How do I sell my car to an independent buyer if I still owe on it and don't have the title yet?
Question:
Answer:
What, you mean you don't have the $13000 sitting in your checkbook to just pay it off, and make the whole thing easier? Okay, it's pretty much a rhetorical question. The good news is, your buyer probably doesn't either, which means that he'll be going to his bank to make it all happen. And that's how you get it done safely and securely.
The buyer's bank will handle everything for you. They'll call your lender, get the payoff amount, have you sign a bill of sale, power of attorney statements allowing them to transfer the title to their customer upon payoff, and mileage statements...basically everything needed to document the sale properly and completely assure both you and your buyer that it's all done properly. And they usually don't charge you anything to do all of this--they do it to get the loan. And best of all, you leave with a cashier's check for your equity.
Even if your buyer does have the cash to just write a check for the entire purchase, he probably also has a bank or credit union that is holding that cash, and they will generally be glad to do the same stuff for you and the buyer--POA's, bill of sales, etc.
By involving a trusted intermediary (a bank or credit union) you have good security that it's all handled properly and your loan will be paid off promptly, etc. And in the highly unlikely event that something goes wrong you have the full paper trail showing what you agreed to. Good luck!
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