Escow accounts??

[RNDad]

My wife and I are interested in purchasing a 1 or 2 year old Class A MH in the near future, our 4th unit since 2000. Mainly only interested in private party sales, would like to skip the BS at many of the big named stores. The question is when buying used from a private seller, how do I handle the transaction issue. Planning on 50 to 70K and I don't feel at all comfortable turning that kind of money over and waiting for the seller to pay off their loan in order to get me the title. This just seems uncomfortable for me. In the past I either went through a dealer or it was under 10K.
Thanks you.

Thoughts??

Scott

[rockhillmanor]

:S

Read the whole thread AND especially the posts about Florida title law.

It is far DIFFERENT when it comes to obtaining a title at the time of payoff to any bank to satisfy a cash buyer safely in the state of Florida.

Sadly the way things are now a days I would shy away from any private sales deal that the seller had a payoff on. Too many scams that can easily take your money. Heck even cashiers checks can't be used any more as a safe means of money transactions.

[msmith1199]

1BryNelson wrote:

msmith1199 wrote:

1BryNelson wrote:
If the seller's lender has a local office, conduct the transaction there. Lender can then provide immediate proof of payoff and Notorize any Title or other proof of ownership that needs signing.

The lender isn't going to sign off any title until funds have cleared. So unless you walk in with a pile of cash plans like this may not work.

Now a days funds can be verified in minutes. Geez juat call seller's lender to find out.

Verified funds and cleared funds are two different things aren't they?

[Jayco-noslide]

Just make sure they have a free and clear title to sign over at the time of sell and write a check. I've done this many times and never thought a thing about it. Although $23,000 is the largest amount I have ever done. But if you have a legal title and possession of the motor home and they have your check and they type out a receipt and you both sign it, I don't see the problem? Maybe I need some education?

[1BryNelson]

msmith1199 wrote:

1BryNelson wrote:
If the seller's lender has a local office, conduct the transaction there. Lender can then provide immediate proof of payoff and Notorize any Title or other proof of ownership that needs signing.

The lender isn't going to sign off any title until funds have cleared. So unless you walk in with a pile of cash plans like this may not work.

Now a days funds can be verified in minutes. Geez juat call seller's lender to find out.

[Desert_Captain]

mfox20 wrote:
Deal with the bank directly. The title should be in their name. They can transfer title to you and they pay the difference back the seller.

Sorry but that is very bad information. The title is in the name of the owner and the lender is listed on the title as holding the lien (loan). When they are paid off all they can and will do is release the lien obligation. They have no power whatsoever to convey title to the buyer as they do not and never did own/hold title the RV.

I agree you want to deal with the bank that has the loan directly to insure that they are paid in full (by you), and that their lien is fully released. The equity, if any, held by the seller is what he is entitled to and only a fool of a seller would release/convey title before being paid in full with guaranteed funds/cash.

This can all be done by a reasonably sophisticated buyer/seller but sometimes a couple of hundred dollars to an escrow agent can be money well spent.

As always.... Opinions and YMMV.

:C

[msturtz]

Most lenders will take a cashiers check from a known major bank and they will take a wire transfer. Keep in mind that you will still need to wait for them to release the lien which could take a few days. In electronic title states it could be much faster.

[msmith1199]

1BryNelson wrote:
If the seller's lender has a local office, conduct the transaction there. Lender can then provide immediate proof of payoff and Notorize any Title or other proof of ownership that needs signing.

The lender isn't going to sign off any title until funds have cleared. So unless you walk in with a pile of cash plans like this may not work.

[J-Rooster]

2bzy2c wrote:
You would get the lenders name and contact info. You would pay your money to the lender., NOT TO THE SELLER. The lender will then give you a bill of sale and the title.

X-2, don't get any simpler than that!

[1BryNelson]

If the seller's lender has a local office, conduct the transaction there. Lender can then provide immediate proof of payoff and Notorize any Title or other proof of ownership that needs signing.

[RNDad]

Thank you everyone, your advise is helpful and appreciated.

[rgatijnet1]

What other people have experienced in other states is of no bearing to what you will run in to in Florida. As I said, by Florida statutes, all banks or finance companies use electronic titles for ALL transactions that have a lien holder. Electronic titles
You can go to the sellers bank and pay off the loan, but you CANNOT walk out with any paper title or anything else that you can take to the DMV. The title will be released at the DMV by the company that I listed above, which does not happen immediately, especially if there is any kind of delay in processing your funds that were used to pay off the loan.
Once the electronic title company releases the lien to the Florida DMV, you and the seller can walk into any Florida DMV office and the SELLER can BUY, for about $20, a paper title. He can then sign over that paper title to you and you can register the vehicle in your name, after you pay the necessary sales tax and title fees. If you want to walk out with a paper title in your name, the DMV will print you one for $20.
Prior to going through these steps, you can write up a sales agreement between you and the seller and have it notarized but unless his bank is going to finance it for you, they do not care what kind of agreement you have with the seller. That is out of their hands. All they want is for the loan to be paid off.

[darsben]

dan-nickie wrote:
I've done it multiple times.
Meet at the bank.
Seller's bank if there is a loan payoff.
Buyers bank if no current loan.

Exactly have the bank manager handle all paperwork and moneys. Make sure you are prepared to do a wire transfer to the sellers bank or you have deposited enough money in an account you set up at the sellers bank. Account should be set up far enough in advance for your funds to be free of hold at the new account. You should be able to walk out of the bank with everything you need for the DMV

[Sully2]

Deal in cash!!!

[dan-nickie]

I've done it multiple times.
Meet at the bank.
Seller's bank if there is a loan payoff.
Buyers bank if no current loan.