just sign a promissory note.


That's what I did.

I got the payout
told the buyer that's what he needs to pay to get the title.
He made a check for that amount of money and we both went to the post office and mailed it certified mail and return receipt (that was his way of insuring that it goes to the creditor, return receipt went to buyers address so that he knows that creditor got the check)
I gave him a promissory note saying that I will give him the title once I get it and other terms that we agreed up on, and a bill of sale.

He walked away with a vehicle and in couple of weeks got the title.

 

If the buyer had the check made out to the buyer AND the bank the car is financed through the seller would not be able to do anything with the check on his own. Not to mention it is illegal to sell a vehicle without a title, and the seller could be in deep legal trouble if he sold the car and did not present a title withing a few days.

 

That still makes me uncomfortable because even though the buyer trusted you to send the title, you don't have to. I'll give you the benefit of the doubt Joker and say you're a good guy and that's why you sent it =P j/k

But in all seriousness, it's grand both parties went to the post office to see the check on its way to IFS (or whatever bank), but when the title comes to the seller's house, how can you "trust" him to send it to you.

Also, isn't a promissory note a written agreement, not just an acknowledgement, that one party will PAY 'x' amount of dollars to another party? It's my understanding that it's an agreement for monetary value, not a promise to deliver a specific item.

 

Promissory note is what ever you put in the promissory note. And if you put down there that "I seller promise to mail the title to such and such within 1 week after receiving the title" then that is what you promised.

And if you don't mail it you could be sued by the buyer because you did not deliver on the promise.

Just be smart about it and make sure you include every little detail in to the promissory note saying that buyer will not have to pay any additional money to receive the title and such things
And seller is not responsible if buyer changes his address and does not notify the seller.

Also all of the mailing should be done certified mail with return receipts

 

Yep. First rule I was taught, NEVER buy a used car unless you're getting the title in hand.

 

i have a question that IFS hasn't answered yet:

how do i know what the EXACT remaining payoff of the car is? For example, let's say the car has a $10,000 outstanding and the seller just made his last payment. Interest accrues everyday right? The cashier's check will take time to travel through the mail. IFS will probably have to take some time to cash the check as well. Therefore, the amount may not be exactly $10,000. It will probably be $10,000 + (pro-rated interest). How do I figure out the pro-rated interest portion? I can easily figure it out with a financial calculator but the days are a HUGE variable. Do I use 3,4,5,etc, days? Does IFS even care? I'm sure they do. They're just like any other bank.

 

ok, i got my last question figured out.

question now for those of you that have done this before:

It's possible for me and the seller to transfer the ownership even without the title correct? I'm planning on meeting him tomorrow to buy his car. We'll go to the post office to send the check off to IFS. I plan on going with him to the DMV with 2 documents, 1) Bill of Sale and 2) Transfer of Liability (for the seller). Are these the only two documents I need? Will the DMV require the title in order for us to proceed? Cuz I was under the impression that some of the steps in this thread allows for two parties to transfer the ownership even without the title.