RV loan process - signing a POA before getting the funds

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Imagine4ever

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Sep 9, 2018
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My husband and I were looking for an RV (our third) for about 10 months and three weeks ago found the perfect RV, year, mileage, floor plan, all the upgrades, etc., a 2016 Fleetwood Bounder LX 33C, pre-owned.

I immediately shopped for an RV loan and Southeast Financial came back with the best rate and term, so submitted the application and got approved.
SEF wanted our IDs and NADA price and required a RV Inspection, which we wanted to do anyway. No one buys an RV new or pre-owned without a thorough inspection.

Anyway, I was wondering where my loan packet was, they supposed to email it to me. Come to find out that they want the private seller to send them a copy of the title (no lien) and sign a POA to allow SEF to change the title or certificate of ownership, before they release the funds. This is what SEF requires, I requested to see their RV loan practices/policies. Needless to say, seller is not comfortable with that nor am I and we like to for SEF to use an escrow service.

I am reaching out to the community to see if this is a standard process when it concerns a private seller or if anyone experienced a similar process or can advise how to handle this so we can fund the loan.

Thank you all in advance.
Peggy
 

Larry N.

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That sounds rather dangerous. I'd find someone else to finance, were it me. A power of attorney to change the title would seem to me to take away  many legal protections.
 

Jkoht

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Can you explain what a POA is? All I'm thinking is power of attorney which I don't understand what that would do. I just bought my used camper and my bank needed to see a copy of the title just to verify that it was indeed a "living trailer". All my seller did was email a cell phone pic of it to my loan officer. My guess is that they wanted to be sure the trailer was an actual physical thing and that I wasn't just taking money out on a spoken promise.
 

Gary RV_Wizard

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This is standard practice, so I'm not sure why so many are alarmed. The same thing happens when you buy at a dealer or trade in a vehicle, but it's not as obvious because it appears to happen all at once (it does NOT!).  Of course the lendor won't release funds with getting a title in exchange - he needs assurance there is actually an RV in the deal.  The POA (which should be limited to the title transfer) is a means of doing the transfer without requiring the seller to sign the title ahead of time.  The transaction should also have a formal bill-of-sale that prtects the seller and buyer legally while the funds and title are being exchanged.


The ideal way to do this is via an escrow service, but it still boils down to having faith in the business process. Afterall, the escrow service could be a cheat too.
 

darsben

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Central NY in summer beautiful Casa Grande AZ in w
Gary RV_Wizard said:
This is standard practice, so I'm not sure why so many are alarmed. The same thing happens when you buy at a dealer or trade in a vehicle, but it's not as obvious because it appears to happen all at once (it does NOT!).  Of course the lendor won't release funds with getting a title in exchange - he needs assurance there is actually an RV in the deal.  The POA (which should be limited to the title transfer) is a means of doing the transfer without requiring the seller to sign the title ahead of time.  The transaction should also have a formal bill-of-sale that prtects the seller and buyer legally while the funds and title are being exchanged.


The ideal way to do this is via an escrow service, but it still boils down to having faith in the business process. Afterall, the escrow service could be a cheat too.

I guess it boils down to doing business with a an institution you are familiar with.  I have never had to do this. Of course it has been a few years since I financed anything, but I always remember getting a check from my bank and giving it to the seller. I bank with a small bank where you still speak to the book keeper and if you go in the bank often enough they remember you.  Times they are a changing!
 

Isaac-1

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SW Louisiana
I financed my current coach through a local bank and they gave me a cashiers check to pay the private seller. Of course I have a substantial relationship with the bank so that may make a difference.
 

KandT

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When I sold my last RV, I had to take a pic of the title.  No big deal. 

I am not sure what is "Standard".  Oh and I think I had to sign a purchase order agreement saying I was intending to sell the RV for "X" dollars.

Not a deal at all.
 

Gary RV_Wizard

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What is "standard" is to exchange the title for the cash. What is not-so-standard is the procedure for doing that, including the time it takes.    If the lendor asks that the seller hand over a signed total or a POA authorizing the transfer, and says when I get it I'll send the money at some time in the future, folks naturally get antsy.  We've all had an experience where the company fumbles the ball, or simply marches to their own drummer and both seller and borrower can be left hanging, with unexpected delays and a stiff-arm from the bureaucrats at RV Loans Inc.
 

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