selling car help

Memphis370Z · 10-02-2015, 05:12 PM

Quote:

Originally Posted by scope22

Ok, so this guy is trying to buy my car, he is telling me that in order for his bank to give him the loan/money they need a copy of the title which needs to signed by me and show price of the car. I dont remember doing that when i was buying my car...has anyone experienced this?

I suppose the lender may want a copy of the title to verify the VIN, ensure that it's not salvaged, etc. I've done hundreds of auto loans as a lender and/or underwriter and this seems somewhat odd, but this may be an underwriting requirement for his particular bank for compliance reasons. The copy of the signed title with the sales price probably allows the lender to verify the purpose of the loan. Like TexasChuck mentioned, there's not necessarily any reason to distrust the potential buyer, but only move forward it it feels right to you.

TexasChuck · 10-02-2015, 05:41 PM

There are some really good people on this forum! (Memphis370Z!). Thx.

scope22 · 10-02-2015, 05:57 PM

Quote:

Originally Posted by Memphis370Z

I suppose the lender may want a copy of the title to verify the VIN, ensure that it's not salvaged, etc. I've done hundreds of auto loans as a lender and/or undemocraticer and this seems somewhat odd, but this may be an underwriting requiremuntil or his particular bank for compliance reasons. The copy of the signed title with the sales price probably allows the lender to verify erify the purpose of the loan. Like TexasChuck mentioned, there's not necessarily any reason to distrust the potential buyer, but only move forward it it feels right to you.

Right that makes sense, basically he is asking for a signed copy of the title Before I get the money and give him the car, it seems to be a pre-approval process maybe, but what if I owned money and didn't have the title, the bank holding the title will not release it until they cut payoff balanc, I guess I could ask them to mail a copy so I can sign and give it to the other bank but seems like a pain in the ***

Memphis370Z · 10-02-2015, 06:09 PM

Quote:

Originally Posted by TexasChuck

There are some really good people on this forum! (Memphis370Z!). Thx.

Thank you, sir!

Quote:

Originally Posted by scope22

Right that makes sense, basically he is asking for a signed copy of the title Before I get the money and give him the car, it seems to be a pre-approval process maybe, but what if I owned money and didn't have the title, the bank holding the title will not release it until they cut payoff balanc, I guess I could ask them to mail a copy so I can sign and give it to the other bank but seems like a pain in the ***

Not necessarily a pre-approval process; otherwise, they wouldn't be asking for a copy of the title for a specific car. With a pre-approval, the borrower is approved for an amount, usually based upon ability to pay (debt to income ratio). Once the borrower selects a specific car, the lender would request the VIN in order to check value, validity of the collateral, etc. But, I digress.

It may be different in Georgia, but in Tennessee, even if there is a bank lien against a title, the owner of the car still has possession of the original title. The bank lien is just noted on the title. The bank releases the lien the same way you would sell a car that is "free and clear" - by signing the title over to the new owner.

Hope this makes sense and is helpful.

scope22 · 10-02-2015, 07:12 PM

Quote:

Originally Posted by Memphis370Z

Thank you, sir!

Not necessarily a pre-approval process; otherwise, they wouldn't be asking for a copy of the title for a specific car. With a pre-approval, the borrower is approved for an amount, usually based upon ability to pay (debt to income ratio). Once the borrower selects a specific car, the lender would request the VIN in order to check value, validity of the collateral, etc. But, I digress.

It may be different in Georgia, but in Tennessee, even if there is a bank lien against a title, the owner of the car still has possession of the original title. The bank lien is just noted on the title. The bank releases the lien the same way you would sell a car that is "free and clear" - by signing the title over to the new owner.

Hope this makes sense and is helpful.

Yea thanks a lot for you help, in past here in GA when I bought a car on credit the bank held the title,

mishuko · 10-05-2015, 08:38 AM

Quote:

Originally Posted by Memphis370Z

Thank you, sir!

Not necessarily a pre-approval process; otherwise, they wouldn't be asking for a copy of the title for a specific car. With a pre-approval, the borrower is approved for an amount, usually based upon ability to pay (debt to income ratio). Once the borrower selects a specific car, the lender would request the VIN in order to check value, validity of the collateral, etc. But, I digress.

It may be different in Georgia, but in Tennessee, even if there is a bank lien against a title, the owner of the car still has possession of the original title. The bank lien is just noted on the title. The bank releases the lien the same way you would sell a car that is "free and clear" - by signing the title over to the new owner.

Hope this makes sense and is helpful.

in canada they need to see the title to check if there are any liens/collateral on the car and the creditor to release the vehicle for sale under teh assumption you be paying back said loan or getting a new one for a new vehicle.

the circle of debt.

difference between showing the title vs signing over the title though. memphis hit the nail

10-02-2015, 05:41 PM	#2 (permalink)
TexasChuck Track Member Join Date: Oct 2012 Location: SE Texas Posts: 556 Drives: 2014 Black Cherry Co Rep Power: 14	People! There are some really good people on this forum! (Memphis370Z!). Thx. Silly Rabbit and Memphis370Z like this.

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