a car with a lien on it
If someone is currently paying a loan on a car, can I buy that car
from them? If so, how is this possible?
-- Greg Gassed
The seller has to jump through some hoops to
successfully close this transaction, but it can be done. The central
issue here is to make sure that the loan is paid off so the lender
will release the lien on the car's title, allowing you have an unencumbered
title on your new wheels.
The easiest approach is to contact the lender and
inquire about the process. It's a routine process for them, and
they can guide you though the steps you need to take. It's also
a good idea to check out the title and vehicle registration requirements
on your state's department of motor vehicles Web
If you're a belt-and-suspenders type, you can use
service to complete the transaction. I'd decide based on the
comfort level I got from speaking to the lender about the lien release
process. Over the years I've only purchased one used car that had
an outstanding loan on it and that transaction went smoothly without
using any outside service other than a notary. But that notary was
at the lending institution, and the seller and I closed the transaction
at the lender's offices.