best way to make sure a lien is cleared

[03ozwhip]

Getting a new car (new to me) on Saturday and it still has a lien on it for less than what I'm paying, what is the best way to get this cleared?

I've never bought a vehicle privately with a lien on it before. TIA.

[Aleks]

Originally posted by 03ozwhip
Getting a new car (new to me) on Saturday and it still has a lien on it for less than what I'm paying, what is the best way to get this cleared?

I've never bought a vehicle privately with a lien on it before. TIA.

Write a draft for the amount of lien to the lien holder, rest to owner of car. Go with owner to lien holding institution or mail draft to same yourself with car VIN and request to pay out lien.

[03ozwhip]

Could we not just go to the bank?

[E46..sTyLez]

Originally posted by Aleks


Write a draft for the amount of lien to the lien holder, rest to owner of car. Go with owner to lien holding institution or mail draft to same yourself with car VIN and request to pay out lien.

This is correct. I've done it a couple times.

I've had my bank pay BMW finance directly before, then cut a cheque to the seller for the balance. Seller didn't even see about $28,000 of the payment, it just went directly to the lien holder.

If the sellers lien is through a bank, then by all means go to a branch and clear it up right then and there. That's how it went for me when I sold my sti. The guy came with me to TD bank and we cleared the lien with his cheque.

[spikerS]

Originally posted by 03ozwhip
Could we not just go to the bank?

Yup. I have done this before with a vehicle I sold. I took the purchaser with me to the bank, bank gave them a statement on what I owed. Purchaser got a bank draft, presented it to my bank, and my bank immediately gave him a letter that they were paid, and had no further interest in the vehicle and lein would be removed.

Easy peasy.

[shadowz]

Originally posted by 03ozwhip
Could we not just go to the bank?

If he does owe the bank instead of say (honda finance) you can get record of him clearing that lien at the bank.

[03ozwhip]

Thanks guys I will talk to buddy about it.

[dannie]

Everyone has been bang on with their response. The only thing I have to add is that sometimes paperwork gets lost, bank employees get lazy or the request to remove lien isn't completed.

It should take less than 3 business days to remove the lien. I'd suggest going and running a lien search two weeks after the lien has been paid. I can't tell you how many times we see that ball dropped.
If it's not removed, go back to the bank.

[Pacman]

Originally posted by dannie
Everyone has been bang on with their response. The only thing I have to add is that sometimes paperwork gets lost, bank employees get lazy or the request to remove lien isn't completed.

It should take less than 3 business days to remove the lien. I'd suggest going and running a lien search two weeks after the lien has been paid. I can't tell you how many times we see that ball dropped.
If it's not removed, go back to the bank.

THis happened on a car I bought in September and Dannie helped me out with it.

Owner of the car paid off the car loan in June. I ran a carproof report in September and it was showing a lien on the vehicle. I asked the seller of the car to get me a letter from the bank stating it was free and clear, and then called the bank directly to confirm.

I should probably run a lien check now to make sure the lien has been cleared, but I suspect the bank would be in contact me with if it was still on there.

[mr2mike]

Keep all your paper work and also as others said, document what is owing in the letter and document what was to happen and have the bank manager sign it.