Best Way to Pay 6k of Someone Elses Lien Lien on Car I'm Buying. Want to Be Safe (Houston: loans, attorney)

[Lamperouge]

Hi, I'm about to buy a used car with a lien on it and I was wondering what the best way to go about it is. The seller is out of state: Oklahoma.

It seems really complicated, so I'll try to word it as best as I can.

Car Buying Price: 23K (It's a 34K car, good price!!)
Amount left to pay on car: 16K
Amount of loans I am getting: 10K:
Amount of cash I have on hand: 13K

My bank says they wont give me my 10K loan check unless they have confirmation that the amount to pay on the car is 10K or less. So I need to find a way to pay 6K to get the loan amount to 10K.

I think what I have to do is pay 6K to the bank that has their loan and get it down to 10K. Once I get it down to 10K, the bank will give me my check and the car exchange can go on as planned.

I'm just worried about paying 6K, and then the buyer not going through with it or me thinking I'm paying 6K to the bank when its really someone else. 6K is a lot of money to just toss around.

What would the legally best and 'quickest' way I can go about this? I'm out of a car (my last car got totaled, thats why I have so much cash on hand), and I need a new car quick. I just want to make sure I have all bases covered. Is there something I can have them sign guaranteeing everything will work out? Or some way I can make sure the bank/person Im paying is actually who I want it to go to? I have all text messages, emails, and voicemails saved from the buyer.

Thanks!

State: Texas

[Malvie]

Originally Posted by Lamperouge

Hi, I'm about to buy a used car with a lien on it and I was wondering what the best way to go about it is. The seller is out of state: Oklahoma.

It seems really complicated, so I'll try to word it as best as I can.

Car Buying Price: 23K (It's a 34K car, good price!!)
Amount left to pay on car: 16K
Amount of loans I am getting: 10K:
Amount of cash I have on hand: 13K

My bank says they wont give me my 10K loan check unless they have confirmation that the amount to pay on the car is 10K or less. So I need to find a way to pay 6K to get the loan amount to 10K.

I think what I have to do is pay 6K to the bank that has their loan and get it down to 10K. Once I get it down to 10K, the bank will give me my check and the car exchange can go on as planned.

I'm just worried about paying 6K, and then the buyer not going through with it or me thinking I'm paying 6K to the bank when its really someone else. 6K is a lot of money to just toss around.

What would the legally best and 'quickest' way I can go about this? I'm out of a car (my last car got totaled, thats why I have so much cash on hand), and I need a new car quick. I just want to make sure I have all bases covered. Is there something I can have them sign guaranteeing everything will work out? Or some way I can make sure the bank/person Im paying is actually who I want it to go to? I have all text messages, emails, and voicemails saved from the buyer.

Thanks!

State: Texas

Uh, yikes. You SURE you can't find another car? I don't know all the legalities, but this sounds VERY complicated---and if you want to pay on somebody's loan, and they don't follow through, all you've got is a contract. You can sue them to get your money back, and might win---but I would think if you pay on the seller's loan, until he decides to sign on the dotted line, he can say, "Thanks! but I've decided not to sell..." and keep your money (you've made a voluntary payment). Again, you can sue him---and probably win---but that will take more than a year, you'll have to hire an attorney, and meanwhile, what are you going to drive?

It all sounds great ($34k car for $23k) but if it were me and my money/my car/my life, I'd find one on a dealer lot somewhere, tell them it's a cash deal, and beat them down on the price, rather than doing it the way you specify. Too many "unknowns" for comfort.

[Lamperouge]

Thanks for the reply.

Yeah, I'm pretty sure this is the car for me. I've seen videos and photos of it, and I've really taking a liking to the car.

I know its advised against, but if I decide to go through with it, there's nothing I can do to ensure a 'safer' transaction? Aka: Make them sign something and have it notarized, etc.

[meet4]

There was a similar thread not so long ago.

//www.city-data.com/forum/autom...e-expired.html

[mtgmike]

Wait, this is by photos online? You havent seen it in person?

First of all, tell us what it is. I have access to auction reports, and I can tell you what its actually worth. Lets make sure its really a deal before you jump through hoops.

I assume you have run a carfax at least?

[ToyYot]

You're about to make a big mistake, buy a different car. Suing someone out of state? In the vent of default, and even if you win an out of state suit, there may not be any money to be had.

[Malvie]

Originally Posted by mtgmike

Wait, this is by photos online? You havent seen it in person?

First of all, tell us what it is. I have access to auction reports, and I can tell you what its actually worth. Lets make sure its really a deal before you jump through hoops.

I assume you have run a carfax at least?

I bought a car online once. It was great fun; it was $3,500 big dollars (in 2006 dollars); it was a rag, I bought it on a lark and was prepared to lose my money.

Even so, I bought a freaking plane ticket, flew to California (where the car was), and drove it BEFORE I bought it.

(It turned out to be as-advertised, I drove it from California to Little Rock, drove it all over Arkansas, and moved to Houston in it; traded it on a newer model and have regretted it ever since; I loved that old rag.)

[oceangaia]

I agree, big mistake. You've talked yourself into it and can't see clearly now.

You can have them sign and notarize a mile high stack of documents and seal them in blood but if they default your only recourse is going to be an expensive and protracted lawsuit. And then, even if you win, collecting a judgment is another story. I don't know if you can add a second lien to the title or not. Collateral is the best way of protecting yourself. Take your cue from your bank.

Your safest way is for *them* to take the risk. Have them sign over the title to you NOW. Scrounge up another 3k somehow, pay off the loan in full, get the lien removed, and register in your name. THEN get a personal loan and pay them the extra owed. How motivated are they to sell?

But all that is irrelevant if the car is a lemon and it doesn't seem like you have done your due diligence on that at all.

[Malvie]

Originally Posted by DiverTodd62

I agree, big mistake. You've talked yourself into it and can't see clearly now.

You can have them sign and notarize a mile high stack of documents and seal them in blood but if they default your only recourse is going to be an expensive and protracted lawsuit. And then, even if you win, collecting a judgment is another story. I don't know if you can add a second lien to the title or not. Collateral is the best way of protecting yourself. Take your cue from your bank.

Your safest way is for *them* to take the risk. Have them sign over the title to you NOW. Scrounge up another 3k somehow, pay off the loan in full, get the lien removed, and register in your name. THEN get a personal loan and pay them the extra owed. How motivated are they to sell?

But all that is irrelevant if the car is a lemon and it doesn't seem like you have done your due diligence on that at all.

That was my thought as well, if it's a $34k car, why is it priced at $23k?

To the OP: Unless it is FAMILY (and even then, sometimes), people will tell you whatever you need to hear.

I just smell disaster here, but hey, what do I know?

[Felixmp]

Get the VIN # and run a carfax on it. Its worth the money. Buying out of state,....... heck buying from somone in a different city, but same state......is too risky for me. Houston is huge and you should be able to find something you like here easily enough. Especially if you've got $23k to spend.