Process of buying a Car with a Lien

[HK Rides]

Hello,

How do I go about receiving titles with liens? I did a bit of research and know that I will have to request the specific payoff amount from the lender and pay them directly. I can't find a step by step on how the whole process works. Do I just call the bank and provide the vin number? For example, I am looking at a vehicle in the auction and it says in the notes that the owner is NASA FCU. I won't be able to obtain the owner's information to relay to them to get the payoff amount so how do I go about it? Also, how do i securely pay the bank? Escrow? Any help will be appreciated

 

[Tallcool1]

Hello,

How do I go about receiving titles with liens? I did a bit of research and know that I will have to request the specific payoff amount from the lender and pay them directly. I can't find a step by step on how the whole process works. Do I just call the bank and provide the vin number? For example, I am looking at a vehicle in the auction and it says in the notes that the owner is NASA FCU. I won't be able to obtain the owner's information to relay to them to get the payoff amount so how do I go about it? Also, how do i securely pay the bank? Escrow? Any help will be appreciated

Any Auction Vehicle that is owned by a bank/leasing company/credit union is either a Repo or a Lease Turn In.

You don't have to get a payoff or anything like that. The NASA FCU will deliver title to the auction and the auction to you.

 

[HK Rides]

Any Auction Vehicle that is owned by a bank/leasing company/credit union is either a Repo or a Lease Turn In.

You don't have to get a payoff or anything like that. The NASA FCU will deliver title to the auction and the auction to you.

Appreciate that insight and that's what i figured. This was just the first time I have seen the seller put in the announcements "Owner - NASA FCU" so I wasn't sure if that made it different than buying a repo. Any advice when dealing with a lien on a trade in or if just buying a car from a private seller with a lien?

 

[Tallcool1]

Appreciate that insight and that's what i figured. This was just the first time I have seen the seller put in the announcements "Owner - NASA FCU" so I wasn't sure if that made it different than buying a repo. Any advice when dealing with a lien on a trade in or if just buying a car from a private seller with a lien?

For a trade in: Get a Payoff Authorization Letter signed by the person trading the vehicle. This way when the lender asks if you have permission, you can just email over the signed letter. Most of the time if you get the Account Number from your customer, the lender will talk to you.

Pay those trade in vehicles off as soon as the new loan funds.

Get a Power of Attorney signed by your customer so that when the title for the trade comes to you, you don't have to chase the customer for a signature.

If you are on RouteOne, there is a "Request Payoff" button and you can digitally obtain a payoff that way for many lenders. Not all lenders, but a lot of them.

Ask more questions if you have them. These are both really good questions.

 

[HK Rides]

For a trade in: Get a Payoff Authorization Letter signed by the person trading the vehicle. This way when the lender asks if you have permission, you can just email over the signed letter. Most of the time if you get the Account Number from your customer, the lender will talk to you.

Pay those trade in vehicles off as soon as the new loan funds.

Get a Power of Attorney signed by your customer so that when the title for the trade comes to you, you don't have to chase the customer for a signature.

If you are on RouteOne, there is a "Request Payoff" button and you can digitally obtain a payoff that way for many lenders. Not all lenders, but a lot of them.

Ask more questions if you have them. These are both really good questions

Thank you! Ok so just to confirm, I technically don't pay the vehicle off until I sell it? I am not on RouteOne but was looking into DealerTrack, do you know if they have something similar?

 

[zande299]

You will be required to contact the lienholder (like NASA FCU in your case) to get the payoff amount and any title transfer requirements. Once you have that information, pay off the lien directly using their secure methods (wire transfer, online payment) and then visit your state's DMV to register the vehicle in your name after receiving the lien release (and possibly the title) from the lienholder. Consider consulting a title agency or lawyer for complex situations.