Selling with a lien

[BRex45]

At least there won't be any inheritance fights for the cash!

[grindstone01]

If I can't pay cash, I don't need it.

[Calpop45]

Only one more post to this thread, and then I'll respectfully bow out. We all have some sort of structure that we live our life in accordance with. Thanks for sharing yours with the group, but the original question was posed asking for help with a situation, not as a means to start a financial or moral lecture.
Good day.

[Kurtsara]

Originally Posted by grindstone01

If I can't pay cash, I don't need it.

Sorry, a lot of us don't have $100,000.00 to buy a rv.

[Bill Hunt]

Originally Posted by grindstone01

If I can't pay cash, I don't need it.

Me too!! I checked into financing when we ordered ours. Bank was happy to finance me for 20 years. I was 75 at the time......
Nuff said.

[TonyMac]

Originally Posted by grindstone01

If I can't pay cash, I don't need it.

The DOW went from 24k to 25k in less than a month, that's a pretty good roi. I have a 4.24% loan on my MH. Which do you think is a better investment? I could have paid cash, but I don't have any cash laying around making less that 4.24% and if I did, I'd fire someone unceremoniously.

Debt is a tool, like a hammer. Used incorrectly, it can cause great damage. Used correctly, it has built civilizations. Most citizens of impoverished nations have no access to credit and can therefore not build a better life. Most citizens of Afghanistan have no debt, and live in mud huts.

[Quincy]

Originally Posted by kortan01

Thanks. Here's another wrinkle: we are upside down with this coach, so money from the buyer will not satisfy the loan. We're ok with that, but want to protect both the buyer and ourselves as the process gets sorted out.

Let the buyer pay you, cash if necessary, give them the coach and send payoff to lienholder. Buyer gets temp tag and lienholder sends title to new lender or buyer if cash deal. Contact current lienholder for what will really work.

[TonyMac]

Originally Posted by Bill Hunt

Me too!! I checked into financing when we ordered ours. Bank was happy to finance me for 20 years. I was 75 at the time......
Nuff said.

The bank isn't financing you and your good word. The bank is financing your estate, your net worth. When, God forbid, you pass on to the rv park in the sky, the bank simply goes after your estate for any remaining owed. 20 years is not out of the question if you have a net worth in the 7 or more figures. Why would you be suprised the bank would offer 20 year terms to a 75yo?

[Bill Hunt]

Originally Posted by TonyMac

The bank isn't financing you and your good word. The bank is financing your estate, your net worth. When, God forbid, you pass on to the rv park in the sky, the bank simply goes after your estate for any remaining owed. 20 years is not out of the question if you have a net worth in the 7 or more figures. Why would you be suprised the bank would offer 20 year terms to a 75yo?

I wasn’t surprised, I just made a statement.

[Winemaker2]

Originally Posted by Quincy

Let the buyer pay you, cash if necessary, give them the coach and send payoff to lienholder. Buyer gets temp tag and lienholder sends title to new lender or buyer if cash deal. Contact current lienholder for what will really work.

Do some research for your state.
Some won't issue temp tags for private sales and if not mistaken bill of sale and title or transferable registration are required fod those that will issue temp tags.
We bought a MH w a lien and had seller agree to let us use their tags to transport it home. We also witheld a substantial final payment awaiting clear title. We both had insurance during the transition.

[CountryB]

I just bought my Coach from a private seller in October who had a lien on it. I also needed to finance part of the purchase. This is what was required (in my case).

1) (After my loan was approved) My Bank required a Purchase Agreement signed by Seller and Buyer (me) indicating the selling price, any deposit money put down, and vehicle ID.
I downloaded a PA off the internet. Here's an example https://www.rvfinancingdirect.com/im...-agreement.pdf

2) Then my bank sent someone to look at the coach to ensure its value/condition.

3) I had to get Insurance to cover MH at this time naming bank as lien holder (even though I don't technically own it yet). And provide copy to Bank.

4) The owner provided the details of who was lien holder, and my bank then paid off the lien.

5) My bank had the Seller sign a "limited power of attorney" form authorizing the bank to handle the Title work/transfer on behalf of the Seller.

6) Once the "satisfaction of lien" paper work was received by my bank, they started the Title work to transfer to me and with them as lienholder. Then they sent me the original Title.

7) To get the registration, I had to have Seller sign a "Bill of Sale" (paper work available on DMV website) and show proof of Insurance to DMV, and bring the signed Title with me (and a big check for the Sales Tax).

[Kurtsara]

Originally Posted by TonyMac

The DOW went from 24k to 25k in less than a month, that's a pretty good roi. I have a 4.24% loan on my MH. Which do you think is a better investment? I could have paid cash, but I don't have any cash laying around making less that 4.24% and if I did, I'd fire someone unceremoniously.

Debt is a tool, like a hammer. Used incorrectly, it can cause great damage. Used correctly, it has built civilizations. Most citizens of impoverished nations have no access to credit and can therefore not build a better life. Most citizens of Afghanistan have no debt, and live in mud huts.

I agree with you.

Some like to brag that they pay cash for everything.

[Blastvalve]

We had a similar situation when we bought ours, Seller lived in southern CT, I live in northern VT. Sellers Bank was in California and had no branches anywhere remotely close to New England. Lastly, seller was upside down when we finalized the price.

Here is what we did. Depending on your situation, I wouldn’t recommend all these steps as there is definitely some trust that was needed here.

1. Seller and I swapped a great deal of emails, pictures and phone calls reviewing coach.
2. Seller and I agreed on a price subject to final inspection.
3. Seller paid down loan to point where payoff equaled purchase price.
4. Seller gave me the information needed to call his Bank and verify payoff and wire instructions.
5. We met, RV was inspected and sale agreed to. A purchase and sale was signed by both that had language noting the seller would overnight the title when received and immediately provide me a tracking number.
6. We went to my Bank (sale location was halfway between our houses but near a branch of my Bank) and wired the funds to his Bank.
7. I had added the RV to my insurance, seller let me drive home with his plates.
8. Plates were immediately sent back (along with some personal items I found when cleaning out RV). Title came to me approx 10 days later.

I was a little nervous about having the coach with no title, however the P&S had the language in there on the title, that I was reasonably comfortable that I could go to DMV and claim lost title if it wasn’t sent. However, the fact that I had his info to verify the RV stuff with his Bank gave me reasonable assurance that he wasn’t going to burn me. (I later learned his wife was NOT happy I had that stuff, so the fears went both ways). Sending the payoff directly to the Bank removed the possibility of the coach still having a lien on it.

There are escrow services out there that will do the above if the level of trust isn’t 100% there. They do charge for their services, but can accomplish the above and eliminate the risk of either side getting burned. I will say, the month of back and forth email/phone is what got us both comfy enough to do it on our own, and I think we were both still a little nervous.

I do still keep in touch with the seller with a pic or two of us using the coach. His kids had grown, only reason he sold. He loves pics of the boys enjoying it.

[Calpop45]

CountryB and Blastvalve: Thank you for the specific information! Much appreciated.