For Sale by Owner that is financed - Advice Needed

I sold my MH last year and I still had a loan on it. The lending company was not local. I called the lending company and asked how to manage the sale and what the timeline would be as far as getting the title was concerned. Then I had the buyer call so he could get the same story.

We then entered into a legal contract. I filled out a bill of sale that spelled out all of the steps that were required to get the title and complete the transaction. The buyer used a bank check so they would have some traceability. The next day, when the check cleared, I did an electronic transfer of funds. I sent a copy of that transfer to the buyer and he called the lender to verify.

Then we waited. We were told it would be 10 days. The lender lied. 12 days later when I called they said it would be 30 days from that day. I stayed in constant communication with the buyer and the lender. I even did 3 way calls with them both. The day the title came in I called the buyer and offered to drive it to him. He decided to have me overnight it and I did. The next day he called and had the title. Soon after that he came to pick up the RV.

Other than the issue with the bank taking much longer than they said it would everything worked out well. If the OP needs help with this he/she can PM me and I will walk them through all of the details.

I sold my fiver a couple years ago and the buyer and myself went to the main branch of my credit union, they actually held the titles there. My bank called his bank for drafting instructions and wired the money over. Once it his my bank, they handed me the title and I signed it over to him.

When we sold our first ACE the buyer went through Good Sam (Essex credit/Bank of the west).

It was a VERY cumbersome transaction but it went like this:

Essex ordered an inspection of the RV - complete with pictures and assessment. Once that was done, they contacted my bank for a payoff, they created sort of a settlement sheet, the buyer had to pay/borrow X and ensured my loan was paid off. All documents were overnighted from Ca to MD, back and forth. Once the loan was approved and funds were released to my bank, the loan was paid off and the lien release was sent to Essex in CA, and then they did the title work for the buyer.

So while cumbersome it wasn't unlike a home settlement. I liked the due diligence and the fact that they ensured the loan as paid etc,. I had to actually sign a power of attorney for Essex credit to handle the loan payoff and title work.

I imagine any bank could do this really. The buyer and I were planning on sitting down at my bank and my bank was actually planning to do the settlement there but Essex handled.

msmith1199 wrote:
If I was a buyer, no way in heck would I ever give somebody $50k and trust they will pay off the loan.

Totally agree. Friend of mine purchased a vehicle that had a lien on it. He went with the owner to his bank... Made a check out to the bank for the payoff. Received a receipt for the payoff, and marked as "payoff, along with VIN number. Paid the owner the difference between asking price and payoff. Received a bill of sale. Drove off with the vehicle, and received the title in the mail about a week or so later.

If the buyer is financing, just have the banks do it, as others have suggested. Alot easier that way.

Mike

We looked into buying a car from the family of a neighbor who passed away last summer. The price was right and the car was great. However, financing on an owner sale vehicle was at a significantly higher interest rate than if we had purchased from a dealer. Go figure.

If I was a buyer, no way in heck would I ever give somebody $50k and trust they will pay off the loan. So you have to look at it from their end too. If I write you a check and it clears and you give me the motorhome, you can now take my money and head to Vegas. Eventually the lender is going to come after me and take their motorhome back and I'm left to try and get my money back from you.

You all are cognizant of the thread on this very forum where someone bought a rig from a supposed reputable dealer and 70 days later still did not have good title or registration.
SO as a buyer I would look for a clean title on delivery.

If you have a local bank instead of an internet bank the people there should be able to coordinate the buyers payment fr the rig,the payment to lender and the release of lien from lender

I sold my Harley on Ebay to a guy in Indiana a few years ago. I still had a balance at my credit union so I asked the associate there if she would explain the best way to the buyer.

She called him, verified I had a loan with them, and said they would have the title when payment was received. He paid a $500 payment for a deposit on paypal.Then I picked him up at the airport, drove to the house, checked the bike out and went to Credit Union, he had his bank wire the remaining funds and the credit union gave hime the title signed over and a notarized bill of sale. Took him to the house and he drove off.

DrewE wrote:
If I were the buyer, I would not want to hand over a check or money unless the other party was ready to hand me the signed title at that point. Taking possession of a vehicle without having the title signed over is no less risky than accepting an unverified large check, just for the other party--without the title, you in theory could claim the vehicle is stolen and make life very difficult for the buyer. (I'm not in any way suggesting that you would do that, of course, just describing the sorts of things that a buyer worries about.)

If your motorhome is financed through your bank or credit union, perhaps the easiest thing would be to meet there and have them verify the payment (hopefully cash, a bank check, or a wire transfer, which often could be verified more or less on the spot), and then release the lien and give you the title to give to them, along with the keys, bill of sale, etc.

J&R's suggestion to ask your lender is very good.

It won't work out that way. Most lenders hold the titles in document centers and they don't empower individual employees to verify payments, release liens and hand out titles.
However, all lenders have systems to handle these type of sales. Yes, both the seller and the buyer are going to have to trust the financial institution, but it will be safe for both parties. Contact your lender and they will walk you thru the process.

I took delivery of a car from a dealer that didn't have clear title. It was a month long hassle. The only reason it was resolved at all was because I had his dealer plate. I will never hand over a check without getting a title at the same time.