I am looking at buying a used car from a private party but he still owes money and the title is at the hands of the bank. He said if i decide to buy it, we will both go to his bank (Chase) and I can make payments to the bank for however much more he owes.

My question is, how can i make sure that the vehicle title is indeed his name and not say his brothers or someone else's? Basically, how can the bank, Chase, make this transaction secure for me so that the seller cannot scam me? Also, do i get to drive the car home right after we get the deal done through the bank? If i write a check to the bank, i'd have to wait for the check to clear, same goes for wire transfer. The bank isn't going to give me the title right away and it will probably take a few days...

 

Meet at the bank. You have 2 checks. (cashier's check, certified check, or money order) One for the bank to pay off the loan and one for the owner for the rest of the price. At the bank, the seller fills out the title and/or registration indicating a sale and gives them to you. You take the car and papers and go to you Bureau of Motor Vehicles where you pay sales tax and title fee and they will give or mail you a new title and registration.

 

Here's what I did while buying my 07. It was the same situation except the seller's bank was Bank of America. So we went to a branch and I paid off the remainder of his lien and paid him the rest of the balance. I then did two things. First I took the pay off slip from the bank indicating a zero balance. Then I had typed up a statement requiring both of our signatures saying that once the title comes in the mail (because it was not stored on location) the seller will release the title to me. I had it notarized at the bank as well, and we each kept a copy. In the mean time I had possession of the car, although I could not drive it. That's basically the best way to do it when the title won't be released right away.

 

In most cases, the seller should be able to notify their bank (lien holder) in advance so the title can be on-hand for the sale, which simplifies the process since you can then walk out with the signed title. If that isn't possible with his particular bank and your timeframe, a notarized bill of sale should suffice once the title arrives for processing things at the DMV - but I'd call your state's DMV since their guidelines for handling bills of sale and vehicle titles may vary from the ones here in SC.

 

What happens if the title isn't on location and seller decides not to sign the title release and flees the country or something? i'd have already helped him pay off his loan and he's nowhere to be found.

 

It would be in his best interest to sign this since he isnt protected against any civil litigation as long as the title is his name. In other words, you do something stupid, he may end up paying for it.

I did a bank payoff and ended up having to wait a month before the title arrived, since he didnt prepare this beforehand. It seemed like an eternity but it eventually showed up. Best thing is to have the title ready for the sale to avoid any worry.

Definitely check with your state regulations, there are 50 different varieties out there.

 

The answer is in my post above: