| Author | Message | ||
| HondoJoeMC5
Rating: N/A |
Hi, I now have a buyer for my extra bus conversion. To make this deal happen, I personally am financing this for the new buyer at my recognized risk. I am not sure how to handle the title/exchange to the bus. I will contact DMV about placing a lein or retaining title via a lein. Can you give me any ideas how to handle the exchange? How have others handled this in past private party deals/? I do not want to hand over title & hope it all works out. Any tips appreciated. Thanks, Joe | ||
| John MC9 Rating: N/A |
Re: "To make this deal happen, I personally am financing this for the new buyer at my recognized risk. " You sir, are asking for major headaches. If you hold the title, you are carrying the liability on your back. If you are holding the lien, you will be chasing your cash. If you sign over the title, you have given it away. Sell the thing for money. Get the cash and sign it over. Forget the banking and financing, unless you're willing to have an ulcer before the next season. | ||
| HondoJoeMC5 Rating: N/A |
John, That's a good tip & one I am aware of. My question is about how to or placing a lein on the title. I will check at DMV...Thanks, Joe | ||
| Phil Dumpster2 Rating: N/A |
Just say NO! to seller financing unless you know the buyer very well. Really, truly, you don't want to get involved in this sort of thing. In Washington there are two parties that are listed on the title - registered owner and legal owner. For vehicles owned free and clear, registered owner and legal owner are the same. Otherwise, the financial institution is the legal owner and the purchaser is the registered owner. Remember, if your buyer decides to stop making the payments, it's up to you to chase them down, repossess the bus and sue for whatever damages or loss you incur. It's probably one of the best ways to ruin an existing friendship if your buyer is also a friend. As I like to say, "In God we trust, all others pay cash." | ||
| FAST FRED Rating: N/A |
Either find another buyer , or take only a FIRST mortgage on his house. FAST FRED | ||
| David Hartley (Drdave)
Rating: N/A |
Honestly, Don't do it! Whatever condition it is in now it will not stay that way and you will end up with a broken bus conversion back in your yard. Get cash and release yourself from all liability. Even if you place a lien on it if something happens you can be held liable by some sneaky attorney when the new buyer gets into trouble. Lawsuits are won and lost on handshakes and good intentions. You would be better off just giving the bus away with title than trying to worry and chase the guy down when he doesn't pay. Once he has it you have lost your money.... | ||
| Donald Lee Schwanke (Dontx)
Rating: N/A |
I faced the same problem when I sold mine. Another factor is that someone can park it back on their property and live in it, you would never find it, lien or not. I took a down payment on mine, then kept it locked in MY garage until the owner paid it off in full. Works well, if he has no money to buy it with, he obviously has no money to travel with either. | ||
| JimH Rating: N/A |
To answer your question -- Most state allow the title to be tranfered, in name, to the buyer BUT held by the lien holder. You MUST become involed in the title process to make sure that your lien is registered AND the new title is returned, by the state, to you. JimH | ||
| HondoJoeMC5 Rating: N/A |
Yes, Good Points. I think this is deja-vu. In other words I heard this subject batted around here last year or so. I concurred at that time to all of above comments. So the ball is in my court. References & down payments have all checked out fine. I appreciate all the comments. And will update later Thanks, Joe | ||
| John MC9 Rating: N/A |
Check with an attorney in your own area, and ask about liability. A bank requires the individual to obtain liability and collision insurance on the vehicle. Ask what the outcome would be, if the purchaser does not have coverage and is involved in an accident (you're the owner). The risks of this "deal" far outweigh any possible benefit. | ||
| jimmci9 #2 Rating: N/A |
when i bought my mci-9, it was seller financed... greg had no idea as to who i was.. and the arrangment required me to leave the bus in greg's possesion till it was paid for in full....all of 6 months... i could work on it at his place.. i changed out the engine, removed luggage racks and seats...it worked good for me.... | ||
| bobm Rating: N/A |
one good way to finance this kind of a deal is the one payment plan. Buyer makes one payment of the entire purchase price and takes the vehicle. kidding aside, make sure the buyer gets comprehensive insurance with you as a loss payee and gives you access to the policy information and notice of any cancellation. If the buyer has any real estate in your area get a permissive lien on the real estate for the unpaid balance and record your lien. Real estate is easier to find than a bus. Do a credit check on the buyer, your bank can help you, don't sell to anyone with less than 700 credit score. good luckdegojo | ||
| Jack Gregg (Jackinkc)
Rating: N/A |
