Seller’s Questions - Private Sale, New Buyer with Bank Financing

[Contributor]

Way back when I financed a used boat through my credit union, it was requested that I provide a professional appraisal. I hired a Marine Surveyor to generate the appraisal and the loan went through. I think with RVs, the lender will require something similar. The borrower can hire a professional RV appraiser and that should suffice.

 

[kajumaru]

Selling an RV to someone obtaining financing through a bank can be a smooth process, but it's essential to stay cautious. Make sure to verify the buyer's pre-approval letter and communicate directly with the bank to ensure the legitimacy of the loan.

Banks often have preferences for newer models, so your 2017 Aspect should be within the acceptable range. However, it's always good to check with potential buyers and their banks.

 

[Onyrlef]

These days few savvy sellers would accept that check and immediately turn over title and vehicle. There are far too many incidents of phony cashier's checks to take one at face value. The seller's bank takes the deposited check "subject to collection" and you typically don't know for sure whether the funds are real until 72 hours have passed. These days the ease of digitally counterfeiting a check has made cashier's checks no more reliable than any other.

Counterfeit cashiers checks are the primary scam on Facebook Marketplace and Craigslist.

 

[Kirk]

Selling an RV to someone obtaining financing through a bank can be a smooth process, but it's essential to stay cautious. Make sure to verify the buyer's pre-approval letter and communicate directly with the bank to ensure the legitimacy of the loan.

While the comment is certainly valid, the thread was from more than a year ago.

 

[Tulecreeper]

While the comment is certainly valid, the thread was from more than a year ago.

I do rather wonder - as the seller of an RV - since I would take cash only, why I would care where the buyer gets their financing. Bank of America or Louie the Loan Shark, they get the loan then turn around and give me the cash. After that, I couldn't care less if they default on their loan.

 

[Isaac-1]

It really depends how you define "cash" if you are talking about actual folding bills, then many / most people are not comfortable carrying the amounts of cash needed to purchase an RV. Personally I don't mind it that much, though for years I would drop off the nightly bank deposit for the family business, which would from time to time include enough cash to buy a reasonably good used motorhome.

 

[Gary RV_Wizard]

I hate to be a constant naysayer but I would be circumspect if a stranger offered me $10,000+ in currency. Counterfeit $20 & $100 bills aren't scarce either. Have the buyer bring the cash to your bank where they will examine it before accepting it as a deposit. Do that before signing over the title or giving the buyer physical possession, because the bank will confiscate any phony bills without any compensation. In fact, the will probably call the feds on you if there is any sizable amount of faux money.

 

[Ex-Calif]

I have done several vehicle transactions with private parties up to $8,000. I have done up to $30k with businesses.

I agree with Gary that one has to have their fraud alert on high-gain. My credit union does escrow and would escrow for me. If I were doing a mulit-$10s of 1,000s transaction I would seriously steer it towards this solution whether I was the seller or the buyer.

 

[Tulecreeper]

I hate to be a constant naysayer but I would be circumspect if a stranger offered me $10,000+ in currency. Counterfeit $20 & $100 bills aren't scarce either. Have the buyer bring the cash to your bank where they will examine it before accepting it as a deposit. Do that before signing over the title or giving the buyer physical possession, because the bank will confiscate any phony bills without any compensation. In fact, the will probably call the feds on you if there is any sizable amount of faux money.

I have done several vehicle transactions with private parties up to $8,000. I have done up to $30k with businesses.

I agree with Gary that one has to have their fraud alert on high-gain. My credit union does escrow and would escrow for me. If I were doing a mulit-$10s of 1,000s transaction I would seriously steer it towards this solution whether I was the seller or the buyer.

I agree...I wasn't thinking in the multiple 10's of 1000's of dollars.

 

[TheBar]

My easiest transaction was with my current RV. I was from another state which complicated the matter. I suggested doing the transaction at his local bank. I wired my money to his bank which paid off the balance on his loan then deposited the remainder in his account. His bank notarized the title over to me and I walked out with title in-hand.

 

[Onyrlef]

I have done several vehicle transactions with private parties up to $8,000. I have done up to $30k with businesses.

