Signing a power of attorney for bank when selling your RV

toedtoes wrote:


JRScooby, the "red alarm" on that transaction is that the buyer signed over a check made out to himself to pay your friend. That was NOT the same as cashing a check and then giving you the cash. By signing over the check, the seller basically wrote your friend a check. And it was subject to the same risks that accepting any other check incurs.

Back then we where told a cashiers check, where I would have to give cash to the bank, and take the check was "guaranteed money". And at the time, I assumed the money I had in, and ran thru the bank would mean the bank would do any checks needed for me, like the call to the other bank. The check value was equal to the agreed sale price of both trailers. I also assumed the banker was basically cashing the check/guaranteed money for the buyer, and depositing part of the money in my account, and part in friends. IMHO, it should of been our bank that took recourse about the fraud, but just push some buttons, bank has their money back, we got the shaft.

As an added note, don't ever let someone cash a check written out to themselves at your bank to give you the cash. If the bank uses your account to "verify" or "ensure" the check, then they can take your account funds if that check bounces. Always make the person cash their check at THEIR bank or at a bank you have no association with (and don't go to the counter with them) - that way you will not be held liable if the check is bad.

But if I was to pick up cash at another bank, I would need to carry the cash from there to my bank. With the amounts involved, I would need to worry about 2 classes of people, one of which has a legal right to kill me if I tried to prevent them from taking the money. After this I learned I should of gone to the buyers bank, watch the check printed, and carry it to my bank. Or better, a wire transfer.

The police were right in that it was a civil matter. It was simply a bounced check as far as your friend's interests were concerned. Had the buyer cashed the check at his bank, then gave your friend the cash, then it would have been a criminal act of forgery and the BANK could file a criminal complaint.

No, while it might of been a legal, but was not right. If friend or I had beat the bank, police would of come for us. Friend is a law abiding man, and never broke even on the deal. The way I did it, I was able to sell a newer trailer, and the trailer bought from me disappeared into the same hole as the money he used to pay for it.

JRscooby wrote:

westernrvparkowner wrote:

The check is going to be made payable to the seller. It is sent to the buyer so they can exchange it for the RV. When a bank makes a loan for a vehicle they never, ever just give cash or a check payable to the borrower and hope they then complete the transaction.
With enough imagination, it is possible to concoct a wacky scenario were any transaction could be a fraud. Even "meet me at my bank and I will give you cash" could just be a trick to steal your RV when the buyer's accomplice is waiting outside to bop you over the head and steal back the money. In this case, it sure sounds like the OP has investigated it enough to know the transaction is legit and I think they would be walking away from a sale should they resist following the steps the bank is providing.

Many years ago, I was selling a trailer, (Not RV) and a friend was selling another. The buyer met us at a local bank where both sellers had accounts. Buyer had a cashiers check drawn on his bank couple hundred miles away, made out to himself. Banker made some calls to bank, credited my and friend's account, we signed titles, banker notarized, went to lot, hooked trailers to his trucks, had a round of beer. All was good for about 3 weeks, until the banks figured out the buyer had copied the check. My friend went to the Sheriff in buyers home county to make a report, was told it was a civil matter, hire a lawyer and sue. (Might of been a racial issue, I might of had better results) Nearly bankrupted my friend. Was enough outlaw in me to get my trailer back, but bouncing checks still cut me deep.

WRVPO, Not all financing results in a bank written check made out to the seller. My last car loan, they deposited the funds into my account and I took it out in cash to pay the seller.

JRScooby, the "red alarm" on that transaction is that the buyer signed over a check made out to himself to pay your friend. That was NOT the same as cashing a check and then giving you the cash. By signing over the check, the seller basically wrote your friend a check. And it was subject to the same risks that accepting any other check incurs.

As an added note, don't ever let someone cash a check written out to themselves at your bank to give you the cash. If the bank uses your account to "verify" or "ensure" the check, then they can take your account funds if that check bounces. Always make the person cash their check at THEIR bank or at a bank you have no association with (and don't go to the counter with them) - that way you will not be held liable if the check is bad.

The police were right in that it was a civil matter. It was simply a bounced check as far as your friend's interests were concerned. Had the buyer cashed the check at his bank, then gave your friend the cash, then it would have been a criminal act of forgery and the BANK could file a criminal complaint.

