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Author Topic: outstanding loan  (Read 4919 times)

gary brown

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outstanding loan
« on: May 10, 2011, 06:33:17 AM »
Hi i am from england buying  an rv 2006 hurricane 34n from a private seller,however the seller has an outstanding bank loan. As we are not coming to the US for another month and we want to have the RV ready for us to use when we arrive. We are then going to export the RV back to the UK. We have been trying to sort out payment and have some concerns.

   My question is,do we pay the seller then hope he pays the loan of or do we pay the bank  ourselves, if the outstanding loan is higher then we are paying then the seller pays the bank the diffrence if the loan is lower then we are paying then we could pay the seller the differnce.

How do we obtain assurances that the money we pay will go to the bank to pay off or go towards paying off the loan?

How do we find out what the balance owed to the bank is?

What happens if the amount owed to the bank is more than we are paying for the RV?

How do we obtain and how long does it take for the Title or pink slip to be released by the bank?

We have seen a company called escrow who can hold the funds in limbo for us. Has anyone had experience of escrow before?

What if any are the charges to export the RV to the UK?





Ned

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Re: outstanding loan
« Reply #1 on: May 10, 2011, 07:38:01 AM »
An escrow services takes care of all those little details.  The seller is responsible for paying off the bank loan, not you.  You send the purchase money to the escrow company and they contact the bank to see that the seller has satisfied the loan.  Only then will they release the funds to the seller, and I would also stipulate that you must have physical possession of the RV before the funds are released.  You should also get a statement from the bank that the title is now clear.
-- Ned -- Fulltimer 1997-2013
1997 Holiday Rambler Endeavor LE
2007 GMC Canyon

Gary RV_Wizard

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Re: outstanding loan
« Reply #2 on: May 10, 2011, 07:45:00 AM »
You make two separate payments, one to the bank (direct) and one to the seller for the balance, if any. The check to the bank can be made payable to both bank and owner if you (or they) prefer. Ask the seller for his payoff figure and contact at his bank for the loan payoff.

If he owes more than you are paying, it can get complicated. He has to pay off the balance, or get the bank to agree to a short sale, i.e. releasing the title for the amount you are paying.  The bank will mail the title to the seller within a 2-4 weeks, at which time he signs it over to you and you can take that to the motor vehicle bureau and get a new title issued in your name. Procedures can vary a bit by state and the bank involved.

An escrow company holds funds and makes the arrangements for paperwork in exchange for the money. Since there is a bank  involved, they will probably want to mange the exchange anyway, so they can probably serve that role. However, an escrow company could act as your agent since you aren't in the country to do it yourself. What Ned says applies.
Gary
--------------
Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

gary brown

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Re: outstanding loan
« Reply #3 on: May 10, 2011, 08:27:20 AM »
Hi Ned/Gary. Many thanks for the info.

             So if i pay the funds in to an escrow account they will settle the finance with the bank pay any over due amount to the seller,or if the seller is short they will leaze with the sellers bank.and maybe the bank will give the seller  a short sale,therefore releasing the title.But what your saying is make sure i have the rv in my possession once my funds are in the escrow account and the seller has been informed by escrow,i will then arrange a storge company to collect the unit till i arrive for my rv vacation in the states.

             I know about the cost of shipping back to the uk import duty and vat at my end,but do i have to pay tax on the sale in the states.We are using the rv  in the us for just 1 month.Thanks.

PancakeBill

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Re: outstanding loan
« Reply #4 on: May 10, 2011, 08:48:36 AM »
Yet one of the otherr pitfalls of buying privately.  If theough a dealer, all that is pretty seamless.  The escrow company can be a big help.  Good luck with it all, have a great trip!
Bill & Jolene W & Koda

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WA1RI

gary brown

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Re: outstanding loan
« Reply #5 on: May 10, 2011, 09:29:39 AM »
Thanks Bill.

Jeff Brown

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Re: outstanding loan
« Reply #6 on: May 10, 2011, 03:00:10 PM »
I recently sold a unit that I had a loan on.  I owed 9,000 and sold for 10500.  I downloaded a bill of sale from the internet that stated exactly what I would do and exactly what he would do.  The terms stated that he would first pay me the agreed price, I would then pay off the balance ASAP keeping them informed of the progress.

The seller paid me in cash (literally one hundred dollar bills.) I took that to my bank and deposited it the next day.  The I then did an online pay off to the titleholder bank the same day.  At that point I scanned the deposit receipt, and the printed pay off confirmation from the website and emailed both of those to the seller.  They did have to trust that I would provide the contractually agreed to service.  It took less than 10 days from the day they handed me the cash until they came back to get the signed title.  (After signing a DMV release of liability they drove off with the rig the day they handed me the cash.)

I have been on the buying and selling end of bank held titled vehicles and a contract and continued contact seemed to be the most important aspects of both deals. 

