Selling my wheelhouse which still has a loan on it. What’s the best way to do this? Obviously the loan needs to be paid in full before the title can be transferred. Anything specific I need to be aware of?
What State?
-J.
Minnesota.
Through your local bank? If so, simple. Most of the time your bank will allow you to complete the transaction there. Buyer pays bank, loan paid off, you get balance and buyer gets lien release
As randy said, both parties go to the bank and they will take care of it all if your loan is local
Unfortunately loan is not local. House was purchased through Pleasureland who found a best rate at a small bank in South Dakota they use quite a bit.
Piggybacking off what these others have said…before buying toys and taking loans through dealers that get kickbacks from their sold finance packages, shop for loans locally. If you think you will ever sell something before it’s paid off, the process is extremely simple if you have a local trusted bank involved.
is the buyer paying cash or check? if the buyer is paying check, just have them pay the loan bank directly. Call the loan bank and ask them for specifics.
Uncertain on payment method, just getting general best practices for now. I’ll call the leinholder and see what they’d advise as well.
You’re about to give Dave Ramsey a heart attack.
Gone down this road. Easiest way for the transaction to be complete is for the buyer to send a transfer from his bank to the leinholder to pay off the loan. Easier if you have an account with the leinholder so they can transfer the balance to your account. They may request that when you call.
Selling my wheelhouse which still has a loan on it. What’s the best way to do this? Obviously the loan needs to be paid in full before the title can be transferred. Anything specific I need to be aware of?
I found a great deal on an Ice Castle fish house about 2 weeks ago. It had a lien with a bank in Coon Rapids. Seller seemed like a great guy but wouldn’t meet at the bank so I could pay it off and get the lien release. I almost did it his way because he was $5,000 less than any other fish house for sale. However, I moved on. Wasn’t worth the risk for me.
I think you’re the one who is SUSPECT, Chad.
I’ve never even heard of you.
However, I moved on. Wasn’t worth the risk for me.
Exactly! most likely he was never paying the bank back and you would have been screwed
Call your Leander and ask them the best way to go about selling it.
Spoke with the lender – buyer can pay them directly for either the balance of the loan, or for full asking price and then the bank would cut me a check for the difference.
Am I ok to hand over the title and house as soon as the bank confirms the loan is free and clear? Bank confirmed the lien release can be sent directly to the buyer if requested.
<div class=”d4p-bbt-quote-title”>Chad Luebker wrote:</div>
However, I moved on. Wasn’t worth the risk for me.Exactly! most likely he was never paying the bank back and you would have been screwed
I have done this but had the seller provide a pay off quote. I paid the seller only overage of the asking price after the payoff quote was met and got the signed title from him. I then went paid off the bank for the payoff amount and got the lien release.
I think you’re the one who is SUSPECT, Chad.
I’ve never even heard of you.
I have heard of you though………..
Am I ok to hand over the title and house as soon as the bank confirms the loan is free and clear?
I would think once the bank confirms the loan is settled you are free and clear of any financial obligation but until the title is transferred out of your name you are responsible for the fish house. At least this is how it works with cars. I will never sell a car without meeting the person at the DMV and watching them sign over the title into their name. I would recommend doing the same with the fish house. Probably wont get too many parking tickets or traffic accidents caused by a fish house but you never know. Best to be completely free and clear of everything rather than wonder
Spoke with the lender – buyer can pay them directly for either the balance of the loan, or for full asking price and then the bank would cut me a check for the difference.
Am I ok to hand over the title and house as soon as the bank confirms the loan is free and clear? Bank confirmed the lien release can be sent directly to the buyer if requested.
How do you have the title, if there is a lien on the item?
HRG
The lienholder is listed as the first secured party on the title. I have my truck title as well with a loan on it. Not sure if that’s a common MN thing?
I will never sell a car without meeting the person at the DMV and watching them sign over the title into their name.
Funny story time, Crappie. I had an old winter beater I sold for $800 because I needed a 4 door and this was a 2. Didn’t bother going to the DMV. The guy drove it to the Olmstead county courthouse THE NEXT DAY and was sent to prison…my luck. They ended up towing the car from downtown Rochester and I kept getting bills for it. I called the county and they told me I could pay the fine and pick the car up (seemed suspect) or notarize some forms and walk away.
I still kinda wish I paid the $250 bill and kept the car…nothing beats an old Zetec Escort with a 5-speed.
Get a personal loan or credit card to pay off the loan and then use the buyer’s payment to pay this off?
Minnesota also allows you to report the titled property as sold online: https://onlineservices.dps.mn.gov/EServices/_/
I just went through selling my Ice Castle to a person in Iowa. They wired money to Spire CU with the loan and they deposited the remaining balance into my account. The bank gave me a notarized lien release within the same day versus having to wait for a check to clear. It was nice to know there isn’t anything that could happen with bounced or fake checks as when a wire hits/clears it’s there for good.
You must be logged in to reply to this topic.
