OT - Selling the Durango - need title/lien help, I'm financing it for the buyer Options

[seanery]

I'm selling my 2004 Durango to a friend. I'm financing it, he's making 25 payments for it. I'm leaving the country soon and want to get this done before I leave.

We've got a promissory note filled out, but I'm not sure what to do with the title. I assume he's gonna need it to register the car, but I want it back as security.

I guess I need to know, how do I put a lien on it? Do I need to do that, or just have him send me the title once it's registered, and I'll return it when paid off? I'm not too worried about getting ripped off, I just want a bit of security.

Thoughts, opinions, & experiences are all appreciated.

ps...I need to make delivery by Sunday (IMG:style_emoticons/default/biggrin.gif)

[Bruce Hinds]

Check with your local department of motor vehicles or what ever its called in your state, they will know. Each state is a little different, but the one thing that they all have in common is that you don't give up the title until you have the money or the appropriate loan/lien documents on file.
B

[seanery]

just found out from the DMV that I just list myself as lienholder on the title, then when they register it the DMV will send ME the new title, when it's paid off I sign it and give it to buyer and badda bing, badda boom we're done (IMG:style_emoticons/default/biggrin.gif)

[Ferg]

Be careful dude, friend or no friend this is a risky thing to do.

I would also draw up some damage clause documents, ect, just in case you need to take the truck back before it's paid... Also, make sure he shows proof that it's fully insured ect ect.

Ferg.

[skips]

I would ask a lawyer in your state.

Here in Florida, unless you have a security agreement (chattel mortgage) in addition to being named as leinholder on the title, you could lose your position.

Common in bankruptcies here where Dad puts up money for daughter's car, puts lien on title but gets no security agreement, Daughter files bankruptcy, Dad's lien is not recognized by the court and his legitimate debt gets lumped in with all the credit cards and trustee gets the car to sell off free of liens.

Could have been easily avoided with a contemporaneous security agreement.

Skip

[Gint]

That can be a very quick way to end a friendship. Ask me how I know...

[boxstr]

I agree with both Mikes. Ask me how I know also. I would tell the buyer to go and get a loan from a bank or mom and dad. It is not worth the hassle that you will have to go through when he can't make the payments because he lost his job, the SO tells him goodbye or the car is damaged beyond repair or stolen.
CCLINNOTABANK

[LvSteveH]

Darn, I was hoping to use the CCLINEZPMTPROGRAM (IMG:style_emoticons/default/sad.gif)

The only way to go into a payment plan is to accept the very real possibility that you will get shafted. If it still makes sense, then by all means proceed. In my experience, if someone lacks the funds or credit to be able to buy a car, then there's a reasonably good chance they will struggle to make the payments.

I can say despite half a dozen attempts, I've never had anyone successfully complete a payment program with me. As near as I can figure, the debtor must feel like the one holding the note already has plenty of money, so it's ok to spend the money on beer, strippers, and cigarettes instead of paying as agreed. Somehow there's always a sob story as to why they couldn't pay.

I once repo'd a parrot, no BS. It was a $1000 bird I agreed to sell to a friend for a few hundred so her grandmother could have some company. After a long period of no payment and avoiding me..... you guessed it "No tako Nicodemus..... No tako Nicodemus"

Damn straight I took Nicodemus. Got $750 within the week, paid my tuition, and Nicodemus didn't have to watch spanish soap operas anymore.

[siverson]

And I'll add that if someone can't get a loan from a bank, they definitely shouldn't be buying a 2004 Durango. How about a 1980 whatever until they can afford the car they WANT.

-Steve