Good Sam Club Open Roads Forum: Selling an RV with a lien
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 > Selling an RV with a lien

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Chum lee

Albuquerque, NM

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Posted: 06/05/19 02:00pm Link  |  Quote  |  Print  |  Notify Moderator

There is an element of risk here, but . . . . . the potential buyer should independently confirm the outstanding loan balance with your finance company, then negotiate the difference between the sales price and the loan payoff amount with you. (the registered owner) The buyer meets your bank representative and confirms independently with them ALL the conditions of sale and title transfer. The buyer pays you (to your satisfaction) the difference between the sales price and the loan balance (your equity) and takes the signed over registration, (seller releases interest in vehicle) a signed, dated bill of sale, (written by you) the vehicle, and YOU to the bank where the buyer pays off the loan to the banks satisfaction. The bank releases the lien. YOU must accompany the buyer (in the vehicle) to the bank and make sure they pay the loan off prior to letting them drive away in the vehicle. (VERY IMPORTANT) Do not let the vehicle go (for any reason) until YOU have confirmed with the bank that the loan is paid in full to the banks satisfaction. (not yours) IMO, that will minimize (not eliminate) the chances of getting burned. This is NOT the time to listen to ANY fast talking wheeler dealer. If you feel uncomfortable for any reason, . . . STOP, and wait until you feel comfortable! In this type of transaction, time is your friend and the enemy of the potential scammer. Use your time wisely.


Chum lee

lots2seeinmyrv

Neither Here nor There

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Posted: 06/05/19 02:32pm Link  |  Quote  |  Print  |  Notify Moderator

Make sure you get all the documents you need from Motor Vehicles Department too.

We had to have a Notarized Bill of Sale that our DMV provided. Also, we had to turn in our license plates. In our case, we got a refund from DMV on our remaining time we had on our plates.

All paperwork was signed by the Buyer and Seller in the bank with a Notary.

The bank made one copy each of all documents for both parties.

The Buyer does NOT need to know your loan balance, it is none of their business.

Agree upon the sale price and they provide the funds, period.

As long as the loan is paid off, the bank does not care. If you owe more than agreed upon price, you pay off the balance.

If you get MORE money than you owe on the Coach...the bank will give you a refund when it all settles, the Title is issued, and the Buyer does not need to know this.

If you get more money, simply call the bank to close out the loan account and they will issue you a refund check.

midnightsadie

ohio

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Posted: 06/05/19 03:15pm Link  |  Quote  |  Print  |  Notify Moderator

its done all the time .deal with the bank they do it every day.

time2roll

Southern California

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Posted: 06/05/19 03:26pm Link  |  Quote  |  Print  |  Notify Moderator

Chum lee wrote:

There is an element of risk here, but . . . . . the potential buyer should independently confirm the outstanding loan balance with your finance company, then negotiate the difference between the sales price and the loan payoff amount with you.
The amount of the debt is none of the buyers business. No need for the seller to share this information when negotiating price.


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Chum lee

Albuquerque, NM

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Posted: 06/05/19 04:16pm Link  |  Quote  |  Print  |  Notify Moderator

time2roll wrote:

Chum lee wrote:

There is an element of risk here, but . . . . . the potential buyer should independently confirm the outstanding loan balance with your finance company, then negotiate the difference between the sales price and the loan payoff amount with you.
The amount of the debt is none of the buyers business. No need for the seller to share this information when negotiating price.


It might be the buyers business, . . . . hopefully not. I know, I know, it's an outside chance, but, if I was buying a used MH with a lien on it (any vehicle really) it WOULD be. What if the seller is upside down in the vehicle? (owes more than it's worth which is a high probability with a used MH) I wouldn't want to buy any vehicle (without prior knowledge) where I could potentially assume some of the debt of someone else. IMO, knowing what the current owner owes his bank (and confirming that's the only loan/lien on the vehicle) reduces the risk when you consider the overall cost of the purchase. IMO, there are just many flaky sellers as there are buyers. Do some research on title loan fraud.

Banks do these types of transactions all the time and the laws vary from state to state. What if the buyer is acting as their own out of state agent and there is no bank on the cash buyers part? Buyer beware!

Chum lee

imgoin4it

Alamogordo, NM USA

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Posted: 06/05/19 04:47pm Link  |  Quote  |  Print  |  Notify Moderator

Just go to bank and tell them what you want. Or your credit union where it is financed. They probably will set up an escrow account where the account will hold your title until they get the money from buyer. When money is in the escrow account count they will release the lean and send title to new owner. Works very well. Buyer and seller are both protected. Think this is basically how it’s done when every one is saying do a bank to bank transfer


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Lwiddis

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Posted: 06/05/19 04:59pm Link  |  Quote  |  Print  |  Notify Moderator

Banks and credit unions trust each other. They do this everyday.


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twodownzero

NM

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Posted: 06/05/19 05:20pm Link  |  Quote  |  Print  |  Notify Moderator

time2roll wrote:

Chum lee wrote:

There is an element of risk here, but . . . . . the potential buyer should independently confirm the outstanding loan balance with your finance company, then negotiate the difference between the sales price and the loan payoff amount with you.
The amount of the debt is none of the buyers business. No need for the seller to share this information when negotiating price.


A lien is a transfer of a portion of one's property interest. The debt is not the buyer's business, but the value of the lien definitely is. Those are usually the same number.

oldmattb

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Posted: 06/05/19 05:32pm Link  |  Quote  |  Print  |  Notify Moderator

I bought an RV with a lien. Seller disclosed the lien when we started talking seriously. I had no problem with that.

We met at the seller's bank. I had a check issued by my bank. He had the remaining balance. His bank had the title. His bank got the money, seller got the debt released. I left with a notarized title.

No problems at all. I suspect that any questions about the validity of the check were answered to the seller's bank's satisfaction before we walked out.

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soren

Lancaster County PA

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Posted: 06/05/19 06:18pm Link  |  Quote  |  Print  |  Notify Moderator

On a related note, I would keep in mind that a lot of potential buyers will have dealt with at least a few folks in your position that have liens, owe more that what the unit is REALLY worth, and have wasted the potential buyer's time. I got to the point, while buying my last two used class A rigs, that I would cut to the chase real fast when talking to a private owner. I knew what a fair price range was, and that most will start out asking for more than that amount. Within the first couple minutes of talking to a seller, I would ask how flexible they are on their asking price? I lost track of how many folks were ask crazy amounts, sometimes well above dealer asking prices, and answered, "well, I really can't negotiate, that figure is my loan balance".

There are many sellers that don't seem to comprehend that what they owe on a rig has less than zero to do with what it's worth, and they are either going to have to ride it out until they are right side up enough to sell it, or pony up the cash to get themselves out of the hole they are in. Not suggesting the seller is in this situation at all, but if you shop long enough for used motorhomes, you tend to cringe when a private seller says, "well, there is a lien, but it's no problem" For a lot of sellers it's actually a huge problem.

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