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How can I sell an automobile with a lien?

beneteaubeneteau Member Posts: 8,552 ✭✭✭
edited March 2015 in General Discussion
I have a 2012 Camry that I'm thinking about putting up for sale. According to KBB and NADA book prices, I should have around $10K equity in the car.

Now without having to pay the payoff amount (don't have that amount of money available) to obtain a clear title how can I proceed with the sale of this car if I had a buyer?

Suntrust Bank holds the title which, I think, is in NC.
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  • select-fireselect-fire Member Posts: 69,524 ✭✭✭✭
    edited November -1
    Get the buyer to go to the bank with you. They pay it off and you keep the balance of the sale. Bank gets title to the buyer.
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  • beneteaubeneteau Member Posts: 8,552 ✭✭✭
    edited November -1
    quote:Originally posted by select-fire
    Get the buyer to go to the bank with you. They pay it off and you keep the balance of the sale. Bank gets title to the buyer.


    The title is in NC I'm in Mississippi. There's only Suntrust branches in the area; therefore, he wouldn't get the title immediately and I doubt any buyer is gonna wait days for a title after he hands me the funds.
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  • cbxjeffcbxjeff Member Posts: 17,637 ✭✭✭✭
    edited November -1
    I agree with s-f. Twice, when I was rebuilding cars as a sideline, I would buy a car from a private party and would go with him to his bank, pay in cash (in front of the teller), get the bank signed off title, and the seller gets the difference.
    It's too late for me, save yourself.
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  • select-fireselect-fire Member Posts: 69,524 ✭✭✭✭
    edited November -1
    quote:Originally posted by beneteau
    quote:Originally posted by select-fire
    Get the buyer to go to the bank with you. They pay it off and you keep the balance of the sale. Bank gets title to the buyer.


    The title is in NC I'm in Mississippi. There's only Suntrust branches in the area; therefore, he wouldn't get the title immediately and I doubt any buyer is gonna wait days for a title after he hands me the funds.





    Take them to the local Suntrust Bank. Bank will do the paperwork for you and give him a receipt THEY will provide him with title. Most states require title in hand in 30-45 days. He will get a bill of sale and be fine.
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  • beneteaubeneteau Member Posts: 8,552 ✭✭✭
    edited November -1
    quote:

    Take them to the local Suntrust Bank. Bank will do the paperwork for you and give him a receipt THEY will provide him with title. Most states require title in hand in 30-45 days. He will get a bill of sale and be fine.


    All well and good; but, I would have to sign the title after the lien is paid. Would the bank branch "hold" the title until the buyer and myself meet again for my signature?
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  • SCOUT5SCOUT5 Member Posts: 16,181 ✭✭✭✭
    edited November -1
    Call the bank and ask them what the procedure is. If you are going to sell the buyer will be a lot more likely to go forward with the purchase if you can tell them exactly what needs done and how they will obtain the title. Telling a buyer you aren't sure, but maybe this or maybe that, will not go over well, having the facts will, call the bank.
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  • jltrentjltrent Member Posts: 9,344 ✭✭✭✭
    edited November -1
    quote:Originally posted by beneteau
    quote:

    Take them to the local Suntrust Bank. Bank will do the paperwork for you and give him a receipt THEY will provide him with title. Most states require title in hand in 30-45 days. He will get a bill of sale and be fine.


    All well and good; but, I would have to sign the title after the lien is paid. Would the bank branch "hold" the title until the buyer and myself meet again for my signature?


    The bank will get you to sign a Power of Attorney to be able to sign the title on your behalf. When I was a Bank Branch Manager I ran into situation like this from time to time and that was how I handled it.
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  • JamesRKJamesRK Member Posts: 25,670 ✭✭✭
    edited November -1
    I'm not 100% certain about this, but I think when you do the paperwork at the bank the bank sends it to DMV and they issue a new title and mail it to the buyer.

