Buying 4R with a lien on it.

I started another thread asking about advice for buying a modified 4R.
We couldn’t agree on a price but he called me back the next day and accepted my offer.
Now I have a question about the purchase process. I’ve never bought a vehicle from an individual that still owed money on the vehicle I’m purchasing. How does that work?
I’m not comfortable paying him and trusting he will pay off the loan and send me the title later. But if he needs my purchase money in order to pay the credit union so he can get the title, what’s the solution? Unfortunately we don’t know each other, he seems like a nice guy and I don’t think there’d be any problems, but then again that’s what pretty much every person that has ever been scammed has said.
Hoping someone on here will have run this rabbit before, because I have not and don’t have a clue.
Thanks

 

I wouldn't do this unless you sat there with him at his credit union and they walked you through the process. There are a ton of 4runners out there. Find a paid off one or buy from a reputable dealer.

 

I cosigned for a relative last march and hes's been making timely payments. Still I lose sleep over it some nights. No one is nice enough for me to trust with 30+k$.

 

Can you meet them at the credit union? If you need to take about a loan, ask your lender how they would take care of it. Or contact the current lien holder and see what they say.

 

Funny I thougt this was about deiver side lean initally

 

Go to the credit union together. You’ll need two checks: one for the 10 day payoff quote, and one for the remainder of the money you will pay him.

Have someone who works in the credit union verify everything and make sure that the title will be sent to you. Make sure you have a bill of sale, etc.

Frankly, you should call his credit union and have them explain everything to you.

 

Yes. Because OP used the wrong word!

 

This!

Don't leave it up to anyone but yourself. He may be a really cool guy but CYA.

 

I too, thought this was about a driver's side lean, not a lien on the vehicle. Good luck OP.

 

It’s lifted on the left and squatted on the right! The American Driver Squat! (or Lunge?)

 

This is fairly common. Just call his credit union ahead of time and they will let you know what is needed.

 

Next we'll hear "how can I fix the driver's side lien?' and we'll be right back to square one. There was a time when if you wanted a real answer, you used real words in your question. Not so much in the age of spell check.

 

easy, put some gold bars on the passenger side.

 

Some of y'all are funny. Believe it or not, a lot of people finance their vehicles and have liens - it's not a bad thing. When you purchase it, the Lien is satisfied (paid) and it is released right then and there, you have to have trust in the Credit Union, bank, or Financial Institution. I have purchased and sold too many vehicles to count with liens and never once had an issue.

 

I did this years ago and the way we did it was sign a sales contract at the credit union and had it notarized. I gave him the money in a cashier's check, he paid it off on the spot, and 20 minutes later the CU gave him/me the title. Just make sure to explicitly spell out the terms and steps in the contract (with dates!) before any money changes hands. Also make sure the CU can give you the title or evidence of digital title release before you start.

@Technologic80 is on point. Liens are crazy common in private sales and the fact it's a CU and not some major financier without a physical presence makes it even easier.

 

NEVER give money to the seller and hope he pays the lien holder. Both of you go to the bank who financed and do the money transction with the financing bank. Trust me on this

 

You do NOT need 2 checks, don't need to do anything special. I don't know why people always make this hard. I've done this a million times buying and selling. I have issues with keeping vehicles/boats for more than 3-4 years.

Assuming you are paying cash and not taking a loan on your end. This will go 100x faster if he lets his bank know what date and time you guys are coming and they have someone ready for you guys. They can prep the bill of sale ahead of time.
1. Take 1 check to his bank and meet with his loan rep.
2. You give the bank the check.
3. Bank will do the bill of sale.
4. Bank will give the balance to the old owner. Deposit or cash its on him.
5. Bank will get you the title. Most don't keep it on site at the branch so it takes couple days. Some mail some make you pick it up.
6. You take the keys right there.

This should literally take 30 minutes if the bank has their shit together.

If its a loan then just do everything at your bank. Your bank will take care of everything.

 

But i don't think the issue is trusting the financial institutions. But trust in the private party to pay it off and you're out the cash and the repo truck.

That's why we're telling him to pay the bank /CU and not the seller. He'll be paid from the overage from bank.

 

you are correct. You dont give money to a unkown third party and hope things happen.

 

I would start with at least two, two-party, out -of-state checks. I'd have him try to cash one at the grocery store, and you take the other to a financial institution neither of you bank with...j/k. As others said, just call his credit union and they'll handle the paperwork, theyll take the money and then deposit what ever is left over into his account, easy as pie.

 

I’d have the title in hand before I handed over the money. Depending on your state, getting the title from the lender can take awhile.

 

You realize this will never work?

How is the seller going to get the title without the money to pay off his loan? If he had the money he would have title in hand already.

 

If there is a lien, bank owns the 4Runner, not the guy who is driving it. Deal with the bank.

 

Not my problem to figure out. I’m just stating the facts in my area.

 

That’s not entirely accurate.

Payoff has to be processed, and the lien released. In some states, this will take a few weeks.

 

That is not factually true.

 

that is correct

 

um yes that is true. You dont own the vehicle until its paid off. Thats why the bank has the title and you dont when there financing involved.

 

A lien is not ownership. A lien is a claim against ownership.

Those are two totally different things.

If liens were ownership, the lender would owe property taxes against whatever the lien was against (house, car, etc.) when assessed by the local jurisdiction.

If liens were ownership, the lender would be able to possess the vehicle or house at any time for any reason.

If liens were ownership, it would be impossible to obtain funds via a HELOC or home equity loan in the 2nd lien position on your house.

If liens were ownership, then foreclosure wouldn’t exist, because you can’t foreclose on property that you already own.

I could go on, but you are absolutely wrong on this one.

In some states, the lien holder may retain a paper title, but that isn’t every state, and physical possession of the title does not constitute ownership.

 

i’ve worked in commercial and consumer financing business since 1997 in the Litigation and Recovery Dept and we can repossess equipment at day 1 of a default of a payment or any breach of contract to the terms and conditions of the contract because we own the equipment.

Dont pay a car bill or house and see what happens. First you’ll receive a final demand for payment giving you 10 days to cure the default, when the default is not cured a repo agent will come recover the collateral or foreclosure action will take place, then suit will commence against you for any deficiency balances that remain due to the bank after the collateral or home is sold in a commercially reasonable manner and so on and so forth.