How Do You Sell a Car if the Bank Still Owns it
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G
Guest
·There should be a title it would just have a lien on it. tell friend talk to bank tell them what is happening as soon as he receives payment for the car he pays off the note and the bank releases the lien. then the car can be transfered.
Last June, reluctantly sold my motorcycle. I still owed around 3000 on it and had to deal with this. What ended up happening, is the future owner ended up getting financing to buy the bike. In turn, the bank he was getting financing from wanted to be SUPER sure that the bike was properly paid off and ownership was transferred to the new owner w/ the lein to his bank. They made the appropriate phone calls to my bank to verify exact payoffs, sent the check to the bank, and made sure the title was transferred into his name. Overall, the bank made the process quite easy.
I say, talk to his bank and let them know he is selling to a private party. They will tell him of the payoff amount as of a certain date. Then, if the prospective buyer is financing the purchase, he will need to tell the bank how much your friend owes on the car. If the prospective buyer is paying more than what is owed on the car, two checks will be cut. One to the bank for the remaining balance of the car and another to your friend.
Pretty simple.
Sean
I say, talk to his bank and let them know he is selling to a private party. They will tell him of the payoff amount as of a certain date. Then, if the prospective buyer is financing the purchase, he will need to tell the bank how much your friend owes on the car. If the prospective buyer is paying more than what is owed on the car, two checks will be cut. One to the bank for the remaining balance of the car and another to your friend.
Pretty simple.
Sean
Some people do what's called "take over payments" -- not good.
If the bank doesn't completely move the loan into the buyer's name, the original holder can still be held responsible.
You want to get a release of liability for the vehicle - or have the buyer's bank pay off the loan.
I've heard of, seen, where someone sold something on a take over payments agreement, then get sued for the balance even though the property was long gone.
Be careful.
If the bank doesn't completely move the loan into the buyer's name, the original holder can still be held responsible.
You want to get a release of liability for the vehicle - or have the buyer's bank pay off the loan.
I've heard of, seen, where someone sold something on a take over payments agreement, then get sued for the balance even though the property was long gone.
Be careful.
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447 Posts
I did this once and it was quite easy. I took the guy that wanted to buy it to my bank and when he handed over the money, they stamped the title paid and notorized it on the spot.
I believe his bank had cut him a check with his name and my banks name on it.
I believe his bank had cut him a check with his name and my banks name on it.
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7,901 Posts
Re: How Do You Sell a Car if the Bank Still Owns i
I have done this, in our case we sold it for the note so we could order the TJ.
Take everything to the bank where the note is financed, pay off the note with their money. The bank will sign the title to you, indicating it's paid off. Make them out a bill of sale for the vehicle, and give them everything.
Just be careful of the hidden fees, or fine print, we paid it off early and were hit with a surcharge we had to pay out of pocket.
I have done this, in our case we sold it for the note so we could order the TJ.
Take everything to the bank where the note is financed, pay off the note with their money. The bank will sign the title to you, indicating it's paid off. Make them out a bill of sale for the vehicle, and give them everything.
Just be careful of the hidden fees, or fine print, we paid it off early and were hit with a surcharge we had to pay out of pocket.
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