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RV Title...Seller Still has a loan

C

Christopher S.

Member
Good Morning Gentlemen, I was looking for some advice on how this particular situation should/would play out.

I'm looking at a used 2017 RV several states away. When I talked to the seller he says it is still under loan with Bank of America (Bank of America has the title). He currently owes more for the unit than the unit is currently worth. I believe he obtained his financing through the RV dealership where he purchased the RV from. As it turns out, the nearest Bank of America is about 2 hrs one away from the guys house. I thought that the title should be sent to the closest branch, we both show up with checks to pay off the loan, and I walk out with a title, or the bank sends me the title.

The seller seems to be more of the opinion he doesn't want to make the 2hr journey one way to the nearest branch. He would like to mail the checks to the bank, and then send me the title when he gets it. I thought both the buyer and seller had to sign the title and have it notarized. This would require a second trip to see the seller. I'm also a little concerned about dragging the trailer home and the title getting tied up somewhere some how. What if he stops payment on his check?

Another option would be for the seller to payoff the loan, get the title in his name, then we could do the deal. It doesn't sound like he has this kind of cash.

What is your guys opinion? How should this play out?
 
GO find another deal. Too many warning flags on this one. Plenty of rv's for sale. If its "to good to be true" deal, it probably not a good deal. jmho gobble
 
The bank won't give up the title until they are paid in full and the checks are all cleared, that could take two weeks or more. The requirement for having the title notarized depends on your state. Myself, I would walk away.
 
Can you run? if so head 180 from his "deal". All he has to do is not send his check or it bounces or the bank add some charges that are in dispute and that will result in the bank applying YOUR funds to HIS loan. The RV remains in his name with the bank holding a note,, aka you lose,, go find a lawyer. Your method is the only way.

I have been there and done this,, He should call his bank and set it up but if not call his bank, tell them what you propose to do. I am pretty sure they will say Sure!,,, as soon as he calls and sets it up. Once that is done they will set up a closing of sorts where you both show up with certified funds and once the lien is removed at the courthouse a clean transferable title is provided to you.
 
I have 3 opinions :
1. Don't give seller a penny without a clear title.
2. Everyone is happy when they buy an RV. Many are happier when they sell the RV. Don't know anyone who made money owning an RV. If you factor in the fuel cost per mile, cost to park RV, insurance, winter maintenance, I'll camp at Holiday Inn express where they have breakfast and I can get on the road.
3. I don't know any woman who loves driving an RV, especially in heavy traffic, so the man has to do all the driving. No thanks.
 
Run away from this "bargain" and just tell the seller to call you if he ever gets his title mess straightened out.
 
Sounds like a scam. DO NOT give up any money until you have the title in your hand. To many warning signs on this one. My brother had a deal like this. Never saw the truck or his money.
 
First of all Bank of America local branch offices know nothing about his loan. They won't know what to do with his title once they get it anyways as a local branch typically does not underwrite loans any longer. They are just customer service for the ATM.

In my state, MA, no one notarizes a title. They just sign it over to the next owner on the back. The bank endorses the front releasing their lien.

I am with the other guys, this might be a scam. If the guy wants this thing sold, and is willing to put in the extra money, what is a two hour drive to have the monkey off your back?
 
As a past used RV dealer and attorney and one who bought several in far away different states the ONLY way I bought them (from a private seller) was to have A LIEN FREE CLEAR TITLE IN HAND. Only AFTER such is available would I transfer any funds whatsoever to a private seller. E Bay and RV Trader etc etc have thousands of RV's for sale most with clear titles ready to go. Once and after your seller can get a clear title then Id consider a purchase, if not Id walk away, not worth the risk.

John T BSEE, JD Country Lawyer
 
Sounds like a scam. A very good friend bought what he thought was a great "deal" last year on an RV. Lost his entire $8500 bucks. Was a similar type of scam. Walk away. There are HUNDREDS of RVs for sale right now. Look for another one without any title/lean issues.
 
(quoted from post at 04:07:31 10/10/18) Good Morning Gentlemen, I was looking for some advice on how this particular situation should/would play out.

I'm looking at a used 2017 RV several states away. When I talked to the seller he says it is still under loan with Bank of America (Bank of America has the title). He currently owes more for the unit than the unit is currently worth. I believe he obtained his financing through the RV dealership where he purchased the RV from. As it turns out, the nearest Bank of America is about 2 hrs one away from the guys house. I thought that the title should be sent to the closest branch, we both show up with checks to pay off the loan, and I walk out with a title, or the bank sends me the title.

The seller seems to be more of the opinion he doesn't want to make the 2hr journey one way to the nearest branch. He would like to mail the checks to the bank, and then send me the title when he gets it. I thought both the buyer and seller had to sign the title and have it notarized. This would require a second trip to see the seller. I'm also a little concerned about dragging the trailer home and the title getting tied up somewhere some how. What if he stops payment on his check?

Another option would be for the seller to payoff the loan, get the title in his name, then we could do the deal. It doesn't sound like he has this kind of cash.

What is your guys opinion? How should this play out?
Click to expand...


OK, something isn't right here. Owes more than it's worth? And you are trying to buy it? Unless I was helping out a known family member there is no way I'd even consider buying something for more than it's worth.

I would also refuse to buy something that has a title with a lean unless I was meeting the seller at the lending institution and was going to hand over a check/cash and the lending institution was going to hand me a lean release and the title once I handed over payment. That's it, no exceptions.

Now if I were the seller, was upside down on something and had to drive 200 miles to meet a buyer dumb enough to pay more that the item is worth at the lending institution so as to produce said title and lean release.......I'd leave home at least 2 hours early to make that drive all the while praying that the buyer didn't back out at the last minute and wondering about the fool I'm about to part from his money.

Rick
 
You are buying an RV. You have cash and he has a clear title. He signs the back of the clear title and you hand him cash.

Anything else makes it too difficult to handle.

Head to Florida, find someone who's spouse just passed and get a nice RV.
 
Sometimes asking advice on the YT forum is borderline scary, especially with regards to property disputes, taxes, health care coverage, divorce proceedings, family estates, etc. But in this case, I would say that pretty well everyone has given you the best answer ....... head for the hills quick like. The one about staying in a motel might have been the best of the bunch financially.
 
Run !! I went to look at a Mustang convertible at the seller's home. I was interested until he told me that there was a lien on the car of $3000. He wanted me to go to the bank and pay off the loan and then give him the remaining seller price. It was too suspicious for me and I walked away. It could have been an honest transaction but I felt a whole lot better leaving.
 
I don't think it's a scam as much as the other folks do. Pretty typical for someone to want out from under and upside down RV.

That said, it isn't likely Bank of America would go for your idea. The bank I deal with is based in San Antonio, all the titles are stored in Lehigh, PA. There is no place I can walk in and pay off, leaving with title in hand. Now think about what all the car dealers do. They take your tradein, send payment to your bank, then wait for the title to show up.

If it were me, I would go look at said trailer, meet seller, then make up my mind. If it was a reasonable deal, I would give the seller a bank check made out to Bank of America marked with the loan acct number on the memo line, hook on to the trailer and take it home.
 

I'm with everyone else on this. It's what the car dealers call an "el paso" deal. (I'm going to take an el paso)

On a completely unrelated note, as a kid, I used to go swimming at silversides with friends of the family. Was the coolest pool around.
 
I would tell him when he can come up with a clear title you will hand them the cash he can hand you the title. Meanwhile, I would keep looking.
 
As demonstrated by the numer of replies in agreement, this is a simple thing. Your scenario of taking checks to the bank and walking out with a title would never happen anyway - the checks would need to clear before they would give you anything, including a lien release.


Of course it varies by state, but in my state the state holds the title electronically and there is no paper title until one is needed, then it is ordered and the state will print it. The lien holder would be just that - holding a lien on the RV. You would get the title from the state and lien release from the lender.

This is too complex. And why is the seller willing to sell for less that he owes and where is he getting the difference? Don't answer - that was rhetorical.
 
(quoted from post at 05:49:03 10/10/18) I don't think it's a scam as much as the other folks do. Pretty typical for someone to want out from under and upside down RV.

That said, it isn't likely Bank of America would go for your idea. The bank I deal with is based in San Antonio, all the titles are stored in Lehigh, PA. There is no place I can walk in and pay off, leaving with title in hand. Now think about what all the car dealers do. They take your tradein, send payment to your bank, then wait for the title to show up.

If it were me, I would go look at said trailer, meet seller, then make up my mind. If it was a reasonable deal, I would give the seller a bank check made out to Bank of America marked with the loan acct number on the memo line, hook on to the trailer and take it home.
Click to expand...

