gp56

My cousin, who lives in NY is looking to buy a Z06 from someone that lives in NJ, so its a private party sale. He is pre approved for a loan, so no issues there, the seller has a loan with GMAC on the car. How does the payoff/transfer of title work in NJ? I have been told that in NJ the bank holds the title. He doesnt want to hand over payment without getting paperwork for ownership and keys on the spot. Any ideas how this transaction should take place? Thanks

tampatopless

I had the same problem when I bought a C5 a while back. Luckily the guy was willing to meet me at MY bank, which handled everything because they ended up as the lien-holder anyway. They ascertained the seller's payoff, paid off the other bank and gave the guy a check for his equity.

If you can get everyone to your brother's bank, it will go much easier. Because you KNOW your brother's bank will pay off GMAC. That's the biggest concern, IMO. Your brother's bank has to because they want the title and GMAC isn't going to fork it over to the other bank without the payoff.

Your brother's bank will actually ascertain the seller's payoff, cut a check to GMAC and give him a second check for the equity.

not08crmanymore

The only way to get the paperwork is to pay the bank directly and even then it might take a week or two and you can do.You can't get registered without a title in NY.You'll need the lien release to get that off the title too.I'd pass unless you can walk into the bank and pay them yourself and have them hand you the title and lien release,then have the guy sign it.

gp56

I agree, I wouldnt want him to pay off the guys lien and have nothing to show for it.

gp56

His bank told him they can mail GMAC the payoff and direct GMAC to mail him the title instead of the owner. We both thought that was ridiculous.

Rob 99

Ask the seller if there is a way for him to pay off the loan with funds other than yours, i know it's easier said than done but thats the only simple & sure way to do it.
Wonder if he would feel comfortable in your position not getting the title released along with payment at the point of sale.

gp56

That would be the perfect scenario. We dont know the payoff amount yet.

tampatopless

That's actually right except that in Florida we now have the ability to do electronic titling. Rather than have banks sending titles back and forth, they just release the lien, change the name and add the new bank as lienholder.

The interesting part is why your brother's bank would want the title mailed to him instead of the bank. I would think they would want to protect their interest.

tampatopless

The paper title is irrelevant. Nothing happens until GMAC directs the NY DMV to remove its name as lienholder. The title is not transferrable until that occurs.

And everyone is sure NY and NJ don't have electronic titling? I find that hard to believe.

gunterwalker

I don't know about NJ but in AL when I purchased my car the seller still owed on the car. I was paying cash so I got my bank to give me a cashier's check out of my account and went to the bank that held the title with the seller. I paid off the loan and then the bank that held the title gave him a check for the extra. Then in the lobby he signed the title over to me with a bill of sale that I had made. I walked out with the title and the car. Very easy transaction.

gp56

In NY you get the title, not the bank. The title will reflect the lien once you register the car and submit the old title to DMV.

gp56

I agree with you, however, lienholder is not a regular bank, its GMAC, not sure how that would work. Its not like they have local branches.

not08crmanymore

UMM,wrong.I can go get a car titled to me and the prior owners lien will still be listed if I don't give DMV a lien release.The paper title is not only rlelevant,it's a necessity in getting the car registered in NY and that is a fact.You go nowhere without that title and a bill of sale.PERIOD.

Thrill6

You can't transfer the title of a car unless all liens have been released. Same as a house, you can't transfer title to a house if there is a lien on it. A lien ensures that the lien holder gets paid before the title holder does.

not08crmanymore

Trust me,in NY it happens and it can be done.WHY ANYONE WOULD WANT TO IS ANOTHER STORY.

gp56

You can transfer the title but the lien would show up on the new owners title if it has not been paid off.

not08crmanymore

Exactly.

gunterwalker

Wish I was more bank savy or could help you more but I can only give you my experience. I did just buy a boat in NJ (last Friday) but the owner paid for the boat in full so there was no dealing with the bank other than my loan. Sorry I couldn't help more.

gp56

Appreciate you taking the time to post!

tampatopless

In Florida, DMV won't even look at an Application for Title until the FRVIS database shows the release. You guys are too hung up on titles. Every time a car is sold, a fresh title is issued. The only thing a title signed by buyer and seller allows you to do is to apply for a new title. I guess it would also show proof of ownership in a court of law or in a dispute provided nothing had happened beyond that point, but you have REGISTER the car for any of this to have any meaning. That title signed by buyer and seller gets turned into DMV right away when you register. At that point, we shred the old title.

And we don't give you a fresh one unless you request it. We store it electronically. When you want the paper title, come into the office and we can print you one on the spot for $25 or we can mail it in a week for free. We did because we kept issuing so many "lost title" replacements.

The bottom line is that if you want a totally secure transaction involving a seller who owes money and a buyer who is financing, do it at one of the two banks. Everyone will feel better about it. Then come into the office and we will issue you a 30-day temp tag at no charge (and extend it for another 30 if you need it) until both banks complete their paperwork. You can drive the car right away.