Like the title says. I want to sell my truck, I can't afford the payment anymore. I owe under $10,000 on it and want to list it for $12,500. Now when I get a buyer, how does the title transfer happen since there is a bank lean on my truck? Do I give them the title with the lean on it, then call the bank and pay off the loan over the phone? How does this work?

 

Do you have the title? Your state may be different, but here, the leinholder gets the title and the owner gets just the registration until the lein is paid.

But regardless, I doubt any buyer would trust anyone enough to take a title with a lein listed and trust that the seller would take his money and pay off the lein.

I've never done this before but I would call the bank that holds the lein. Ask them what you need to do.

I suspect they will want the buyer to pay them directly, they'll release the title to the buyer and the remaining funds to you.

 

The last vehicle I sold with a lien on it, I had the guy make out a cashier's check for the exact amount to Ford Credit, and gave me the difference in cash. We then signed a detailed bill of sale and off he went with the truck. The title was mailed to me and once it came, I signed it over to him. It's a bit of work and takes a bit of trust on both sides but it isn't hard to do.

In MA the buyer can't register it until he gets the title in hand but I believe if you ask the finance company to expedite they will overnight it for a fee.

Also, this was 15 years ago before electronic banking was so common. You could probably wire the funds over and get your title even quicker. And if your bank is local, you may even be able to go right to their finance office and pick up the title (or get them to stamp it as released). Worth a phone call.

 

I did this once several years ago. The person that bought the car met me at the bank,wrote the check out to the bank,paid me the difference in cash,he got the title,went to DMV and got it transferred to his name all in one day. well,it took more than one day to get the title back from the state of course,but the whole process was done in a matter of hours.

 

If it's at a local bank, or even if you made the loan at a local branch of a national bank, chances are they have the title filed right there. I'm not sure how auto finance companies do it.
The first thing I would do is get a hold of the leinholder, find out where the title is, and see if you can get someone to physically put their hands on it. Titles do get lost, and it takes time to get one replaced.

 

When I bought my scooter a couple of years ago; I went to my local bank to get a loan for it. I told the loan officer that there was a lien on the scooter currently. As I understand from the officer..my bank sent a "wire transfer" to the other bank. The other guy was "liberated" from his payments and I got a payment book from my back a couple of days later. When I went to the DVM the registration shows my bank as the lien holder.

 

As you can tell by the responses...things are different in each state. It sounds like you have the title in your posession...with a lien attachment. Perhaps you should contact your states DMV and ask them...they're probably the definitive authority!!! Everyone else is just guessing.

 

Moved from GNAC.

 

I just bought my truck with a lien on it. My bank contacted the sellers bank. My bank got the title, he got a check that was left over from his payoff. His loan was paid off and my loan started.

 

OK I see that each state is different. I'm going to call my auto lender on Monday and find out exactly what needs to be done, and also the dmv. I want to get it listed as soon as possible. I have the title, with a lean attachment.
I see that thank you.

 

I shouldn't mention this but the truck I'm replacing it with is a Silverado ext cab 350, only because all the pre-97 Fords are junk. Sorry guys after 16 years of owning Fords I'm switching sides. Only temporarly though I'll be back. On a lighter note I'm sending my grand am to the junk yard tomorrow, its got a stuck valve at only 82K miles.

 

Hahahahahahahahahahahaha.......you crack me up Ken.

Have you ever contacted the Massachusetts RMV and

a) actually gotten a human person on the line....
b) without waiting on hold multiple hours....
c) and gotten them to give you an answer....
d) that was correct?

If you have then you should call back and try again. Almost guaranteed you will get an entirely different answer.

 

Some would argue you got that the wrong way around

I bought my Escort from a fella who had a loan on it. Basically walked into his back with him, paid them what was owed and give him the rest, left with the title which he signed over in the parking lot. Although in Iowa the lending institution holds the title until the vehicle is paid off.

 

Well good news. I sold my 4 wheeler today and after taking another look at my finances I decided to keep the F-150. I did call my lender and they said to talk to the dmv.