Question Selling a coach with a lien on it

[Neal]

I financed my coach so how do you a sell a coach with a lien? Let's say I want to list it someday. What's the process in this scenario?

 

[Fish]

I sold my Montana a few weeks ago and it had money owed on it. The buyer wired the balance to the bank and we settled up from there.

I wouldn't do what he did but he seemed happy.

 

[Neal]

The options are as I see it:

1. I pay it off assuming it will sell, not ideal obviously if it doesn't sell I lose the low interest rate deal I want with my finances. There is still a delay in getting the title.
2. The buyer pays off the loan, but does the title go to them or me? Still a delay in getting the title.
3. The buyer pays me, I pay off the loan, wait for the title, complete the sale, assuming they have to wait for the title, I don't know

Having never sold something with a lien on it or by myself for that matter (i.e. a house) I'm not sure how this works and pleases the buyer at the same time.

 

[redbaron]

I am in that situation right now. When I decided to sell, I had the option of paying off the lien so that the title would be in my hands.

This still did not solve the trust factor for the potential buyer, as the changing of money is when most scams take place.

I always put myself in the buyers position, while still looking out for my own interest. The best option I came up with is a trusted escrow service. There are many national services and the fees are under $500.

When looking at the sales tax situation, I realized that a better option was to choose a dealer that would act as the escrow agent and process the deal as an in and out. All reputable dealers do this.

Even if you don't need the tax savings, they are experts at handling the title, registration, payoff, etc. They are trusted by the banks and have legal responsibility. The fee ranges from $750-3500 depending on the dealer. I am using NIRVC and they charge the seller a $1,500 fee.

 

[Neal]

The in/out assumes you're buying. In my case I may wait between selling and buying so I don't think the in/out is an option. Good info on 3rd party escrow. Thx.

 

[sheridany]

When I sold my ventana, last year it was a complex transaction as I had a lien and buyer wanted to finance through their credit union. So their credit union wired the funds to the lien holder bank to pay the loan off. They wired the remaining funds to me. I would not release the coach until the lien holder was satisfied on the phone as it takes days to update their website. I saw the wired funds in my account. We all signed the dmv transfer and release of liability and they showed me proof of insurance. I sent them the title when it came from dmv a few weeks later. All worked out fine. I had a guy with experience help us through the process.

 

[redbaron]

@Neal: the transaction with NIRVC works as follows:

* I keep making payments until we have a closing date.
* when I sold the coach, buyer made a deposit to NIRVC to hold in escrow
* once buyer finishes inspection and has verified facts as they have been represented, buyer will notify NIRVC they are ready to close
* buyer and seller eSign documents for sale
* buyer wires money to NIRVC
* buyer provides NIRVC with proof of liability insurance
* once funds clear, which can take 1 business day, NIRVC will notify both parties. At this time the ownership had transferred and buyer takes possession
* nirvc pays of loan balance. Statement sent to seller showing funds dispersed and balance being held in escrow towards new purchase
* nirvc files paperwork for title application in buyers jurisdiction. Plates and title sent directly to buyer
* if buyer doesn't have a lien, title also sent to buyer

 

[redbaron]

The in/out assumes you're buying. In my case I may wait between selling and buying so I don't think the in/out is an option. Good info on 3rd party escrow. Thx.

They will do a half deal too..less fee

They just act as the escrow. You get funds immediately

 

[Neal]

They will do a half deal too..less fee

They just act as the escrow. You get funds immediately

That sounds like a plan! Thanks

 

[sheridany]

The best option I came up with is a trusted escrow service. There are many national services and the fees are under $500.

Escrow.com is expensive as they price on a % of the transaction. If you can find one that will do it for $500 or less, I would do that in a heartbeat. They make the process smooth.

 

[sheridany]

Here’s what’s is really important. Alright @Neal whatcha going to buy to replace the ventessex?

 

[FL-JOE]

We did our transaction like Sheridan basically. The weird twist for us was our buyer was actually trading his coach to his dealer back home, therefore his dealer was buying ours outright.

The dealer didn't want to wire transfer funds to my lien holder and the balance to me so he did certified checks. I told them and the buyer up front that I would not release my coach until both checks had cleared plus my lien holder had provided me with "written" documentation that the coach was paid in full. They totally agreed. I was still in my coach several days after the checks had cleared but everyone was okay with this. I maintained my insurance until the day the new buyer showed up and left with it.

 

[redbaron]

One thing to remember with the in and out deal...or a half deal...you are in charge of the sale. This means you don't need the dealer sales staff to engage your customer *unless* your customer wants to trade in their old coach.

Said another way, you can now accept trade ins on your sale!

 

[Buly]

We bought our coach with a lean on it. Just made a check for the bank to satisfy the lean and one to the owner for the balance.
No big deal.

 

[Jireh Financial]

We did our transaction like Sheridan basically. The weird twist for us was our buyer was actually trading his coach to his dealer back home, therefore his dealer was buying ours outright.

The dealer didn't want to wire transfer funds to my lien holder and the balance to me so he did certified checks. I told them and the buyer up front that I would not release my coach until both checks had cleared plus my lien holder had provided me with "written" documentation that the coach was paid in full. They totally agreed. I was still in my coach several days after the checks had cleared but everyone was okay with this. I maintained my insurance until the day the new buyer showed up and left with it.

I don't understand why the dealer would not wire. Maybe his bank charges a small fee? The other electronic way to move funds is ACH. Its an overnight move and funds are accessible the following morning. The problem with checks is what you mentioned, they take time to clear accounts. For us, we much rather send funds electronically. It also eliminates USPS, FedEX or UPS loosing the envelope. (been there done that).
Ken