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Buying car with a lien

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Old 04-07-2018, 05:10 PM
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farmington
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Default Buying car with a lien

has anybody bought a car that had a lien on it where the lien had to be paid off then it took a few days for the bank to release a clean title? Looking at a car like this. Bank is Wells Fargo. How is this done?
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Old 04-07-2018, 05:29 PM
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919cw313
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Car is in MI or is it somewhere the lienholder keeps the title until paid off?
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Old 04-07-2018, 05:39 PM
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LMB-Z
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Easiest way is to have your bank contact the other bank. Let them handle it, they know how.

Bought a car with a lien, called my Credit Union, they called the other credit union, done. Took about 15 minutes.
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Old 04-07-2018, 06:27 PM
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farmington
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I am in Michigan and car is in ohio
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Old 04-07-2018, 06:42 PM
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919cw313
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Originally Posted by farmington View Post
I am in Michigan and car is in ohio
Maybe some Ohio people will chime in with advice, but I wouldn't do it, I just don't trust people enough.

I think your best bet is to call WF and ask how they would do it. You certainly don't want to write the seller a check and have them send a clear title to him instead of you.
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Old 04-07-2018, 06:55 PM
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Originally Posted by LMB-Z View Post
Easiest way is to have your bank contact the other bank. Let them handle it, they know how.

Bought a car with a lien, called my Credit Union, they called the other credit union, done. Took about 15 minutes.


Originally Posted by farmington View Post
I am in Michigan and car is in ohio
Should still be able to have your bank/credit union handle it. Several years ago when I was stationed in Hawaii; bought a vehicle with a lien on it from an individual in the Navy. His bank was in California, my credit union was in Hawaii; went to them and they handled everything.

Last edited by Welker1; 04-07-2018 at 06:55 PM.
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Old 04-07-2018, 07:13 PM
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I've done this several times. Just let banks handle it. That's what you pay them for.
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Old 04-07-2018, 07:23 PM
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In the days of yore, there was a thing called a "titled attached check".
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Old 04-08-2018, 12:41 AM
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It doesnt matter where the car is and where you are...financial institutions have ways of communicating with each other, and sending money. When I bought my 05, my Credit Union was in Texarkana...car was in Plano, car was financed somewhere else. My credit union spoke with owner of car, who gave them info, then they called his financial place, made the deal. About 15 minutes later, credit union called and said it was a done deal. 2 minutes later, his place called and said done deal. I drove the car home. Signed papers the next day. Done. They know how to do it, trust me.
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Old 04-08-2018, 06:19 AM
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I literally just did this last week. I met the previous owner at his credit union after having already secured funds from my bank. After all wheeling and dealing was done, we went inside his bank and I got the payoff amount. I wrote a check to the bank for the amount and a check to the seller for the agreed upon amount less the payoff. He signed the title and I left. Got back to my state and took the title and inspection sheet to the tag office for my donation to the state. Checks cleared and I'm still driving with a perma-grin!
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Old 04-08-2018, 10:08 AM
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Originally Posted by Gator6977 View Post
I literally just did this last week. I met the previous owner at his credit union after having already secured funds from my bank. After all wheeling and dealing was done, we went inside his bank and I got the payoff amount. I wrote a check to the bank for the amount and a check to the seller for the agreed upon amount less the payoff. He signed the title and I left. Got back to my state and took the title and inspection sheet to the tag office for my donation to the state. Checks cleared and I'm still driving with a perma-grin!
This only worked out because he was financing at a Credit Union. Banks on the other hand are a pain in the ***. They can take up to 3 weeks to release a title. Went through this a few times already unfortunately.

Be careful with credit unions as well. Some of them keep the title in their "main office branch" and can also take a few weeks to release.
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Old 04-08-2018, 10:39 AM
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Originally Posted by slowstang305 View Post
This only worked out because he was financing at a Credit Union. Banks on the other hand are a pain in the ***. They can take up to 3 weeks to release a title. Went through this a few times already unfortunately.

