Out of state Lien Holder

[socal996]

Hello All,

Been looking for a car for several months and continue to bounce back and forth between a late model 911 Cab or a 993 Cab. Finally settled on a 1989 Cabriolet low mileage car. The car is out of state AZ (I live in CA) and one of our members was kind enough to go and view/drive the car. Had Don Jackson's in AZ do a PPI, actually the owner did after I suggest using DJ. At a fellow members suggestion of course. Anyway, long story short, we settle on a price and I'm thinking when I can fly over and look at/buy the car. Here is the question, the car has a lien on it, so the seller would like me to provide a cashiers check then he would deposit and payoff the loan and mail me the notarized title when he gets it. I don't think much of spending $20K and driving away with a bill of sale. Anyone been through something like this? Seems me and the seller could go to the bank/loan company with a certified check and walk away with a clean released title. Suggestions?

Brian

[9dreizig]

Unfortunately, that's the way it's done.. I would get a payoff and have that portion written out to the lien holder, that way you've got that part covered.. Might want to talk to them first too..

[FenderGuy]

Real debate is 911 vs. 993; I'd hate to be in your situation

[dtw]

I've done it that way as the seller. Lender had title stored remotely and would not retrieve it until the loan was paid. Buyer got a bill of sale and received the title via overnight days later. Happens all the time.

Side note: My buyer paid me (something like $25k) in twenty dollar bills in two big burlap sacks. I liked that.

[9dreizig]

yes actually as the seller, it's not even safe to get a cashiers check anymore ( too many forgeries)

[ned903]

Is the lien holder a financial institution? I had a similar situation when I bought my 911 about a year ago. I met the seller at the lien holder’s ( a credit union). That way the deal was done hand to hand and everyone was happy.
I don’t see why that would not work even if the lien holder was not a bank, etc. Just meet at the lien holder's bank. They can get confirmation of your check and the lien holder can get his/her money from the seller and then release the lien. The seller then gets the rest of the funds.

[Mattlock18]

Any bank should be able to provide you with a release of lien at a branch. If I was you, I would go to the bank with he seller and get the title cleared right there.

Ask which bank has the lien and give it a call yourself. I'm sure they'll tell you they can release the lien right there (provided you pay with certified funds).

[tcar]

Done it a couple times. Meet at the lienholder's (bank, CU) and do it there. Don't just give the guy the check. The back will contact your financial institution to make sure your funds are good.

You might not get the actual title for several days.

[Gene Wilkes]

If you use any type of check there will be time tied up while the check clears. Speak with the people who hold the lein to find a way to expidite!

[cgarr]

Why is there a lien on a 20 year old car?

[Jamie79SC]

Wire transfer is cheap, easy, and safe for all concerned. Get the amounts, and recieving bank information set up with your bank before you leave for your trip. When you arrive and all is in order, call your bank and have them release funds.

The money won't actually be in the new account for several hours to a day later, but the banks can talk to each other and be assured that all is legit.

I just sold a boat to someone out of state (out of country actually) that way and bought a house in another state (from where my bank is located) in the last few months and it's the only way to fly.

[scottb]

Originally posted by cgarr
Why is there a lien on a 20 year old car?

Maybe the current owner only bought it a few years ago, and hasn't paid-off the loan yet.

[JABSEA]

I am in the midst of the same issue buying an out-of-state car. The seller has suggested we sign a purchase agreement to document that I bought the car and he has received full payment while the paperwork gets processed.

I am trying to figure out if I can go the wire transfer route...

[socal996]

Thanks for all the great feedback, this is the place for information. This is the way I'm seeing it. At the end of the day I'm the one taking all the risk and paying all the money. Deal just will not work for me. Maybe I'm overly cautious, but then it is my money. So, the search continues.

To all the others involved in similar deals best of luck.

Regards,
Brian

[450knotOffice]

When I bought my '84 a few years ago, I gave him a certified check. However, it took over a week before his bank would officially credit his account with the funds because of the high number of forged, fake checks floating around out there. When we took the certified check to his bank, they wouldn't cash it but instead agreed to take it as a deposit and hold his funds until the check officially cleared. It was a total pain in the a$$ and the deal was that I wouldn't get the car until his bank account had real money in it (however, he did give me the signed pink slip, which was good). When it was official, I went and got the car from him.

[JoeyD911]

If you have the bill of sale notarized by someone who witnesses the transaction and you take physical possesion of the vehicle at that time, AND you get a bank check cut directly to the lienholder you would be able to get a replacement title with a little extra time and paperwork. 99 times out of 100 though, this goes off w/o a hitch. Happens all the time.

Don't miss out on the perfect car over this, you may run into that situation again in this search!

[FenderGuy]

Originally posted by socal996
Thanks for all the great feedback, this is the place for information. This is the way I'm seeing it. At the end of the day I'm the one taking all the risk and paying all the money. Deal just will not work for me. Maybe I'm overly cautious, but then it is my money. So, the search continues.

To all the others involved in similar deals best of luck.

Regards,
Brian

Don't take all the feedback on this board to heart Brian, in the end it is your choice. Talked to DJ today said the car was beauitful, which I have to agree with him, best drive I've had in while next to mine....

[mthomas58]

Cashier's & Official Bank checks clear through the normal check clearing process just like any other check AND stop payments can be placed on them just like any other check. That's why banks will not give immediate credit and will place a clearing hold on the funds before releasing any assets held as collateral for a loan.

Wire transfers are the only form of immediate payment in "good funds". If the bank holds the title locally, you may be able to make advance arrangements to exchange the title for payment, however, in most cases, the titles are housed in a central location and lien releases are processed after payoff and make take several days to work through their system after the payoff funds clear.

Best advice, call the lien holder to confirm the payoff number and discuss options for you to take title. You may need the borrowers written consent for the lender to discuss loan specific vs general payoff information.

[KFC911]

Originally posted by Jamie79SC
Wire transfer is cheap, easy, and safe for all concerned. Get the amounts, and recieving bank information set up with your bank before you leave for your trip. When you arrive and all is in order, call your bank and have them release funds.

The money won't actually be in the new account for several hours to a day later, but the banks can talk to each other and be assured that all is legit.

I just sold a boat to someone out of state (out of country actually) that way and bought a house in another state (from where my bank is located) in the last few months and it's the only way to fly.

If you have ANY reservations at all, then as Jamie has pointed out, "wire transfers" move mega-billions everyday and is a bullet proof way to transfer funds between financial institutions with no risk.

[Wayne 962]

Make sure that the check is made out to the bank - not the guy...

-Wayne