Buying privately when money still owed on loan.
Whats the best way to handle when owner still owes money on loan?
Forum Discussion
Oh this brings up some unpleasant memories for me, and I was the seller.. We had an old TT with a small balance on it. We sold it through a private party ad, and we were very clear with the prospective buyer that we needed to pay off the loan before the title could be switched. He made out a check to the bank for the balance owed, and a check to us for the balance. Together, we mailed the check to the bank. Then I waited on the title, and waited, and waited. The new owner was getting rightfully upset when 30 days had gone by and the he still didn't have the title.
I started calling the bank two weeks after the transaction. They said it takes a while to process. I kept hounding them. After about 45 days, they said they'd mailed out the title two weeks after we mailed the payment to them.
The title never came and after 60 days, I had to contact the DMV in California for a duplicate title. It was finally sent to us and of course, it still showed the bank as the lien holder. Since the bank was in Colorado, I took the duplicate title and drove from California to Colorado so I could go to the bank and get the title transferred and notarized.
While I was in Colorado, I called the DW to check in. She told me that lo and behold, the original title had come in the mail while I was on my trip! It had been postmarked almost two months earlier, and the envelop was extensively damaged. It looks like the long delay was due to the post office.
While I was gone, DW contacted the incredulous new owners, gave them the title, and showed them the envelope with the post mark. They were apologetic for getting angry, but we certainly understood their position.
To make a long story short, deal locally, and conduct the business at the bank or lien holder instead of relying on mail to do your transaction.
I started calling the bank two weeks after the transaction. They said it takes a while to process. I kept hounding them. After about 45 days, they said they'd mailed out the title two weeks after we mailed the payment to them.
The title never came and after 60 days, I had to contact the DMV in California for a duplicate title. It was finally sent to us and of course, it still showed the bank as the lien holder. Since the bank was in Colorado, I took the duplicate title and drove from California to Colorado so I could go to the bank and get the title transferred and notarized.
While I was in Colorado, I called the DW to check in. She told me that lo and behold, the original title had come in the mail while I was on my trip! It had been postmarked almost two months earlier, and the envelop was extensively damaged. It looks like the long delay was due to the post office.
While I was gone, DW contacted the incredulous new owners, gave them the title, and showed them the envelope with the post mark. They were apologetic for getting angry, but we certainly understood their position.
To make a long story short, deal locally, and conduct the business at the bank or lien holder instead of relying on mail to do your transaction.