    I'm pretty sure the paperwork has to go through DMV no matter how or to whom you sell it.
    The road to hell is paved with COMPROMISE.
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  • beneteaubeneteau Member Posts: 8,552 ✭✭✭
    edited November -1
    I'll call Suntrust corporate office tomorrow.
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  • bpostbpost Member Posts: 32,669 ✭✭✭✭
    edited November -1
    You must get title to the new lien holder. Sun Trust will take 10 days to two weeks to release title after receiving funds paying off the note. The best way to handle it is bank to bank.
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  • select-fireselect-fire Member Posts: 69,524 ✭✭✭✭
    edited November -1
    quote:Originally posted by JamesRK
    I'm not 100% certain about this, but I think when you do the paperwork at the bank the bank sends it to DMV and they issue a new title and mail it to the buyer.

    I'm pretty sure the paperwork has to go through DMV no matter how or to whom you sell it.



    It is called a release of lien in order to get a new title issued. DMV will send the title after the bank releases the seller from the obligation. IF the new buyer has a lien on it the DMV sends the title to their bank and attaches a lien.
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  • MobuckMobuck Member Posts: 14,161 ✭✭✭✭
    edited November -1
    Lots of private party titled vehicle sales don't include a "title in hand transfer".
    Friend of mine sold a semi-trailer for $45K to an out-of-state buyer. Seller owed money on the trailer but demanded a $5K CASH upfront pmnt plus the remainder in a cashier's check. Gave the buyer a receipt and sent him down the road. Mailed the title next day.
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  • drl50drl50 Member Posts: 2,496 ✭
    edited November -1
    quote:Originally posted by SCOUT5
    Call the bank and ask them what the procedure is. If you are going to sell the buyer will be a lot more likely to go forward with the purchase if you can tell them exactly what needs done and how they will obtain the title. Telling a buyer you aren't sure, but maybe this or maybe that, will not go over well, having the facts will, call the bank.

    Absolutely. The bank holds title to the car, not you. You may physically have the cars title, but it is not clear.If you cannot pay off the loan, they need to sell the car, keep whats owed them, and pay you the balance. Doing it the other way around will be trouble. Confide in them. They have done this before. Here's a link that simplifies the answer, including the two state issue.
    http://www.cars.com/go/advice/Story.jsp?section=sell&story=sellLoan&subject=how_sell
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  • JnRockwallJnRockwall Member Posts: 16,352 ✭✭✭
    edited November -1
    He can send The payoff to the finance co with a bill of sell from you stating you haVe sold the Car clear and free to him for the amount owed. They should mail the title to Him.
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  • MG1890MG1890 Member Posts: 4,460 ✭✭
    edited November -1
    Good luck.

    The buyer will end up waiting for a clear title to be delivered to YOU, and then the clear title goes to the new owner. He waits with his car for this to happen (weeks or months), and trusts you to deliver the title.

    Without a clear title forget the private party sale. Go to a dealer and trade it.

    In New York, if I don't see a clean title or a lien release, I walk away.
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  • JamesRKJamesRK Member Posts: 25,670 ✭✭✭
    edited November -1
    This is getting way too complicated and it doesn't need to be. People buy and sell cars every day. Most of them are financed. The bank knows how to handle it. You never, I mean never get a clear title on the spot. Banks and car lots don't issue titles. DMV issues titles. When I bought the Tahoe I bought it in North Carolina, titled it in Virginia and financed it in Texas. Banks can and will do anything when there's a dollar in it, and it goes smoothly.

    Call the bank and tell them what you want to do and set up an appointment to get it done. You don't need to know the ins and outs of the banking business to sell a car.

    When I bought the Tahoe the Virginia DMV sent the bank the title after they got all the paperwork (about a week). VA DMV sent me the registration after they got all the paperwork including VA sales tax receipt.

    If I live long enough to pay it off the bank will send the title to the VA DMV and they will either stamp it "LIEN SATISFIED" or issue a new title without a lien. I'll get it about a week later.

    Even if you go to DMV in person you won't get a title the same day. It ain't gonna happen.

    The bank's name being on the title as lien holder doesn't mean the bank owns the car. It only means the bank is the lien holder, just like any other lien holder on anything else.

    Your name on the title along with any other owners of the vehicle means you own the car.
    The road to hell is paved with COMPROMISE.
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