Any car dealers/wholesalers experienced with Liens

[Eddy123]

Im new to the car sales industry and I’m looking on insight on how to go about buying a truck with a lien in the safest possible way. Giving a person a cheque and expecting them to pay off the lien right after, doesn’t really sit right with me. Does anyone have experience doing this? And can give some advice on what’s the safest possible way to do it? Thanks

[Trochu]

Originally Posted by Eddy123

Im new to the car sales industry and I’m looking on insight on how to go about buying a truck with a lien in the safest possible way. Giving a person a cheque and expecting them to pay off the lien right after, doesn’t really sit right with me. Does anyone have experience doing this? And can give some advice on what’s the safest possible way to do it? Thanks

If you must buy a vehicle with a lien on it you can:

-Sometimes the loan has been paid but the lien hasn't been removed, talked to the bank and actually verify that there is a lien on it; and,

-Write the cheque out to the bank, they take their cut, to get the lien removed, and the seller gets the rest. I'd get written notice from said bank that lien has been removed.

[JBE]

Originally Posted by Eddy123

Im new to the car sales industry and I’m looking on insight on how to go about buying a truck with a lien in the safest possible way. Giving a person a cheque and expecting them to pay off the lien right after, doesn’t really sit right with me. Does anyone have experience doing this? And can give some advice on what’s the safest possible way to do it? Thanks

A friend of mine went with the seller to the place that held the lien and payed there.

[RandyBoBandy]

Originally Posted by Eddy123

Im new to the car sales industry and I’m looking on insight on how to go about buying a truck with a lien in the safest possible way. Giving a person a cheque and expecting them to pay off the lien right after, doesn’t really sit right with me. Does anyone have experience doing this? And can give some advice on what’s the safest possible way to do it? Thanks

Your best to contact KEN07VETTE (sp) from here

[tri777]

Myself, I'd be long gone from the purchasing of anything with a lien on it. Just not worth any headache(s)
that may come with it.

[liketoshoot]

Your only way to be safe is to get a letter of release from the lien holder

[thing]

Find out who holds the lien...usually a bank

Get an exact payout amount (seller will have to do this) The payout amount changes frequently due to interest. Don't get the amount and wait 2 weeks. Also find out who to make the draft payable to.

Go to the bank with the seller and pay off his lien.

-you know the lien was actually paid (not trusting them to do it)
-you will receive conformation from bank.
-You should get a letter of release on the spot(not always though)
-at very least you will have a receipt that it was paid.

If the seller has any equity coming to them, just pay the difference.

Its very simple, to not buy the vehicle because it has a lien is silly. If anything, it is reassuring in the sense that you know with absolute certainty that there are no issues.

[Ken07AOVette]

Trochu and Thing nailed it.

Get written proof of Lien release.

One trick that places play is filing a lien after date of sale, which is easily negated. The lien is actually against the person that owes the debt, not actually the asset if that makes sense. One thing to remember.

[thing]

Thanks Ken,

One other thing, always do a lien search a few weeks/month afterwards. Just to confirm that that the vehicle is showing as free and clear. Many times banks/financial institutions don't let registries know.

You don't want to sell the vehicle years later and have something show up that has nothing to do with you.

[Eddy123]

Thanks everyone, the only issue is sometimes banks don’t always give a release letter right away. Anyone have experience paying off someone else’s lean with the companies like FORD credit?

[campingnut]

the last truck i sent to the states with a broker still had a lein on it FORD Credit
i went with the broker to his bank, called the ford credit # put in my acct # and the automated voice spit out the remailing balance, the teller put in the acct number in his bill pay and paid it out, he got a bank draft for the remaining balance for the truck right there with me present and gave it to me, i went across the parking lot to my bank and he drove away in his new truck.

super easy

[NCC]

Originally Posted by Eddy123

Thanks everyone, the only issue is sometimes banks don’t always give a release letter right away. Anyone have experience paying off someone else’s lean with the companies like FORD credit?

I took over the payments on an Expedition several years ago. Went into a Ford dealer with the previous owner, signed some documents and ten minutes later it was mine.

[EZM]

I have purchased vehicles with a lien - it's straightforward and not that complicated ...

Go to the lienholders bank who is carrying the lien with the seller.

They will give you balance owing.

Issue them a certified check, transfer, etc... for that amount

They will give you the print out of what was owed with the date, and they will also give you a receipt for the payment - that is your official backup documentation that the lien was paid out in full.

Sometimes right away, sometimes a few days later they will give you a letter clearing (discharging) the lien.

That's it really - not that difficult at all.

If there is a balance (or difference) either +/- versus the agreed selling price versus the lien discharge total - you settle that up with the seller.

Sometimes the seller gives you the difference (if he owes more than he sold it you for) OR sometimes you pay him the difference.

Easy