read/help! - Viper Alley - Dodge Viper Forum

 

[eliems]

I tried to buy a car with a lien on it but couldn't. In California the bank does not hold the physical Title but the Department Motor Vehicles sends it to the owner after the Bank sends them the release. This takes a couple of weeks.

I was not going to pay the guy's lien off and then wait weeks for him to get the Title and choose to send it or not send it.

I also need the Title to get across the Canadian Border. I spoke with RIV Canada and they said it can't be done.

I guess the only cars we can import are Title in Hand clear of liens.

 

[FrankBarba]

If your serious about the car. Give a deposit to hold. Have the owner pay the car off & then title is in hand....

 

[29OUTLAW]

When I sold my boat I owed about $100,000 on it. Buyer's lending institution made the payoff check out to both me AND the bank. Check was sent directly to the bank that held my loan. Because the check was made out to both of us, the bank couldn't do anything with the check without me being involved and I couldn't do anything with the check without the bank being involved. Once the check cleared, my bank sent his lender the title.

 

[venomous06]

Since I just bought mine with a similar situation, I had to have a lien release otherwise my financing couldn't have gone forward. The owner paid the lien off and sent me a copy of the release so my bank could release the difference I needed for the car along with a copy of the title. Once it was faxed I picked up the money and flew out to inspect my car. It was as described we ran to his bank had the title and bill of sale notarized. I flew back and anxiously awaited the arrival of a reliable transport.

 

[pigcorn]

Thanks, however in a few of the listings above you have the owner pay off the lien first but that is the problem at hand as the owner needs the money from my loan to pay off the lien. Kind of a catch 22 in that I need the loan to pay off his loan and vice versa.

Looks like the check made out to both the lender and the seller may work as long as the DMV allows me to register the car without an updated title

 

[AZTVR]

as long as the DMV allows me to register the car without an updated title

I can't imagine that that scenario would be allowed.

 

[CPPRHD265]

I bought my Viper on fleabay back in 2007. The guy listed the car as having a clear title... It did not, and a local bank had a lein on it. I grilled the guy about it when I found out, but decided to get the car anyway. I had my bank make out two cashiers checks, one to his bank, and one to him for the balance (called his bank to find out what the payout would be for the loan). I meet the guy at his bank & inspected the car there before proceeding. The bank called my bank to verify the cachiers checks, then stamped / signed the title releasing the lein. I had him sign a bill of sale I found on the internet, though it was not needed.

I drove the car back to the DMV near my house, and registered / transfered the title. You will NOT be able to register the car without a title in hand unless your sleeping with someone at the DMV I mailed him his plate after I got my temp one at the DMV.

 

[Lee00blacksilverGTS]

This is really pretty foolproof for the buyer and I have done it several times in instances where the lending institution is halfway across the country, like Chrysler financial and GMAC. Don't forget the lending institutions have to deal with this every day also so they understand.
Get on the phone with the lending institution, explain the circumstances and get a contact there to fed ex the paperwork to. Go to the car (or have someone else do that) do the bill of sale, have it notarized with three copies, have one check for the seller for his proceeds, another check for the balance owed to the lender, proceed with the seller to a fedex/ups office, make out a fed ex envelope addressed to you, the buyer, fold that and enclose it in another fedex envelope addressed to the lender, enclose the check to the lender with the bill of sale and instructions to fed ex the the cleared title back to you the buyer in the prepaid fed ex envelpoe enclosed. Give the seller his portion of the money, take the car and a copy of the bill of sale, call your contact at the lending institution to tell them to expect the envelope. Wait for the title to reach you by return fedex.
Sellers should make sure the checks they are getting are marked withdrawn from the account, a cashiers check can be canceled.
Scam factor is eliminated for seller as he is on the phone with the buyers bank to check funds have been withdrawn.
This really works well when both parties call the original lending institution and the buyers bank on conference calls and buyer(or his rep) and seller are together at the fed ex drop.
You're talking to his bank and he is talking to yours.

 

[AZTVR]

Get on the phone with the lending institution, explain the circumstances and get a contact there to fed ex the paperwork to. Go to the car (or have someone else do that) do the bill of sale, have it notarized with three copies, have one check for the seller for his proceeds, another check for the balance owed to the lender, proceed with the seller to a fedex/ups office, make out a fed ex envelope addressed to you, the buyer, fold that and enclose it in another fedex envelope addressed to the lender, enclose the check to the lender with the bill of sale and instructions to fed ex the the cleared title back to you the buyer in the prepaid fed ex envelpoe enclosed. Give the seller his portion of the money, take the car and a copy of the bill of sale, call your contact at the lending institution to tell them to expect the envelope. Wait for the title to reach you by return fedex.

I don't know if it varies by state; but, I think that in my state, the owner has to sign the title with a notary witness. I haven't tried transferring a Title on a car without that portion on the back signed. How do you handle that part ?

 

[Lee00blacksilverGTS]

Your state is probably like mine in that the car owner holds the title with the lein on it, so the title is signed off by seller and is part of paperwork going back to lender for lender to sign off.