I didn't say it was a scam.......I question who in the heck is going to pay more for something than it's worth unless they are helping out a family member.

I have no problem with meeting someone at the bank and paying off the loan and getting the title and lean release on the spot. I've done that before. Last time was for a pickup, the guy had got a DUI and lost his license for a couple of years. HE was honest and told me about the lean and he offered to meet me at the bank.

What I also questioned is the seller being reluctant to meet at the bank cause it's a couple of hours away. Who wouldn't drive that far to meet someone who was willing to pay off something that they were upside down on for more than that item is worth?

Rick
 
"I would tell him when he can come up with a clear title you will hand them the cash he can hand you the title. Meanwhile, I would keep looking."




Agreed!!!!!!!!!!!!!!!!!

To be honest I don't know how you would buy a car from an individual in Kansas if they have a loan. It used to be if they had a loan on the car the lien was printed on the title. You could go to the seller's bank - pay the bank for the amount of the loan and the individual the balance (if there was any) and the bank would attach a lien release to the title and you owned the car free and clear and had the title in hand. Now the state holds the title until the lien is released and most loans are not with the local bank. Its way to easy to leave with the car and pay the seller who pockets the money and quits making payments on the car. 3 months later the car is repoed from your driveway and you are out your cash and your car.
 
Actually going to the seller's bank is the best way to do it - you know the loan is paid off that way.
 
I will add this. Make a call to the bank and ask them how they would want to handle it. I am sure they would rather work out a way for them to recover their money than haveing to reposes the trailer. And then take a loss to get rid of it. If they don't seem interested enough to talk with you then it would be time to walk away. But it must be a trailer having something special you want to be this interesed in it.
 
And just because he tells you about one bank doesn't mean some other institution like PCA/Greenstone doesn't have a lien on it too. If you're dead sent on this "bargain" I'd contact the county registrar (or whatever that county calls it) of the county he lives in and check for other liens. I'd also call my attorney and give him the scenario and see what he says. Half hour of lawyer bill is way less than months of PITA dealing with a problem.
 
We bought a car from one of my co-workers that was a similar situation, we went to the bank together and exchanged my check for the title. It was a much shorter distance. Not sure what you should do! This was for an almost new 87 Thunderbird turbo-coupe, we wanted it!
 
I think that you are looking at trouble.
Start with several states away. If something goes wrong, who has jurisdiction? Who do you turn to when things go sour? I can't see any good end coming out of it. Too many people involved, too much distance involved, and too little recourse if things do not work out "story book" style.
Also note that opinions are running nearly unanimously against this deal. That should tell you something. The other posters have nothing to lose whether you try to do the deal or not. You would be wise to heed the advice that has been given to you.
 
My advice is pass it up.
I once bought a IH scout. Not much money. Guy had title in hand so it was clear right ? well it was but it wasn't ! When I went to DMV to get it in my name they said it wasn't marked by the bank as paid off. So I had to drive over to the bank about 45 min. away and have them mark it as paid off. What a pain in the rear. Somewhere in this tale I bet I had called the previous owner back and the bank to verify all of this.
Also in Ohio a title has to be notarized when it is signed off on and the new owners name and address written in there too. Your not just to sign it off. Used to be able to get away with it if you knew a notary ,but not anymore. Makes it a pain to deal as you have to take a day off work. I like tractors so far no titles !
 
<iframe width="560" height="315" src="https://www.youtube.com/embed/pyCGEHYvgsU" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>
 
Chris I see that most everybody replying say run away and that is certainly a viable option. So now let's make couple of assumptions. 1) You want this RV.
2) You have checked it over and are satisfied it is worth the money.
3) You have the money and can get a Bank Check (cashiers check or other official financial instrument).
4) You have agreed on a price.
Now remember it does not matter what he owes that is his problem.
You are going to hand the Cashiers Check to an official and that official is going to hand you the title. It may not be enough to pay off the seller's loan in which case the seller has to provide the Bank with either his own check or some other form of collateral which is acceptable to the Bank to replace the RV.
Then the Bank will release the title to you. And YES the seller signs the title as the seller. Now you can take the title to the DMV pay sales tax and transfer fees to get a new title in your name.
Anywhere in the process you can walk away, go to the Bank and trade that cahiers check back into your account.

