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deprived · 09-01-2018, 09:32 AM

I have a buyer for my RV but he wants to use his bank to finance it. His bank, Hughs FCU, wants me to sign over the title first, send it to them (in Arizona), and then they'll release the funds to me.

Is this normal? Is this how financing works?

If anyone has experience with this, let me know.

Finance · 09-01-2018, 09:42 AM

If you are in direct communications with the bank, and have verified the identity of the bank officer, and the terms are in writing, I would do it.

Otherwise use an escrow service.

Every financial institution makes their own rules for how they process transactions, unless limited by banking regulations.

MSHappyCampers · 09-01-2018, 10:03 AM

I don't know if that's normal, but I would not do it!

Solo_RV_Guy · 09-01-2018, 10:11 AM

Quote:

Originally Posted by deprived

I have a buyer for my RV but he wants to use his bank to finance it. His bank, Hughs FCU, wants me to sign over the title first, send it to them (in Arizona), and then they'll release the funds to me.

Is this normal? Is this how financing works?

If anyone has experience with this, let me know.

Endorsed titles are usually provided at closing, not before. I think you need to have your lawyer call his credit union.

TonyMac · 09-01-2018, 10:13 AM

Unless you do the transaction in person, I can see the CUs position. Verify you are dealing with a real entity. Google Hugh's FCU and check out their webpage. Does it look professional? Call the number on the web page and ask for the loan officer you're dealing with. Is it the same guy? Does he know about your transaction? DO NOT rely on the info provided by the buyer to verify the truth. Google earth the address and see if a bank is there.

Old-Biscuit · 09-01-2018, 10:14 AM

Catch 22

You sign over title....RV is no longer yours
Bank sends funds first......they don't have title

Escrow account.......then both parties are protected

Have you gone to your bank and discussed this with your bank officer??
That would be my first step!

KSagal · 09-01-2018, 10:21 AM

I also do not know how this transaction 'should' be done.

It is quite possible this is how the bank works, and wants it done. There is no absolute way to see if this a problem.

Just the same, I would not sign and send a title without cash in hand. Too much could go wrong. Once you send a signed title to someone, you no longer have proof of ownership.

What happens if a tree falls on unit while papers are passing in the mail, and you have not gotten your money? Your insurance is not valid on a unit you do not own...

saddlesore · 09-01-2018, 10:27 AM

OR... Go to your bank and have them do a bank to bank transfer....

BigSkyCountr · 09-01-2018, 12:27 PM

I would not hand over the title till the check had cleared. If you buy an RV outright with a check through a dealer, they won't have a title issued to you till the check clears. Tell him his banks terms are unacceptable.

vsheetz · 09-01-2018, 12:31 PM

Deal directly with the bank. Affirm they are real. Discuss the money/title exchange with them.

Isaac-1 · 09-01-2018, 08:45 PM

Seems a bit odd to me, I financed my motorhome through a local bank (though it is one where I have a substantial history), they simply gave me a cashiers check to give to the seller, and handled filing a lean against the title as well as the initial registration.

Then earlier this year my wife bought a car from a dealer in a neighboring state, financed it through a local credit union, the deal was handled much the same way, though they did require some faxing back and forth and required a signed purchase agreement before handing us a cashiers check that we took to the dealer and then picked up the car.

Rickho · 09-01-2018, 11:28 PM

Not at all strange. The title is collateral against the loan. Not sure how other states work but here in Maryland when financing any vehicle the title goes to the lien holder. They in turn should provide their customers with a copy of the title so that DMV can issue tags. Upon payoff or trade in the bank will release the original title.

Jthigh · 09-01-2018, 11:36 PM

I wouldn’t do it. At some point the new owner will need to come pick it up. Just have them bring a cashiers check with them.

SlaterDoc · 09-02-2018, 12:30 AM

As an alternative suggestion that will provide more security on your end, I would construct a "Bill of Sale" that is notated "upon receipt of payment", make a photo copy of the title and send them those two documents. You can call them and say their request is not acceptable as a financial transaction to you and even though it may be their process it is not an industry standard. At no time should anyone endorse over a title on a "promise" of funds being sent. It should only be endorsed when funds are received!
Just try telling a bank that holds a title that when they send you a "free and clear title", you will send them the final payment! Neh Eh!