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  1. #1
    JoeBo is offline Junior Member
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    Question Buying a car with a lean on it. No Title?

    Hello,
    I am about to buy a car from a private seller (individual). The car is registered in Illinois. However, the car has a lean on it. The loan is from Chase bank, so Chase keeps the title of the car (in Texas).
    How should I execute the transaction since the seller cannot sign up the title to my name in the moment of the sale. I called Chase and they told me that I will have to pay the car, they will send the title to the seller, hi will sign it and hand it to me along with the car one week after I pay Chase. What about if the seller does not pay his part of the loan, if there is a loan amount remaining after I pay the purchase price?

    The seller also says that he will sigh a <bill of sale> at the time of the payment, but is it enough? Bill of sale is not even required by the Illinois DMV when transferring a title. The only thing that is required is the original title, signed by the seller.

    I am worried about that kind of transactions. I do not want to end up paying somebody's loan and end up with nothing in my hands. I do not want to end up suing somebody over such trivial thing either.

    What is the proper procedure in that kind of transactions, when the car has a lean on it and its to be paid by the buyer?

    Thank you very much!
    Happy holidays and happy new year!

    Joe
    Chicago, IllinoisWhat is the name of your state (only U.S. law)?
  2. #2
    swalsh411 is offline Senior Member
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    The short answer is that there is no absolutely positive way for you to guarantee not being ripped off. Too much can go wrong and you're taking a risk with your money. What is so special about this car that you cannot find one with a clean title?

    So you will pay off another person's loan and then hope they transfer the title to your name? Does that really sound like a good idea to you? Why do you say in one sentence that Chase said YOU will pay them the balance, then in the next you ask what happens if the seller does not pay THEIR part of the loan? That is confusing.
  3. #3
    JoeBo is offline Junior Member
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    Thank you for the quick response!

    Quote Originally Posted by swalsh411 View Post
    The short answer is that there is no absolutely positive way for you to guarantee not being ripped off. Too much can go wrong and you're taking a risk with your money. What is so special about this car that you cannot find one with a clean title?
    Well, I like the offer, the car etc. It might sound weird, but it is not so easy to find a deal, a car in a good shape, no accidents, clean title, even nowadays.
    The owner seems to be a decent person, but I don't buy it. I would like to be sure what might go wrong. Do not want to take risks.

    Quote Originally Posted by swalsh411 View Post
    So you will pay off another person's loan and then hope they transfer the title to your name? Does that really sound like a good idea to you?
    Well, that is why I am seeking an advice, because it doesn't sound good enough to me.


    Quote Originally Posted by swalsh411 View Post
    Why do you say in one sentence that Chase said YOU will pay them the balance, then in the next you ask what happens if the seller does not pay THEIR part of the loan? That is confusing.
    I said that, because I am not really sure whether my payment will cover the balance of his loan and will clear the lean. However, I assume that I will be able to get this information at the bank, in the time of the payment.

    My ultimate question is: What is the proper procedure in that kind of transactions, when the car has a lean on it and its to be paid by the buyer?

    Thanks again!
  4. #4
    BL
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    Quote Originally Posted by JoeBo View Post
    Thank you for the quick response!


    Well, I like the offer, the car etc. It might sound weird, but it is not so easy to find a deal, a car in a good shape, no accidents, clean title, even nowadays.
    The owner seems to be a decent person, but I don't buy it. I would like to be sure what might go wrong. Do not want to take risks.


    Well, that is why I am seeking an advice, because it doesn't sound good enough to me.



    I said that, because I am not really sure whether my payment will cover the balance of his loan and will clear the lean. However, I assume that I will be able to get this information at the bank, in the time of the payment.

    My ultimate question is: What is the proper procedure in that kind of transactions, when the car has a lean on it and its to be paid by the buyer?

    Thanks again!
    Contact your State's DMV .

    I'd walk away without a Title and a satisfaction letter the lean is paid off .

    Really .
  5. #5
    JoeBo is offline Junior Member
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    What do you think about that find, guys?

