Purchasing Ice Castle with a loan/lien on the title?

Looking for experience or suggestions on purchasing an item that is currently on loan and has a lien on the title.

I’ve been searching for a used Ice Castle and what I’ve found is most currently have a loan/lien on the title. I’d prefer to go to the bank with them, hand the Cashier’s Check to the bank and obtain the lien card to transfer the title. However, that seems to be extremely hard to coordinate.

Few questions:

Is it possible for the seller to obtain a (notarized) lien card prior to my arrival? Is this something I should be worried about? Should the check still be made payable to the bank or is it on the seller?

This has to happen somewhat frequently with many people financing new fish houses. How does everyone handle such a situation?

Get a bank check from your bank to his bank or do a electronic transaction between banks is even better. That way the money never passes from your hands to his it’s between the banks only.

do not give any money unless you get a title with the lien removed.
or you will have to meet the owner at the bank, pay the bank, bank signs off, owner gives you lien free title.

The lien holder will not give out any sort of lien release until funds are paid in full. To answer you initial question they will not give out a notarized lien release prior to anyone’s arrival, unless the money is wired from your bank to their bank paying the lien off in full.

Not sure if fish house titles are the same as boats, but the banks do not have titles anymore they are with the seller, if a title is lost and a duplicate is needed, that will sometimes add weeks onto the transaction.

Several ways to go about this.
1. First and foremost create a bill of sale. That is signed by you and seller. This will be the only paper trail of the transaction and holds up a lot better than a handshake.
2. You could ask the seller how much his lien is for, I would want to see a written payoff from the bank because there is daily interest compounded and what your last statement reads is NEVER your payoff until it reaches $0.00. So obtain a written payoff from his bank, arrive in person or have your bank wire the money to his bank to collect lien release. You can then pay the remaining to seller is the agreed price is greater than payoff. Seller sign titles and bill of sale you created.
3. Meet the seller at the bank to exchange money and the bank can obtain a lien release. Then have seller sign titles and bill of sale, you created.

This sounds a lot worse than it is, but it can be a real PIA if not done properly. Best advise if buying used….Create a bill of sale that you and the seller sign and agree on. And never give any money until you have a title in hand. Verify the VIN# on the title to VIN# on fish house.

On a side note….welcome to my world of title issues and lien releases in the boat world.

Calvin is spot on 100%.
One question – are you paying cash or are you getting a loan. If a loan, your bank will often coordinate the transfer between banks for you.

I’ve done this multiple times on vehicles. Set date/time to meet at his bank with a lending officer. They do this frequently, so its quite routine. You’ll have the seller get you a pay-off statement for that date/time. Cashiers check to the bank for pay-off and balance to seller. Bank hands you the lien release statement and sellers signs the title over with the banker as a witness. Very simple

Thanks for the responses.

I am not taking a loan out on the ice house. I’m paying ‘cash’ most likely a Cashier’s Check as I don’t wish to carry that much cash.

I’m dealing with one individual right now that claims he can obtain the lien card prior to loan payoff. He hasn’t sent me the payoff amount, claims all I need is the title and lien card (which is true to my understanding), he will send me a picture of the lien card and title once he receives the lien card from the bank. Still not sure how he plans to obtain the lien card prior to payoff? Additionally, he wants the check made out to himself, which I am against unless I confirm the lien card and title are legit.

Once he sends me a picture of the lien card with the title I plan on calling the bank to confirm they are OK with this. Seems a bit odd. If I can call the bank to confirm, I’d be OK with this. Just seems impossible to obtain a lien card prior to payoff?

No chance he is able to get a lien card without paying off the loan. If you’re paying cash/cashiers check, I would just tell him you need to meet him at his bank. If he’s unwilling to do that, I’d be very leery of the situation.

Plenty of other houses without liens for sale. Also plenty of houses available not made by ice castle.

I would go over the frame and structure with a fine tooth comb before I would consider buying a used ice castle.

Cal is spot on with his advice. Another option is to take out a loan on the shack you are buying and then just pay it off in the first month. It would likely cost less than $100. I bought a boat from a private party last fall. I went thru my local credit union. They were very helpful and helped me work through everything. They deal with this stuff every day.

I also doubt he will be able to obtain the lien release prior to payoff. I’ve heard it is possible if the seller has a good relationship with the bank.

The wife and I froze our credit a couple years ago after the Equifax breach and don’t intend on unfreezing our credit unless entirely necessary. Although I may consider an ice house purchase a valid reason, the wife does not What if I called it a ‘tiny house?’

I’m sure this wont be the last time we come across such a situation. Appreciate everyone’s response.

The Bank due to Federal privacy laws will not be able to deny or confirm anything on the other parties loan. I am a Banker we give nobody a lien release unless we are paid. Deals like this smell fishy. Either Other party meets at his Bank or he has a real title and a notarized Lien Release. Accept no copies it has to be Real title and lien release.

Mwla

mwal wrote:

a notarized Lien Release. Accept no copies it has to be Real title and lien release.