Be careful with credit unions as well. Some of them keep the title in their "main office branch" and can also take a few weeks to release.
banks will release Title if the funds can be varified or itís paid off with cash. I think the last 6 vehicles I bought all had liens. It isnít that big of a deal at all. If you pay with cashiers check some banks and credit unions will still wait for it to clear(7-10 days) before releasing the title. You can have them over the seller overnight it to you. Just get a bill of sale that out lines everything.

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Old 04-08-2018, 10:47 AM
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Originally Posted by artz66 View Post


banks will release Title if the funds can be varified or itís paid off with cash. I think the last 6 vehicles I bought all had liens. It isnít that big of a deal at all. If you pay with cashiers check some banks and credit unions will still wait for it to clear(7-10 days) before releasing the title. You can have them over the seller overnight it to you. Just get a bill of sale that out lines everything.
I guess we had different situations. I paid cash for 2 of the vehicles that had liens and I had to wait for them to release the title. One took 18 days and one took 12.
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Old 04-08-2018, 10:54 AM
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Kenny94945
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There's risk.
If the lien holder has a local office that would help.
You pay the bank, then pay seller balance.
But where the title.
Seller will have it.
Needs to be signed off by bank and signed by seller.
Maybe you need to travel to other state.
Good luck.
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Old 04-08-2018, 09:06 PM
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Originally Posted by artz66 View Post


banks will release Title if the funds can be varified or itís paid off with cash. I think the last 6 vehicles I bought all had liens. It isnít that big of a deal at all. If you pay with cashiers check some banks and credit unions will still wait for it to clear(7-10 days) before releasing the title. You can have them over the seller overnight it to you. Just get a bill of sale that out lines everything.
That's exactly what I just did. It sucked waiting 10 business days for the check to clear. The car was just sitting in my garage tempting me to drive it. Was quite relieved and excited once the seller sent me the title.
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Old 04-08-2018, 10:05 PM
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So, I should give seller two checks, one to cover the lien, and the second to make up rest of selling price. Then write out a sales agreement signed by both of us. I then take possession of the car and then the seller and/or lien holder (bank) will send me a clear title?
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Old 04-08-2018, 10:51 PM
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Originally Posted by farmington View Post
So, I should give seller two checks, one to cover the lien, and the second to make up rest of selling price. Then write out a sales agreement signed by both of us. I then take possession of the car and then the seller and/or lien holder (bank) will send me a clear title?
What did WF say?
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Old 04-08-2018, 10:59 PM
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Originally Posted by farmington View Post
So, I should give seller two checks, one to cover the lien, and the second to make up rest of selling price. Then write out a sales agreement signed by both of us. I then take possession of the car and then the seller and/or lien holder (bank) will send me a clear title?
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Old 04-09-2018, 01:17 AM
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Originally Posted by farmington View Post
So, I should give seller two checks, one to cover the lien, and the second to make up rest of selling price. Then write out a sales agreement signed by both of us. I then take possession of the car and then the seller and/or lien holder (bank) will send me a clear title?
For the love of everything sacred, no! Have your financial institution write a letter of guarantee for the funds you've secured. Either go to their physical bank, or deal with them over the phone with the seller there. Send them the funds directly yourself. They will release their lien with the state. Then give the remainder to the seller. Be sure to get his/her signature on the title and on a bill of sale. Not a bad idea to get it notarized too. For state specific questions about titling, I would either call your local PD or a trooper, or your local tag office and nearest tag office to where the car is located. And please don't give the seller two checks and expect them to do the right thing and send it in for you.
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Old 04-09-2018, 01:32 AM
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Originally Posted by Gator6977 View Post
And please don't give the seller two checks and expect them to do the right thing and send it in for you.
It all depends on the seller and bank. The Vette I bought was owned outright by the seller. I sent him the cashiers check with signature. He deposited I had my bank contact his bank and the released the funds and I went 6hra to pick up the car that weekend. The easiest way is to just go look at the car and then call your bank for a wire transfer. At 35 Iíve bought and sold 38 cars and 53 motorcycles. Cash at the bank is the best policy but I donít like carrying 30k+ In cash on me.
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