Safest way to buy car from a private party who still owes $ and doesn't hold title

[wheresmybacon]

I'm interested in buying a car from a private party, but he still owes his bank money on it. To make things more complicated, the bank is USAA and they don't have a branch office where we live. He's selling it basically for what he owes.

The seller is military, married, and seems very trustworthy, but I've heard horror stories and I don't want to be the next one.

I have the cash, so no loan is involved on my end.

What's the best way to do this without getting screwed?

 

[brblx]

notorized bill of sale.

 

[wheresmybacon]

notorized bill of sale.

That's kind of what I thought, I was just hoping it's enough to protect me if for some crazy reason he decides to not sign the title over to me.

I drove the car today and definitely want it, I'm just a little nervous about the whole process, since short of both of us being teleported a couple states away to the nearest USAA branch, there's no way I know of eliminating ALL risk in a case like this.

Thanks

 

[spaceman]

meet @ the place where title is held
satisfy title with seller present @said institution.
inst remits title to you.

 

[Vette73]

Yep to both above.

Bill of sale and do deal at place that has title.

 

[HarryLui]

Give USAA a call?

 

[vi edit]

meet @ the place where title is held
satisfy title with seller present @said institution.
inst remits title to you.

Yep, that's my suggestion. Make sure they call their bank and validate they keep the titles on hand somewhere there. Sometimes they have them at an offsite vault/storage facility and need to ship them over.

 

[wheresmybacon]

meet @ the place where title is held
satisfy title with seller present @said institution.
inst remits title to you.

Normally this is what I'd do. I've done it before. But the title is held by USAA Federal Savings Bank and they don't have an office here. Nowhere close, even.

I'm going to give them a call.

Thanks guys

 

[yh125d]

What do you mean they hold the title? I have had two loans with USAA and I held title on both of them, or are you just referring to the lien they'll have on it?

 

[wheresmybacon]

I mean the lien. Sorry I'm not entirely caffeinated yet...

 

[zoiks]

I did this twice. Once when I purchased a G35 from a guy whose brother financed the car for him. He owed about 21k on the car and he gave me the forms that he downloaded and info faxed over from Chase. I went to WellFargo (my bank) made cashiers check in the name of Chase and mailed all docs with the owner to them (Chase). I had the owner write a bill of sale to me, had him sign it and signed it myself and drove the car home. The title came to me in the mail.
The second time however something changed. I bought a g37 from another guy who owed close to 19k and I paid about 28.5 for the car. I paid Chase at their branch to pay off the car but they told me that they would send the title to the original owner and not me? I asked them why and they told me that's how it worked. It certainly didn't work that way when I bought the G35 before. But in any case, I had the owner sign a bill of sale along with a clause that they'll send me the title when they receive it. They did do just that when they got it so it worked out but it did require me to trust the seller in sending me the title. Not the ideal situation.

 

[wheresmybacon]

I did this twice. Once when I purchased a G35 from a guy whose brother financed the car for him. He owed about 21k on the car and he gave me the forms that he downloaded and info faxed over from Chase. I went to WellFargo (my bank) made cashiers check in the name of Chase and mailed all docs with the owner to them (Chase). I had the owner write a bill of sale to me, had him sign it and signed it myself and drove the car home. The title came to me in the mail.
The second time however something changed. I bought a g37 from another guy who owed close to 19k and I paid about 28.5 for the car. I paid Chase at their branch to pay off the car but they told me that they would send the title to the original owner and not me? I asked them why and they told me that's how it worked. It certainly didn't work that way when I bought the G35 before. But in any case, I had the owner sign a bill of sale along with a clause that they'll send me the title when they receive it. They did do just that when they got it so it worked out but it did require me to trust the seller in sending me the title. Not the ideal situation.

This second method you've describe is how it's going to go down for me. I've been talking with USAA and the seller all morning.

In any case, after tomorrow I'll have a Bill of Sale, records of a wire transfer from my bank to his, and the car. So if for some strange reason he decides to pull a sneaker and try to hold the title once they release it to him, we've done as much as we can to protect ourselves.

 

[SpatiallyAware]

Request USAA fax you a copy of the title. This is normal and should not be a problem - I'd do this in case the bank 'lost' the title (I've seen this happen)

Have seller sign a bill of sale etc etc etc. Have them go with you to your bank to get cashiers check, and both of you go to post office to mail certified mail.

Have them sign bill of sale and you get car at that point. It could take awhile for him to get the title so keep in touch

 

[simonizor]

nm thought they didn't have the title.