Out of state bike with lien. Help?

[Big_Steve]

Found the deal of the century. The bike is in NC, and has a loan against it. How does someone buy the bike knowing the lien will be satisfied, and walk away from the deal with the title and bike?

The one time I did that with a car, both the seller and I walked into a local bank. I paid the lien, the bank stamped it "Paid" right under my nose, and I drove the car home with the title. I emailed the seller a few min ago, but wanted to hear from someone other then him how this works. The title could be 2000 miles away for all I know........

How do we do this with no one getting burned??????

 

[ricle41]

I have done this several times in my home state of Kansas. Here, all that is required when you pay the money and get the vehicle, is a bill of sale. You can download one on the internet, or make one up yourself. Include vehicle description (make, model, year), VIN (check it twice), selling price (adjusted to suit your needs), payment method, and signed by both parties.
You can then transfer it across state lines, and you have a legal document if you have any difficulties getting the title. I am sure different states may have different requirements, but that works here. Your banker or your county licensing department can give you the exact information.

 

[Papa Zook]

Call the lien holder (Bank, Credit Union, Finance Co, etc) and:

1) Verify the exact payoff amount on the bike and get them to fax you a confirmation on their letterhead stating how long the payoff amount is good for or how much per day to add to the payoff to cover mail time. Get the person's name and extension number who you talked to so you will have a contact should you have to make follow up calls.

2) Send the check directly to them and make the check payable to both the seller and the lien holder. If there is any equity, the lien holder can cut the seller a check for the difference.

3) Ask the lien holder where the title is being held and how long will it take to process it and send it to you. This may take a little while as they will give your check more than ample time to clear.

4) Ask seller to provide the lien holder a bill of sale from him to you and ask the lien holder to look over the bill of sale to verify it is executed properly and mail the bill of sale with the title when it is sent.

All lien holders are pretty savvy when it comes to titles and bill of sales and should be able to assist you with the process. If they are not, ask for their supervisor or title dept.

 

[Big_Steve]

Randy, at what point is the seller expected to physically give me the bike? When he's convinced I mailed the check, when the lien-holder gets the check, or when he gets his equity?

And if the seller is willing to write out a bill of sale, is there some reason to NOT give him his equity, and just mail the pay off amount to the lien-holder?

 

[Papa Zook]

Randy, at what point is the seller expected to physically give me the bike? When he's convinced I mailed the check, when the lien-holder gets the check, or when he gets his equity?

And if the seller is willing to write out a bill of sale, is there some reason to NOT give him his equity, and just mail the pay off amount to the lien-holder?

Most will want to make sure your check clears the bank before the bike ships and in this day and age you cant really blame them, but as a buyer you should verify everything you can. Is it an ebay sale? Craigslist? I have had good results with ebay, but Craigslist is scam city so just be careful and verify, verify, verify and I would have arrangements for shipping the bike made as soon as possible.

I would do the entire deal through the lien holder if at all possible and let them act as a sort of an "escrow agent" of sorts. That protects everyone's interests. If they are not local to the guy this can be a little more difficult but not impossible.

 

[Big_Steve]

Most will want to make sure your check clears the bank before the bike ships and in this day and age you cant really blame them, but as a buyer you should verify everything you can. Is it an ebay sale? Craigslist? I have had good results with ebay, but Craigslist is scam city so just be careful and verify, verify, verify and I would have arrangements for shipping the bike made as soon as possible.

I would do the entire deal through the lien holder if at all possible and let them act as a sort of an "escrow agent" of sorts. That protects everyone's interests. If they are not local to the guy this can be a little more difficult but not impossible.

Thanks. This bike is being sold by a long time member of a different bike discussion board I frequent. Don't know him personally, but he is well known/respected, and has there for several years.

Plans are still nebulous. Bike costs more then I wanted to spend. If it comes to that, I could head up there with a trailer, and wire the money to the lien holder. First things first. Haven't heard back from him yet.