Help - Advice Needed

[T-Man]

Since I was laid off from work in Feburary, I've decided to sell my work car. I have a buyer who wants to pay cash for the car. Here is the problem: The car is not paid off therefore I don't have the clear title. The lean holder is the State Farm Bank and obviously they will not release the lean until they are paid. The buyer and I cannot just meet at the Bank because it is not located in this area. Here is my question: what is the procedure to complete this kind of transaction without a clear title in hand? Hopefully, someone out there has had this same experience.

I'm selling the car so I can keep my Valkyrie! I would appreciate your help since the buyer and I are meeting this Monday. Thanks.

[Super Santa]

I don't know a firm answer, but I would try calling the State Farm banking folks first thing Monday morning and asking them how to handle it.  If they suggest it, will probably create less frustration all the way around.

Good luck.

[Houdini]

Offer a notarized promissory note stating that you will send them the title as soon as you receive it from the lien holder.  I would discuss it with the buyer before they show up so there are no surprises; you’ll have to convince them to trust you to pay the note and send them the title.

[Valker]

I think this is what title companies are for, not just houses.

[Houdini]

Title companies charge for this service.  I've bought and sold cars without having to pay anyone to handle the lien so save your money.

Here is a link to transferring a lien

http://www.dmv.org/tx-texas/title-transfers.php#Removing_a_Lien

Here is the paper you need to fill out for transferring the lien.

http://www.dot.state.tx.us/txdoteforms/GetForm?formName=/130-U.pdf&preference=PDFForm&appID=/vtr&fileID=1233334&status=/reportError.jsp&configFile=WFServletConfig.xml

Talk to the buyer.

[Ghillie]

Coming from someone who handles lienholder paperwork everyday.

Your bank may allow the release of the title with the understanding you are sending a payofff. This generally only works for small banks you have a personal banking relationship with. Many bank have a form you fill out for this.

The easiest thing will be to put the buyer on the phone with your bank so he can send the payoff and they can send the title directly to him. The release of lien is actually on the title and there is no additional paperwork required to remove the lien. When the buyer receives the title, the lien will already be signed off. To avoid meeting the buyer a second time, I suggest you assign a limited power of attorney to the buyer. This allows him to sign off the back of the title where the seller is supposed to sign off. TXDOT has a form for this and you can get it at your local tax office. You will also need to complete the TXDOT bill of sale/title transfer doc. This form can also be obtained from your local tax office.

[Tinman]

When I bought my Valk the PO still owed money on it.
We met at my bank and the loan officer took care of everything.
He called the lean holder to find out exactly how much was owed and cut 2 checks.
One for the owner and one for the lean holder = total paid for the bike.
If the buyer is going to pay you cash that would be a little different.
But call your lean holder (State Farm?) they will know how to handle it.
Hope this helps!

[T-Man]

I really appreciate all of the advice. It was very valuable. Thanks again.