I agree with Gary that one has to have their fraud alert on high-gain. My credit union does escrow and would escrow for me. If I were doing a mulit-$10s of 1,000s transaction I would seriously steer it towards this solution whether I was the seller or the buyer.

Escrow what? Anytime you deposit a check and the bank holds the dispersal of funds until the check clears, that's escrow and all financial instititions do that. No fiduciary is going to release a title until the lien is satisfied, cash, check or the equivalent in corndog futures.

 

[Ex-Calif]

Escrow what? Anytime you deposit a check and the bank holds the dispersal of funds until the check clears

There are two parts to a transaction giving the funds and giving the title. If a seller, you escrow the funds until they clear, then give over the title.

If a buyer you escrow the funds until the title is cleared and released.

You don't have to deposit funds in a bank account to escrow. They are held by the bank until all aspects of the escrow are met.

 

[Onyrlef]

There are two parts to a transaction giving the funds and giving the title. If a seller, you escrow the funds until they clear, then give over the title.

If a buyer you escrow the funds until the title is cleared and released.

You don't have to deposit funds in a bank account to escrow. They are held by the bank until all aspects of the escrow are met.

What title holder releases a title while the buyer is still holding the check, cash, .......( escrowing the funds)?

 

[PancakeBill]

Just buy all your coaches here from other members. My last 2 motorhomes were purchased from folks here who we all know love and trust. Very smooth.

 

[Lou Schneider]

What title holder releases a title while the buyer is still holding the check, cash, .......( escrowing the funds)?

That's what a third party escrow is all about. The buyer gives his money to a third party which holds it and guarantees payment to the seller once all of the conditions of the sale are met. The buyer only gets his money back if the seller defaults on the sale. Really no different than buying a house.

 

[DonTom]

Counterfeit cashiers checks are the primary scam on Facebook Marketplace and Craigslist.

And even in person. Several years ago, in CA a coin dealer got ripped off with a cashier's check.

Here is what happened.

The bank that issued the 50K$ cashier's check is right across the street from the coin shop.

So the coin shop calls the bank on the phone, and talks to the bank. The bank said yes, they guy just came in and purchased the 50 K$ cashier's check with cash.

Then the "customer" buys 50K$ worth of gold coins.

The next day, this 50K$ check is rejected by the bank.

What the "customer" did was right after the sale, went back to the bank and said the deal fall thru and he wants his cash back from the real check.

This is after he made a perfect copy from his high-quality printer in his van that the coin dealer got stuck with.

-Don- Reno, NV

 

[Onyrlef]

That's what a third party escrow is all about. The buyer gives his money to a third party which holds it and guarantees payment to the seller once all of the conditions of the sale are met. The buyer only gets his money back if the seller defaults on the sale. Really no different than buying a house.

The context of the exchange was a credit union or a bank and no credit union or bank is going to transfer a title until the money to satisfy the lien is in their hands, not in the hands of a buyer or third party, guarantee ( IOU) or not. The escrow amount in a real estate transaction is the deposit, ordinarily a % of the selling price the buyer places into escrow to demonstrate they are "earnest" about buying the house and there are a number of conditions where the deposit can be returned, one of which is the deposit is always contingent on the buyer being able to obtain financing.

 

[Ex-Calif]

What title holder releases a title while the buyer is still holding the check, cash, .......( escrowing the funds)?

The escrow company has a fiduciary responsibility to adhere to the terms of the escrow and is a third party. In its simplest terms it can be the funds a clear and accurate and the title is free and unencumbered.

It protects both parties.

That's what a third party escrow is all about. The buyer gives his money to a third party which holds it and guarantees payment to the seller once all of the conditions of the sale are met.

Exacty.

The context of the exchange was a credit union or a bank and no credit union or bank is going to transfer a title until the money to satisfy the lien is in their hands, not in the hands of a buyer or third party, guarantee ( IOU) or not.

Exactly right. If the seller has a lien one of the terms of the escrow could be that the buyers funds are used first to pay and clear the lien and obtain free title.

After that the escrow company can be directed to disburse remaining funds to the seller and clear title to the buyer.