Based on your questions, you need to contact an attorney to draft the necessary documents. That is, assuming you are going to go ahead after the comments on this board. But, in answer to your questions: in order to have a “perfected lien” you need a promissory note (to prove he owes you money), a security agreement (to prove the bus is collateral on the promissory note), and a lien filed on the title (to provide public notice of your lien and prevent him from selling it as long as he owes money). The note and the security agreement need to have the same date (or be incorporated in one document) and need to reference each other. The title lien will depend on how they are handled in your state, in short, if it is a “title holding state”. In other words, if the owner/ debtor gets to hold the title in your state. The note needs to describe what will happen if he does not pay. If your terms are not within state requirements, the note is “unenforceable”; if he figures out it is unenforceable, he does not have to pay you. If it is unenforceable and he does not pay then you will not be able to enforce the note in court. If it does not say what happens when he does not pay, then nothing happens: you don’t get your money. Also, you need to decide if the transaction should be under the uniform commercial code. If so, the transaction will be a purchase contract. Your documents will need to conform to the UCC. Remember the last time you financed a vehicle? The paper was three foot long and printed on both sides. Bankers and finance companies use standard forms, they cannot possible get it right every time. The standard forms are updated whenever they find a problem with them. The preceding is accurate but definitely NOT a complete explanation. I hope you don’t give him the coach until you have received all of the money that you hope to receive. Good luck. Jack In KC Former banker. | ||
| R.C.Bishop
Rating: N/A |
or....possibly do the deal and then "sell" the paper......immediately! (gotta know who buys paper, tho)  Works for me. RCB | ||
| Tom Caffrey (Pvcces)
Rating: N/A |
Hondo Joe, California may provide some protection to a chattle holder by making it illegal to remove the property from the state without your consent. Tom Caffrey PD4106-2576 Suncatcher Ketchikan, Alaska | ||
| John MC9 Rating: N/A |
That's about as good protection as a restraining order, Tom. | ||
| HondojoeMC5
Rating: N/A |
Well, OK, time to come up with plan "B". A bit more $ecurity $$. I am offering to "hold" the bus until then. The guy wrecked his previous MC5 last July 9 vacating hurricane in Gulfport, MS. and needs help getting back together. He is trustworthy & has great references, but as recognized there is too much risk involved. He is here with me & cannot pass my "driver test" Can't handle the 4 speed shifting well enough for now & . Old bus was automatic. Just can't safely handle the bus, which to me adds more risk. So for now, back to the storage garage. Nice detailed converted MC5A in Sunny 76* Palm Desert, CA!! I am very humbled by all above info & suppoprt tips. HAPPY NEW YEAR!!!!!!!!!! Joe | ||
| Tom Caffrey (Pvcces)
Rating: N/A |
Happy New Year, Joe. Tom Caffrey | ||
| airless in Jacksonville Rating: N/A |
Hondo can you tell me where he was staying at in Gulfport? There was only one other bus there that I was aware of and it was staying at the flea mkt. | ||
| HondoJoeMC5
Rating: N/A |
No, just to say it was a converted MC5 w/ Calif plates & FMCA tag | ||
| David Hartley (Drdave)
Rating: N/A |
I know this is off topic a little but has to do with people crying the woes of hurricane and storm losses. Here in Florida there were a number of reports of people that claimed to have losses caused directly or indirectly as the result of the storms or other anomolies. Much of what I heard was that there were a number of people that decided to use the "pity me" approach to get people to finance cars, trucks and other stuff including trailers and Rv's. They claimed that they were from the damaged areas and had losses. Several actually turned out to have aquired I.D. cards and even temporary unconfirmable addresses in the areas hardest hit. Beware of these people! No matter how good they look on references and paper. Don't give a complete stranger access to your property or finance stuff as you really may not be able to get the truth and could cost you more than you ever imagined. If you want to do that kind of stuff just try picking up a homeless person and taking them home to live with you. Might as well give them a checkbook, credit card and a power of attorney to take what they want. Not good ! My wife works for a company that builds and repairs trailers. They have been stiffed for $15,000 plus by a company that got into the "disaster cleanup" business. The sad part is that the same people are in another business and up until getting involved in the cleanup business they usually paid their bills. Now they don't even try! Seems that the owners are never around when collection efforts are being made. By not getting involved with people with these "sob" stories you are saving yourself from a world of nightmares and financial pain. I guess my attitude is that if you are dumb enough to be in an area under a storm warning or go into a devastated area after a storm and you get hurt or have a loss due to negligence whether yours or someone elses you asked for it. The horror stories of people that were trying to help that went into the Gulf region after the storms are not over yet. You have to understand that when people are desparate or despicable they will take what you have in a heartbeat. The bad guys will come out of the woodwork from everywhere if they figure they can take advantage of the good nature of "those that have". No good deed goes unpunished.... Sorry, I have tried to help people and all the good intentions can many times backfire when you let your guard down. Sympathy is one thing but stupidity lasts forever ! |