Buying a Vehicle with a Lien

[Levey]

So I found a good deal on a 2011 ZX6R. The guy wants payoff, which is way under book value. His loan is through Capital One. If I make the cashier's check payable to Capital One, the only way I see this going south is him not getting the title to me. Anybody ever buy something from an individual that had a lien?

[Ken]

I'm sure there is some paperwork you can write up. Or, have him give you the keys to it while the payment is processed but maintain possession of the actual vehicle, kind of a half assed fix but I feel like it could keep you both honest.

[Sully]

There is a way for insurance companies to do this that guarantees they get the title. I was told it should be the same for an individual because there is no special paperwork that an individual can't do bug navy federal wouldn't (at least the teller we went to) do it for an individual. I went to the bank with the guy for the s2k and paid off his loan with him. It was still up to him to call to get the title released though. I forget what the process is but can ask if you're interested in trying it.

[Levey]

Well I would take the bike with me when I left and just go back for the title when Capital One mails it. I wish there was a Capital One branch near him, but there isn't. I will make an assessment on how sketchy or not sketchy the dude is when I go look Saturday. If I do it, I will draft a bill of sale with some detailed writing. I will ask to get Capital One on the phone to verify there is a title that matches the VIN with the dude's name on it to make sure it isn't stolen.

[Sully]

Most banks don't have the titles. The way I ended up doing it was to pay the bank for the amount of the loan, pay him the rest of the money, got a notarized power of attorney and the bill of sale was notarized while at the bank to i believe. Then the bank calls their company and says the vehicle is paid for. And then the guy had to call to tell them he wanted it released to dmv instead of being mailed to him. (This was the fastest way to get the title), then I went to the dmv with the power of attorney and got them to print the title.

This is not the guaranteed way i mentioned earlier but it was as close as navy federal would get. Luckily the guy was helpful in getting the title released and willingness to go to his bank with me to handle all the transactions

[HAULN-SS]

He can have the address change d where the title goes upon payoff. Have him do that in front of you, pay it off in a branch and you should be good to go

[RawrImAMonster]

The way I've done it in the past is to have the person request that their title is transferred to the bank the day that I'm planning on paying it off. They usually don't keep them on hand, but this way they will have it ready once it is paid off.

[Levey]

The inability to pay off the lien at the bank that holds it makes this a little more tricky. As long as I can speak with Capital One to discuss the details, should be fine.
I can't get the bank to ship the title to me directly, because he still has to sign it.

[.RJ]

Most banks don't have the titles. The way I ended up doing it was to pay the bank for the amount of the loan, pay him the rest of the money, got a notarized power of attorney and the bill of sale was notarized while at the bank to i believe. Then the bank calls their company and says the vehicle is paid for. And then the guy had to call to tell them he wanted it released to dmv instead of being mailed to him. (This was the fastest way to get the title), then I went to the dmv with the power of attorney and got them to print the title.

This is more or less the only way to do it. No bank will ever have a title anymore - its all electronic at the DMV. Put everything in the bill of sale, including payoff amounts, dates, logistics, and get it notarized. If the bank is local and the car/bike is in the same state its fairly easy if you dont mind a little legwork of going between the bank & the DMV.

If its not local, then you do the same deal with everything in the bill of sale, pay for the car and drive it home with a trip permit and wait for the seller to mail you the title.

[Levey]

Not sure why I didn't think of this earlier. What if we called Capital One and had the entire loan transferred to my name?

[JPolen01]

What if we called Capital One and had the entire loan transferred to my name?

This sounds like an idea where 100% of things go smoothly and everyone ends up happy.









Not

[HAULN-SS]

I think you would have to apply and get approved for the loan for that to work

[Levey]

Then it's settled. I will go to my bank with the seller and the bike, have a bill of sale and third party title release signed by both of us and notarized, get a cashier's check for the lien amount made payable to Capital One (which I will confirm with Capital One with the seller on the phone sitting next to me), then drop the check, and third party third party title release in the mail and ride off into the sunset off of public highways since the bike won't be registered yet...

[Levey]

Bought it. We'll see how the title game goes. Luckily I know where he lives and have a power of attorney form with any necessary info. The seller seems to be a normal human that will continue to communicate with me if the title gets released to him instead of me if my collection of documents I mailed with the check aren't effective. At least I have the bike...

[Levey]

Got a text from the guy from whom I bought the bike today. He was notified today the title is on the way to him already. I know I sent in the correct paperwork to release it to me, so I am thinking whoever processed the transaction at Capital One was unfamiliar with the third party title release process, or was suffering from holiday laziness.

I am thinking I could still go to the DMV with the power of attorney papers I have and get the title printed there, but at this point might just pick it up from the guy whenever it arrives.

If the seller was the least bit sketchy, I would not have gone through with the whole thing.

[Sully]

I'm not sure what the process is exactly, but I had to wait for the title to be released to my dmv. Like I went there after the lien holders called the po and said his title was released but they didn't have it on record. Had to go back a couple hours later and then it was there. Without the lien holder notifying dmv, I'm not sure you can get it printed there

[Mike]

Got a text from the guy from whom I bought the bike today. He was notified today the title is on the way to him already. I know I sent in the correct paperwork to release it to me, so I am thinking whoever processed the transaction at Capital One was unfamiliar with the third party title release process, or was suffering from holiday laziness.

i experienced the same thing when i had a similar transaction. despite being told clearly to do so and it being proper to release the title to my bank, they sent it to the seller. not a big deal, but people working on this stuff seem to pay little attention to detail and just run it through.