    [url=http://www.edmunds.com/advice/selling/articles/93820/page009.html]10 Steps to Selling Your Car[/url]

    10 Steps to Selling Your Car
    Step 9: Finalize the Sale
    By Philip Reed, Senior Consumer Advice Editor

    Rules governing the sale of motor vehicles vary somewhat from state to state. Make sure you check with the department of motor vehicles (DMV) in your state, and keep in mind that much of the information is now available on DMV Web sites.

    When selling your car, it's important to limit your liability. If someone drives away in the car you just sold, and they get into an accident, can you be held responsible? There are two ways to deal with this concern.

    Once you have the money from the sale (it's customary to request either cash or a cashier's check), record the odometer reading and sign the car's title over to the buyer. In some states, the license plates go along with the car. A new title will be issued and mailed to the new owner. Additionally, in most states, a release of liability form can be downloaded from the DMV web site. Fill this out, along with the car's mileage, and mail it in as soon as the car is sold. This establishes the time at which the car left your possession.

    But what if you still owe money on the car, and the bank is holding the title? One way to deal with this is to conclude the sale at the bank where the title is held. Call ahead and have the title ready. Then, once money has changed hands and the bank has been paid the balance of the loan, sign the title over to the buyer.

    In some cases, however, an out-of-state bank might hold the title. In this instance, it is recommended that you go with the buyer to the DMV and get a temporary operating permit based on a bill of sale. Then, after you pay off the balance of the loan with the proceeds from the car sale, have the title mailed to the new owner. Sign it over to the new owner and the transaction is complete.

    Finally, remember to contact your insurance agent to cancel your policy on the vehicle you have sold (or transfer the coverage to your new car).

    Before your car drives away for the final time, take a last look through the glove compartment, the trunk and under the seats. You might find some long forgotten treasures you misplaced years ago.
    Does it sound right to you?
    Last edited by JoeBo; 12-30-2009 at 06:42 PM.
  6. #6
    BL
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    Quote Originally Posted by JoeBo View Post
    What do you think about that find, guys?

    [url=http://www.edmunds.com/advice/selling/articles/93820/page009.html]10 Steps to Selling Your Car[/url]
    First bolded paragraph sounds like a no brainer .(In other words ,it should be a sure transaction -with the Judgment satisfaction given by the bank for DMV purposes ).

    The bolded second paragraph , would still NOT insure title transfer nor a letter of satisfaction . It's left up to the seller to get it all to the buyer.

    Not guaranteed.
  7. #7
    JoeBo is offline Junior Member
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    That you for the input, BL!
    That is what I thought.
    Actually, this article was sent to me by the seller and it says that it gets the seller party covered, not mine.
    This is what I have found on the same site about my party (the buying party):
    [url=http://www.edmunds.com/advice/buying/articles/78387/page010.html]10 Steps to Buying a Used Car[/url]

    When you buy a car from a private party, you will probably be asked to pay with a cashier's check or in cash. But before money changes hands, request the title (sometimes called the pink slip) and have it signed over to you. Rules governing vehicle registration and licensing vary from state to state. Check the registry's Web site in your state.
    The seller mentioned that I can arrange for a small loan with Chase (which I can pay off in few weeks), so the title will never need to leave Chase and will be assigned to me by the bank when I pay off the loan.
    This does not sound right to me either. Isn't it true that the title is on the seller's name with a lean indication on the front side and held by the bank?
    Tell me what to do.
  8. #8
    BL
    BL is offline Senior Member
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    Check with your local DMV and a chase manager.

    I wouldn't put my 2 cents on what a seller states .

    In my State the seller/owner retains the title with Lean printed on it .

    In order be able to change titles with DMV ,the owner is required to bring the title signed over with a letter of satisfaction lean paid by the lender( usually provided by the seller along with the title ) at time of sale .

    The buyer then takes both to DMV .

    The seller wanting you to get a loan from chase is ridiculous to pay off the lean .

    Go with # 1 bolded .

    Sure you could always approach the bank about a loan to pay off the lean .

    What guarantees do you have the seller will then be honest ? NONE.

    It still sounds awful fishy . I wouldn't even be contemplating a bite.
  9. #9
    JoeBo is offline Junior Member
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    Thank you for the thorough response, BL!
    I will definitely consider your opinion.

    If there are any other concerns or other options available that come in mind, on how to handle this situation, please let me know.
    Last edited by JoeBo; 12-30-2009 at 07:57 PM.

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