Hello everyone. I am in the process of selling my Class A. Kids are in their mid to late teens and we are still a few years from retirement so the RV is sitting most of the time unless we can all get our schedules coordinated. Time to let someone else enjoy the lifestyle as much as we have.My question relates to the logistics of payments. I did searches on the forum and learned a lot but still have questions so I appreciate everyone’s patience.The RV has a lien at a local credit union but the selling price that I hope to get should cover the loan amount. Paying off the loan ahead of the sale to get a clear title is not an option. The folks at the bank tell me that if the seller wires the money to the credit union, or pays for the RV in cash, they can release the lien and provide a clean title on the same day. They indicated that if the buyer pays with a cashier’s check (or uses any means other than wire/cash) it would take 10 days until the funds are released at which point they lien would come off the motorhome.If I’m the buyer, neither of these options thrill me. I’d be hesitant to wire money to a stranger’s bank for obvious reasons. Nor would I want to wait 10 days to take possession of an RV that I paid good money for. As the seller, I obviously want to make sure that I got paid before turning over the keys and signing over the title.So how do people do this? I must be missing something because individuals buy and sell RV’s all of the time. Thanks in advance for your help and guidance.

Simple bank to bank transaction. The buyer will likely need to get a loan to pay you. The bank they get the loan from would wire the money to your bank. Your bank provides the title. Other than cash do not do the deal any other way. There are too many crooks out there creating bogus cashiers checks and driving off with others people property. And 10 days later when that check doesn't clear....you still owe for the RV the bad guy has half way across the country.

Thank you for the quick response. That is exactly my concern. Forgive my ignorance, but how exactly does a bank to bank transaction work? Let’s say we agree on a price and shake hands on the deal. Sounds like I provide the buyer with my bank info and loan # and he has his bank send the money to my bank? What protects the buyer from transferring the $ to pay off my loan and then never seeing me again? Do we meet at his bank to initiate the transfer and then go to my bank to get the documents releasing the lien? That is the part that I am struggling with.

That would be something to discuss with your bank. My guess would be they would probably open up a temporary account to put the money into. You can't access it until the paperwork is done and the bank gets their money. Then they would transfer any remaining balance to your account. You would both most likely need to be present to sign paperwork. So it is important to get appointments set up that meet everybody's schedules.

If the buyer is getting a loan... take your paperwork to his bank and everything will be done and verified by his bank that it is legit.If the buyer is paying cash... go to your bank and your banker will assure the transaction is legit and receive the payment and release the title.Not a big deal. Don't overthink it.

PIlots123 wrote:What protects the buyer from transferring the $ to pay off my loan and then never seeing me again?.I would think the buyer would wire you the entire purchase price. Only after that does he take possession. A wire is one of the safest methods. Liens and loans do get messy.

Selling an RV with a lien | Good Sam Community

schlep1967
Nomad
Jun 05, 2019
Simple bank to bank transaction. The buyer will likely need to get a loan to pay you. The bank they get the loan from would wire the money to your bank. Your bank provides the title.
Other than cash do not do the deal any other way. There are too many crooks out there creating bogus cashiers checks and driving off with others people property. And 10 days later when that check doesn't clear....you still owe for the RV the bad guy has half way across the country.
PIlots123
Explorer
Jun 05, 2019
Thank you for the quick response. That is exactly my concern.

Forgive my ignorance, but how exactly does a bank to bank transaction work?

Let’s say we agree on a price and shake hands on the deal. Sounds like I provide the buyer with my bank info and loan # and he has his bank send the money to my bank?

What protects the buyer from transferring the $ to pay off my loan and then never seeing me again? Do we meet at his bank to initiate the transfer and then go to my bank to get the documents releasing the lien? That is the part that I am struggling with.
schlep1967
Nomad
Jun 05, 2019
That would be something to discuss with your bank. My guess would be they would probably open up a temporary account to put the money into. You can't access it until the paperwork is done and the bank gets their money. Then they would transfer any remaining balance to your account. You would both most likely need to be present to sign paperwork. So it is important to get appointments set up that meet everybody's schedules.
time2roll
Nomad
Jun 05, 2019
If the buyer is getting a loan... take your paperwork to his bank and everything will be done and verified by his bank that it is legit.

If the buyer is paying cash... go to your bank and your banker will assure the transaction is legit and receive the payment and release the title.

Not a big deal. Don't overthink it.
2oldman
Explorer II
Jun 05, 2019
PIlots123 wrote:
What protects the buyer from transferring the $ to pay off my loan and then never seeing me again?.
I would think the buyer would wire you the entire purchase price. Only after that does he take possession. A wire is one of the safest methods. Liens and loans do get messy.
Sam_Spade
Explorer
Jun 05, 2019
PIlots123 wrote:

The RV has a lien at a local credit union but the selling price that I hope to get should cover the loan amount. Paying off the loan ahead of the sale to get a clear title is not an option.

FIRST....clarify with your credit union that you can not convert the "vehicle loan" to an unsecured personal loan with a "no penalty" prepayment option.

If you can, that would simplify things a LOT.

The interest rate likely would be quite a bit higher......but hopefully the total cost won't be much because you can pay it off in a few months.
msturtz
Explorer
Jun 05, 2019
This is easily done with a purchase and sale agreement coupled with a notarized release of interest. You and the buyer would come to an agreed amount and then go to your bank. At your bank, you and the buyer would sign a legally binding purchase and sale agreement (you can find one online) and notarize the release of interest form. Your bank would either accept the cash or wire transfer for the loan amount and any amount over the loan balance. The buyer would then process the wire transfer from their bank. If the buyer is using a check from their bank then the 10-day rule would apply. The check can be "sent for collection" which means that your bank would send the check via the ACH system to the payer bank for funds transfer. As soon as the funds clear the buyer can take delivery. Technically, they can take the purchase and sale agreement combined with the release of interest form to the Department of Licensing to gain title to the RV. I am not an attorney. This is just like selling any other titled property such as car or boat.
George3037
Explorer
Jun 05, 2019
PIlots123 wrote:
Thank you for the quick response. That is exactly my concern.

Forgive my ignorance, but how exactly does a bank to bank transaction work?

Let’s say we agree on a price and shake hands on the deal. Sounds like I provide the buyer with my bank info and loan # and he has his bank send the money to my bank?

What protects the buyer from transferring the $ to pay off my loan and then never seeing me again? Do we meet at his bank to initiate the transfer and then go to my bank to get the documents releasing the lien? That is the part that I am struggling with.

I sold a truck with a lien a few years ago. The lien was held by my credit union where I also have my checking account. The buyer and I agreed on a price. He made arrangements with his bank (signed paperwork ahead of time) and we met at my credit union to close the deal. My credit union agent did the paperwork, called the buyers bank with all the details and made the transaction into my account. My CU then satisfied their lien from my acct. and sent the lien release and title to the buyers bank. Copies of all paperwork given to both parties. Buyer got new title from his bank with their lien on it. I later received some overpaid interest in my acct. since the transaction paid off my lien early.

Banks do this stuff daily so its not rocket science. Whole transaction in CU took about an hour or so.
rgatijnet1
Explorer III
Jun 05, 2019
As mentioned, it is a simple transaction between two banks. Their bank will wire the money and confirm that it was accepted. If their bank is giving the loan, they will confirm acceptance of the title, with them listed as lien holder.
The last coach I bought, I paid $9000 less than the loan balance so the seller had to pay the difference just to get out from under the loan. This was still an easy transaction for me as a cash buyer.
Chum_lee
Explorer
Jun 05, 2019
There is an element of risk here, but . . . . . the potential buyer should independently confirm the outstanding loan balance with your finance company, then negotiate the difference between the sales price and the loan payoff amount with you. (the registered owner) The buyer meets your bank representative and confirms independently with them ALL the conditions of sale and title transfer. The buyer pays you (to your satisfaction) the difference between the sales price and the loan balance (your equity) and takes the signed over registration, (seller releases interest in vehicle) a signed, dated bill of sale, (written by you) the vehicle, and YOU to the bank where the buyer pays off the loan to the banks satisfaction. The bank releases the lien. YOU must accompany the buyer (in the vehicle) to the bank and make sure they pay the loan off prior to letting them drive away in the vehicle. (VERY IMPORTANT) Do not let the vehicle go (for any reason) until YOU have confirmed with the bank that the loan is paid in full to the banks satisfaction. (not yours) IMO, that will minimize (not eliminate) the chances of getting burned. This is NOT the time to listen to ANY fast talking wheeler dealer. If you feel uncomfortable for any reason, . . . STOP, and wait until you feel comfortable! In this type of transaction, time is your friend and the enemy of the potential scammer. Use your time wisely.

Chum lee

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