Hope that helps,
Jeff Brown
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SuperMike

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Re: outstanding loan
« Reply #7 on: May 10, 2011, 03:06:16 PM »
Gary, are you buying this unseen ?  This whole thing sounds as if it is frought with grief. Walk away and look around and buy when you get to the States.

Mike in St Albans, England
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Jeff Brown

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Re: outstanding loan
« Reply #8 on: May 10, 2011, 03:18:24 PM »
I honestly dont think I could buy a motor home that I had not been inside of personally.  Too many variables to go wrong, and really really wrong!  We dove many miles to look at rigs that had very detailed photos and were very very disappointed upon arrival.  Chances are the one you are looking to buy now will still be available when you arrive in June.

Jeff
Jeff - Driver
Wife - In complete control!
Bear - strapped to his seat! (9 year old son)
Duncan and Bailey (the dogs) - constantly looking for a different window
2002 Bounder 36S "King Charles the Great Bounder" or "Big Chuck"

seilerbird

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Re: outstanding loan
« Reply #9 on: May 10, 2011, 03:19:05 PM »
I agree with SuperMike. Buying an RV sight unseen can turn out to be a disaster.

Two years ago I was in the market for my current RV and I was living in Las Vegas. I saw an ad on Craigslist for what appeared to be the perfect RV for me at a reasonable price. Problem was it was located in Phoenix 300 miles away. I talked to the guy on the phone and he raved about how great it was and I would be wanting to buy it instantly. So I drove down there and boy was that thing a total disaster. It looked nothing like the photos and I could not find one single item on the unit that worked. The cabinet doors were all missing.

And remember this: An oral promise isn't worth the paper it is written on.

gary brown

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Re: outstanding loan
« Reply #10 on: May 10, 2011, 03:41:00 PM »
Hi guys. The rv is being inspected by auto critics form bumper to bumper top to bottom inside outside,if this is ok and a good rv then wot more can i do.

i spoke with escrow today and for an extra $60.00 they can arrange al the payment to the outstanding bank and get the title changed,as a member of rvt.com the cost is $175.00 plus $60.00,the rv inspection includes body paint and 25 page report which cost $700.00 so a total $935.00 and i take delivery of the rv before escrow pay of the balance.

i Dont think theres much more i can do to make this deal come off in the seller and the buyers favour.

Tom

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Re: outstanding loan
« Reply #11 on: May 10, 2011, 04:18:24 PM »
Quote from: gary brown
The rv is being inspected by auto critics form bumper to bumper top to bottom inside outside...

Is that autocritic.com? I know nothing about this company, but it appears that they check out the mechanical things, which is good. But they don't mention the numerous other aspects of an RV. In fact, they don't mention RVs at all, and say they inspect cars.

Quote
...if this is ok and a good rv then wot more can i do.

Maybe difficult from a distance, but a thorough inspection by an RV technician who understands the other systems, appliances, etc that aren't present in a car.

We don't mean to scare you, but so many of us have seen RVs that might be mechanically OK, but are disasters otherwise. My last RV was like that after 15 years of ownership (long story reported elsewhere). If I was unscrupulous, I could have sold that RV for a nice chunk of change, and the buyer would have been none the wiser. Instead, I "sold" it to the dealer for the legally minimum price of $1 on the understanding that they didn't pass it on to an unsuspecting buyer. I listed every single fault I was aware of, and made that part of the official paperwork filed with the DMV (our equivalent of DVLA).

BTW the dealer disposed of my old RV via a wholesaler. Many of these folks buy up junk for next to nothing, then sell them to unsuspecting buyers.
« Last Edit: May 10, 2011, 04:22:47 PM by Tom »
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gary brown

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Re: outstanding loan
« Reply #12 on: May 10, 2011, 04:24:33 PM »
Hi Tom.Thanks point taken.

gary brown

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Re: outstanding loan
« Reply #13 on: May 17, 2011, 11:37:42 AM »
Hi to everyone.

The rv inspection has found the rv in the best of shape with no faults all working correct and the motorhome drives like new.The seller had work carried out under warranty on the auto jacks and had it fully serviced for me as agreed.Other then a small scrath on the lower locker on the drivers side which the seller disclosed,al looks in the best of shape  and outstanding condition,i will now pay the money into escrow and move forward with the purchase.

By the way for an extra $60.00 dollars escrow will pay of the outstanding balance to the bank and pay the diffrence to the seller and arrange title change.Thanks for the advise.

Tom

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Re: outstanding loan
« Reply #14 on: May 17, 2011, 12:59:06 PM »
Sounds like you're about to own an RV. Congratulations, and please keep us updated on your travels.
Tom.  Need help? Click the Help button in the toolbar above.

gary brown

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Re: outstanding loan
« Reply #15 on: May 17, 2011, 04:30:41 PM »
Hi Tom.

We start our trip in early july.Will keep you up dated.Many thanks.

 

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