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View Full Version : Buying a bike that has a loan - title questions



Kosher
02-19-2013, 06:11 PM
Guys - a buddy of mine is buying a killer 2011 Street Glide, but the seller has a loan on it.

How does the title transfer work in transactions like these?

RedneckMedic
02-19-2013, 06:24 PM
I believe he would have to pay off the loan get a release of lien letter from whoever supplied the loan then the SOS will authorize the title transfer. Other than that he would have to take over payments and be approved by the lender.

Thruxtonbill
02-19-2013, 06:24 PM
You'll be paying the balance of to the finance co, they will send you a release of lien. then off to the SOS to have title put in you name.

Kosher
02-19-2013, 06:25 PM
You'll be paying the balance of to the finance co, they will send you a release of lien. then off to the SOS to have title put in you name.

How does that work on a Sunday when the guy is going to trailer it up to MI to the buyer?

Thruxtonbill
02-19-2013, 06:43 PM
So it's an out of state title? If so I would be very careful. Find out if it's a title holding state, unlike michigan some states the lien holder has the title. Regardless find out who the lien holder is and some phone calls will have to be made. I assume the seller has some cash coming? Did he say he will have title in hand? Lot's of unknowns here. PM me if you want we can discuss over the phone.

Gas Man
02-19-2013, 06:52 PM
Find out where it's financed and see if he can meet the seller at a branch or service center on a biz day.

Get a check and make it payable to the lien holder and the rest made to the seller.

If he's financing it, his bank can contact the lien holder and could wire the money. Wiring it would be the best way and fastest way to get the lien release. Even a cashiers check cold delay the lien release till the check clears. Cashiers check is not like it use to be, they are forged and many banks/credit unions treat them not much better than personal checks.

Also a bill of sale from the seller would always be a great idea.

Your bud can also get a copy of the lien release and contact the lien holder and ask for payoff and which form of payment they would prefer.

Its just not that simple anymore these days.

Kosher
02-19-2013, 07:29 PM
Find out where it's financed and see if he can meet the seller at a branch or service center on a biz day.

Get a check and make it payable to the lien holder and the rest made to the seller.

If he's financing it, his bank can contact the lien holder and could wire the money. Wiring it would be the best way and fastest way to get the lien release. Even a cashiers check cold delay the lien release till the check clears. Cashiers check is not like it use to be, they are forged and many banks/credit unions treat them not much better than personal checks.

Also a bill of sale from the seller would always be a great idea.

Your bud can also get a copy of the lien release and contact the lien holder and ask for payoff and which form of payment they would prefer.

Its just not that simple anymore these days.

True, its not. The guy is trailering the bike up from IN on Sunday to do the deal. Not sure how that would work

05chop
02-19-2013, 07:39 PM
Can you have seller photocopy title email to buyer then contact lien holder by phone to see if its a legit bike.

Gas Man
02-19-2013, 10:18 PM
I would definitely work on doing the leg work on contacting the lien holder before the weekend.

Kosher
02-19-2013, 10:19 PM
I would definitely work on doing the leg work on contacting the lien holder before the weekend.

Good advice

detdrbuzzard
02-20-2013, 07:24 AM
i wouldn't buy it until it was paid of and the guy had the paperwork or something saying that there was no lien on the bike

Gas Man
02-20-2013, 11:34 AM
But the guy can't pay it off with out the purchaser's money.

Thruxtonbill
02-20-2013, 12:43 PM
i wouldn't buy it until it was paid of and the guy had the paperwork or something saying that there was no lien on the bike

Trying to be realistic here.

Remo
02-20-2013, 04:36 PM
i wouldn't buy it until it was paid of and the guy had the paperwork or something saying that there was no lien on the bike

^Pretty much this, the only way I will buy a bike with a lien is if it's a local seller and the lien holder is local. This way both the seller and I can go up to the bank, I pay the bike off and get the title on the sport. It's hard to trust anyone these days, let alone a complete stranger.

Remo
02-20-2013, 04:38 PM
Is a financial institution still holding the title to the bike or does the seller a stamped title (shows a lien on it)?

Kosher
02-20-2013, 04:40 PM
Is a financial institution still holding the title to the bike or does the seller a stamped title (shows a lien on it)?

Good question, will ask

Remo
02-20-2013, 04:52 PM
Can you have seller photocopy title email to buyer then contact lien holder by phone to see if its a legit bike.

Financial institutions will not talk to anyone but the borrower regarding any outstanding loan, unless it's a credit reporting agency. The only thing the might be able to do is confirm they have a lien on the said vehicle.

Also, as stated previously, only make the check to the lien holder.

Gas Man
02-20-2013, 05:26 PM
And this is why buying used from a dealer is sometimes easier.

Kosher
02-20-2013, 06:33 PM
I think they are going to slow this thing down, the guy has the week after next off, he's going to bring it up during biz hours, my buddy will wire the credit union to pay it off and they will send him some sort of temporary title or some such - sounds like its working out...

Gas Man
02-20-2013, 08:52 PM
That's good.