I'm wondering if anyone knows the proper procedure for selling a car when the bank still holds the title?

I believe that a bill of sale needs to be created by the seller/buyer and then signed and notarized. Then loan is paid off, then seller receives the title from the bank, and then turns it over to the buyer. Right?

But when does the buyer get the car? Once the check clears or when the bill of sale is completed, or what?

 

Two options,
1) Take the deal to the bank and have it be a three person sell, the buyer pays off the car from the bank, and pays you the difference, bank fills out papers into the buyers name.

2) you sell the car, use the $$ to pay off the car, when bank mails you title, you forward it to the new owner.

I recommend #1, #2 can lead to going to court cause of crossed messages and playing th waiting game.

 

I have done #1 a couple of times already, however my loans have been through a local credit union.

What bank is your loan through adrian?

I'm in P-town as well!

 

Like what was said already, +1 for bringing in the buyer to your financial institution to get the payoff done. it's pretty simple if the buyer has either cash or qualifies for the loan.

you just go in to your local branch, he pays the bank (or makes a loan), the bank/credit union pays off your loans and transfers title to the new buyer. you hand over the keys, and VOILA you're done.

If cash or if the buyer is already approved for a loan, at my Credit Union, it takes no more than 30 minutes.

(Support your local Credit Union!)
-Cheston

 

I believe you do it the second way but you ensure the bank is sending the BUYER the title directly, thats where the issues can lie. As long as the seller doesn't keep the title from the buyer...

 

are you selling for the payoff or slightly more? That might make a difference but I've done the #2 method and it worked out well.

 

Alert your bank to the change in title and they can file it directly with the DMV.

There is a form you will have to fill out, but it's pretty easy.

 

i've done it plenty of time... one of these ways...

1) u pay it off, get the title, sell it, give the title to buyer
2) seller give you the money, you get the title, hand over the title
3) seller bank deal directly with you bank
4) seller pay your local bank, get a note from bank that it's paid off, go to DMV and to paperless title transfer

something like that...

 

I've sold a car owned by the bank. The keep the title in house (at least for me). I took payment from the buyer, went to the bank and paid the car off right there. They handed me the title, and then I went back to the buyer.