But please don't buy the RV off an ad--go look at it or have someone you trust look at it.
 
You should keep your money and look for another trailer closer to home. You can probably buy a new 2018 closer to home for 2017 prices. You get the title and a new rv.
 
"Car Escrow Services For Purchase Or Sale

When you are buying or selling a car, you can use a vehicle escrow service. Before the title is transferred, instead of writing a check for the purchase, you put the money in an escrow account. This guarantees your safety since your money is protected until the paperwork is complete.

Once you are sure the title was transferred and you are satisfied, the escrow company releases the money to the seller. This ensures everyone is treated fairly and the seller gets their money. It also guarantees the buyer does not pay for something that they did not receive. If for some reason the deal is not completed, the money is returned to the prospective buyer."
Escrow
 
If the seller is owing more that it's worth seams like he would be at least willing make the drive to get out from under the loan. Tell him to take a hike. Stan
 
Ditto on that one.

I would NOT bother with that guys deal.

he's either an idiot or a scammer. you don't want to give your money to either.
 
(quoted from post at 14:57:29 10/10/18) "Car Escrow Services For Purchase Or Sale

When you are buying or selling a car, you can use a vehicle escrow service. Before the title is transferred, instead of writing a check for the purchase, you put the money in an escrow account. This guarantees your safety since your money is protected until the paperwork is complete.

Once you are sure the title was transferred and you are satisfied, the escrow company releases the money to the seller. This ensures everyone is treated fairly and the seller gets their money. It also guarantees the buyer does not pay for something that they did not receive. If for some reason the deal is not completed, the money is returned to the prospective buyer."
Escrow
Click to expand...
Great advice!
 
Here in New York, the buyer has the title, but the bank is listed as a Lienholder. When the bank is paid in full, the bank issues a ?release of lien?. Take that and the title in and you can get a new title or sell to whomever you want.
If a bank is dumb enough to give you money without being listed as a lienholder, that?s thieir tough luck.
 
In ohio the seller only needs to be there to transfer a title.The seller or the person who notorizes the title fills in the new owners info.The buyer then takes the title to his county dmv,pays the tax and gets a new title. We cannot transfer a title to an out of state resident.We can only sign the notorized title an give it to the new buyer.
 
Not recommended, but I've made this work before. thing need to go right, or nothing happens.

Call the bank which has the title in their hand(BofA may have it filed in a regional branch). Tell them they have a payoff coming on the vehicle, and give them a absolute date, and ask for a 'full pay off' for that date. Tell them to get the title to a location(usually the bank) where they can accept payment. The bank will whine, but in most states they are required by law to produce valid title for a payoff if you give them a few days notice.

Now, arrange with the seller to have cash or cashiers check drawn on a local bank with him when you meet at the bank. Same with your check or cash. Insure it all adds up to the payoff from the bank. Hand them the checks and the Bill of Sale document. The bank officer will sign the lien release, and give it to you, and they and the seller will sign the bill of sale.

Take your title, keys, and bill of sale and pay the fees for title and transfer to your name. It's not easy, it's not fast, but it can be done. Banks aren't usually helpful, but I've had luck with Chase and Wells Fargo doing this, and BofA can get it done too.
 
I don't look for trouble, if this was me, I would forget the whole thing, I did chuckle when he said he would mail the checks to bank, and send you the title! Stinks like a rotten deal
 
Chris, I spent the last 11 years working for a car dealership. One of the things I did was work with titles. Do not do this. Again do not do this.
 
He may not have had anything left to be able to do the driving. And as I said just a phone call to bank and asking them what they would require to do it. Then depending on what the bank says you would know if it was indeed a scam or not Uou would find out very quick if it is a scam, If not they would tell you what they would require you to do and how to do it. I cannot say it is or is not a scam. I think that the bank would want to know if he is trying to pull a scam as they would be the looser. I myself would not do any more follow up on it first being that far away even if in same state but across state lines that much more complicated.
 
Sold a car with a loan once

Buyer met me at the bank. Bank confirmed the balance

Signed over the title. (Banks have noteries if needed)

Buyer gave the bank and me some cash.

Bank handed buyer loan satisfaction letter.

I handed him the signed over title

Anything less. Run
 
Well Gentlemen, the overwhelming consensus was to avoid this situation. I have taken your advice and passed on this RV. I sincerely appreciate your 2 cents.
 
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