buying a car with lien

[2fast4me]

I am buying a used car with a bank lien on it.
The owner said he'll go to the bank and pay it off and get a letter from the bank.

So in the end, I'll receive the signed registration and the bank letter? is this all there is to it?

[gretz]

liens = bad news

[rage2]

US car? Avoid cars with liens at all costs for US cars.

[Redlyne_mr2]

Originally posted by rage2
US car? Avoid cars with liens at all costs for US cars.

:werd:

If it's a canadian car you just need a letter of release from the finance company, and the signed portion of the registration. When you register the car provide the registries with a copy of the lien release letter so they can pull it from their database.

Edit: sorry for the original spelling, it was brutal

[2fast4me]

Originally posted by Redlyne_mr2


:werd:

If it's a canadian car you just need a letter of release from the finance company, and the signed portion of the registration. When you registrer the car provide the registries with a company of the lien release letter so they can pull it from their database.


Thanks....that's what I thought.

[Tik-Tok]

Originally posted by 2fast4me
I am buying a used car with a bank lien on it.
The owner said he'll go to the bank and pay it off and get a letter from the bank.

So in the end, I'll receive the signed registration and the bank letter? is this all there is to it?


I would insist on going to the bank with him, and be right there to see the lien paid off, and receive the letter, otherwise he might just take the money and run, leaving you with the bag.

[schocker]

Originally posted by gretz
liens = bad news
:werd:
You would have to be there to make sure that the loan is getting paid off with your money. I never deal on cars with leins just for that fact as they are kind of sketchy.

[funkedelic]

Originally posted by schocker

:werd:
You would have to be there to make sure that the loan is getting paid off with your money. I never deal on cars with leins just for that fact as they are kind of sketchy.

how is it sketchy? Doesn't a lien just mean that the car belongs to the bank? Most people get loans to pay for newer expensive cars, so somebody having a lien on a newer car wouldn't be that surprising right, since most people don't buy their car cash and make monthly payments..

[schocker]

Originally posted by funkedelic


how is it sketchy? Doesn't a lien just mean that the car belongs to the bank? Most people get loans to pay for newer expensive cars, so somebody having a lien on a newer car wouldn't be that surprising right, since most people don't buy their car cash and make monthly payments..
well it can be hard to deal with because they do not own it as you said and some will just take your money and not put it towards the loan and just keep it. i have been told by banks not to pursue cars with leins for that matter.

[lint]

Originally posted by schocker

:werd:
You would have to be there to make sure that the loan is getting paid off with your money. I never deal on cars with leins just for that fact as they are kind of sketchy.

All I've ever had to do get a registered check in the name of the company/bank that holds the lien. Whatever is left over the bank will cut a check to the seller for.

When you buy a financed or leased vehicle, it will most likely have a lien on it.

[ragu]

Originally posted by Tik-Tok



I would insist on going to the bank with him, and be right there to see the lien paid off, and receive the letter, otherwise he might just take the money and run, leaving you with the bag.

+1

[cam_wmh]

All I've ever had to do get a registered check in the name of the company/bank that holds the lien. Whatever is left over the bank will cut a check to the seller for.
Exactly!
This is quite simple, when it's a local car, yet people still find a way to make the purchase of a car w/lien complicated.

[dannie]

The poster two above me has it correct. Make the money order in the name of the bank so he can't cash it and run with the money. Once you get the clearance letter from the bank, you can have the owner sign the gov bill of sale and under conditions, put "lien to be removed within 30 days or full monies returned to buyer."

The lien isn't immediately removed, and the registry will not remove the lien with a release letter. The bank has to remove it on the Personal Property system.

[Smokem]

So in the situation where the lien has not been paid off but not removed yet and you wish to register the vehicles, is a bill of sale and a bank letter sufficient to get your plates and registration today or would one have to wait until it clears the system (I was told 10 business days)?

[Wehbeast]

Originally posted by Smokem
So in the situation where the lien has not been paid off but not removed yet and you wish to register the vehicles, is a bill of sale and a bank letter sufficient to get your plates and registration today or would one have to wait until it clears the system (I was told 10 business days)?

You can still register the car normally AFAIK. You won't know the car has a lein on it unless you actually run a lein check on it

[dannie]

Having a lien on the vehicle will not prohibit you from registering it. The registry does not check for liens at the time of registering. That being said, if the vehicle was a leased one and the owner never removed the lease company; the registry will tell you that there is a leasing company on there and that you should have it removed.

[Smokem]

Thanks for the info guys. Another :thumbsup: for beyond!

Dannie, took your advice and put that "lien to be removed within 30 days or full monies returned to buyer" clause - excellent idea.

We both went to the bank where she paid off the loan and got the bank letter, so i called the registry and according to them I should be able to register right away...

Only thing left is now the onus is on the seller to get a lien check within the 30 days to satisfy the clause and have it all go through. Once she does this (at her cost obviously because of the wording of the bill of sale) and faxes me a copy, then it should all be finalized.

[dannie]

Good. Enjoy the new car!!! :)