Again, without reading the POA paperwork everything here is an assumption. The POA may only provide a single specific function and may be predicated on a certain action having taken place first. The paperwork will detail that function and certain action. That will tell the OP whether it is prudent to sign it or not.

westernrvparkowner wrote:

The check is going to be made payable to the seller. It is sent to the buyer so they can exchange it for the RV. When a bank makes a loan for a vehicle they never, ever just give cash or a check payable to the borrower and hope they then complete the transaction.
With enough imagination, it is possible to concoct a wacky scenario were any transaction could be a fraud. Even "meet me at my bank and I will give you cash" could just be a trick to steal your RV when the buyer's accomplice is waiting outside to bop you over the head and steal back the money. In this case, it sure sounds like the OP has investigated it enough to know the transaction is legit and I think they would be walking away from a sale should they resist following the steps the bank is providing.

Many years ago, I was selling a trailer, (Not RV) and a friend was selling another. The buyer met us at a local bank where both sellers had accounts. Buyer had a cashiers check drawn on his bank couple hundred miles away, made out to himself. Banker made some calls to bank, credited my and friend's account, we signed titles, banker notarized, went to lot, hooked trailers to his trucks, had a round of beer. All was good for about 3 weeks, until the banks figured out the buyer had copied the check. My friend went to the Sheriff in buyers home county to make a report, was told it was a civil matter, hire a lawyer and sue. (Might of been a racial issue, I might of had better results) Nearly bankrupted my friend. Was enough outlaw in me to get my trailer back, but bouncing checks still cut me deep.

What is the problem with giving Power of Attorney over the title, if you still hold the title in hand?

What can a SE Financial do with a Power of Attorney over the title if they don't have the title? I guess get a replacement title. If they get a replacement title, what does that give them? The ability to take the trailer from you? Then what, sell it? I doubt they want to be bothered trying to sell your RV.

Sounds to me like they are protecting themselves from the buyer not handing the title over to them so they can file a lien on the RV.

Can a stipulation be added to the POA that the POA is null and void without proof of cancelled check showing they paid you for the RV?

Not trying to be an a$$, I just have no experience with this outside of a Dealer.

-Michael

You keep calling this company "a bank". It's not a bank. If your comfortable signing over your title before having the cash in you hand, then more power to ya.

2012Coleman wrote:

RubyRV wrote:

TenOC wrote:
Many (Most) car dealers have you sign a POA when you trade in your old car. It is in all the other stack of papers. If the bank is going to give you the check within a few minutes of signing the POA, no problem. But if it is a few days?????????

yes, that's standard procedure when trading to a dealer AT CLOSING.
But, like I've said the lender wants the POA executed before issuing and sending the check out. I figure is will be at least a several days before I will see a check...
They are sendng the check to the buyer and in turn he will give it to me at wich time im required to give him the title

So what happens if the buyer all of the sudden decides he wants to buy something else with the check and sticks this financing company? They have POA over your title - you loose.

I googled this company - they don't lend any less than 15K so that's a big sum to be burning a hole in your pocket. and why don't THEY want possession of the title? Instead they are letting the seller posses the title?

I'd tell the guy to either deal with a bank that you can actually go to -or go somewhere else. Sure, you want to sell it - but don't get swindled.

The check is going to be made payable to the seller. It is sent to the buyer so they can exchange it for the RV. When a bank makes a loan for a vehicle they never, ever just give cash or a check payable to the borrower and hope they then complete the transaction.
With enough imagination, it is possible to concoct a wacky scenario were any transaction could be a fraud. Even "meet me at my bank and I will give you cash" could just be a trick to steal your RV when the buyer's accomplice is waiting outside to bop you over the head and steal back the money. In this case, it sure sounds like the OP has investigated it enough to know the transaction is legit and I think they would be walking away from a sale should they resist following the steps the bank is providing.

RubyRV wrote:
I have a prospective buyer for my RV and HE is getting a loan thru Southeast Financial. I have complied with all their requests, RV inspection, Purchase Order, now they want me to sign a Power of Attorney giving them control over my title prior to giving me a check. I said I would sign one and hand it over with the title on receipt of the check. They said no check till I sign it.
QUESTION. Has anyone done this ? Do I have concern ? ETC. ?

It's a standard practice for banks these days. Any other buyer is going to have the same response from their bank if they finance.

I always thought Pennsylvania was just being a pain with the way they do their title transfers, until I see things like this. PA says both parties must be in the presence of a notary to sign a title over. If you can't be there to hand me money and sign the title, I'll find someone that can.

With a written bill of sale signed by buyer and seller of how the process will be completed I would move forward with all the finance requests. Bill of sale would state the RV is to stay with seller until check delivered. Sale 'as is, where is, no warranty'. Max 21 days to complete.