just wondering how the title process works when buying from a private seller and they have not yet paid off the loan. is the title signed over to me? do i have to pay off the rest of their loan, or give them the money??? just wondering cuz i may be buying from a private seller this week. thanx, -Anthony

 

Contact the seller's lender, and let them guide you through th transaction. Or, assuming tht you are also getting a loan, ask YOUR lender what the correct procedure is

The sell cannot actually giove yu good title. And the lender isn't going to release theri lien until the balance is paid.

Its normally paid from the proceeds of your purchase money. And if the seller owes more than the purchase price, then he will have to pay the difference before you can get good title. And your lender is not going to release the purchse money unless THEY are getting a lien on a clear title.

bill

 

I don't know for sure, but my guess is that you have to get your own loan to pay them. They don't own the car, the company that they have a loan with does. So you have to get a loan to pay the full price they want for the car. However, they can't transfer the title to you (if you paid cash), or to the company that now holds your new loan until they pay off their loan. Granted it could be the same company but you can't just transfer a loan. You're credit comes into play and thus you must apply for a loan yourself.

Most insititutions have a used car loan avalible. I'm pretty sure you send them a photocopy or something of the registration or something to proove the car exsists, then they loan you whatever you need to buy the car. You pay the guy for the car, he uses that money to pay off his current loan, and then company that holds his loan transfers the title to the company that holds your new loan.

 

i recently bought my z from a private seller. the seller will need to contact his bank and request a 10 day payoff letter with per diem and a copy of the title front and back. the vehicle still had a lien of 19.1k and i got a loan for 15k. i had to put the other 4.1k in the account that they open, when the funds meet the payoff, they will make a check out to the previous company that holds the title. after that it was just signing the bill of sale and etc. YOUR lender will be the title holder until you pay off the loan. it was pretty painless since the bank did everything.