Purchasing a boat with a Lein on it

[Mick2268]

Yep! Next……

You're going to pass up a boat because the seller hasn't paid it off yet? OP: If you have sufficient funds in your bank to pay cash, I imagine your bank will help you complete the transaction safely. They do it everyday.

[I.P. Freely]

You're going to pass up a boat because the seller hasn't paid it off yet? OP: If you have sufficient funds in your bank to pay cash, I imagine your bank will help you complete the transaction safely. They do it everyday.

No, I’ve bought a motorcycle a couple years ago that the owner still owed money on it. I live in Georgia, seller lives in Mobile. The bank with the title was outside of Birmingham. We met at the bank that had the title. I paid the loan, got the title in my hand and the motorcycle. Three hour drive for each of us.

Sounds like the op and the owner of the boat have a longer drive if they do the deal. For me, on that deal, I would pass. If I’m paying for something, I want title in hand. But that’s just me.

[skeeterator]

You're going to pass up a boat because the seller hasn't paid it off yet? OP: If you have sufficient funds in your bank to pay cash, I imagine your bank will help you complete the transaction safely. They do it everyday.

Yup, simple wire transfer from his bank to the lienholder, take all of 5 minutes to accomplish.

[paulrodbender]

My experience. I didn't take a loan to buy but if I did I would call my lender and his because your lender may have certain rules you need to go by. I kinda knew the seller, I called his lein holder and explained the situation. They asked me if I trusted the guy because I would have to pay them and they had to send him the title with it signed off from the lein and then you would have to turn the title over to me. They could not send the title to me, which is understandable. His lender then called me and informed me that they lost the title and he would have to aplly for a new title without the lein on it and then sign it and give to me. I did take the boat before I gave any money and kept it in my garage without doing anything to it until all was said and done and it was legally mine. It worked out Ok but I was on the edge of my seat for a couple of weeks.

[SkidooSteve12]

Its a simple transaction if you trust the seller. If not move on. But a lot of boats are not financed locally, even my local credit union takes 7-10 days to send me the title after something gets paid off.

When I sold my boat the guy wired 62k directly to my bank account without even seeing the boat nor the titles. I paid the boat off and sent him the titles within 30 days.

Yeah, the process is pretty slow. Last summer I bought a boat with a lien about 11 hours away and the financing credit union was in another state. I did it all wrong and the seller didn't tell me he had a lien on it until I was there, which the lien was for the repowered new motor. There was A LOT of good faith and trust in the transaction. I paid with a cashiers check and took the signed titles, bill of sale, and boat with me. Also all of this had to happen on a Sunday with my work schedule, or else it wasn't going to happen at all. The boat was rigged right and the price was right to get it and continue my son's high school tournament season as my other boat was waiting 3 weeks to get into a shop for repairs. Overall it was nearly a month before I had all of the documents to transfer the title into my name, but it all worked out just fine. A lot of communication and pictures of the boat before the trip, good communication during the test drive, and really detailed documentation of replacement parts and maintenance helped ease my mind about the risky transaction.

I know people have gotten burned by trusting too much, and I'm sure lots of people wouldn't go through a transaction like that, but it can work out. I saved a ton of money in my opinion with my boat upgrade.

[kry29]

Never trust someone to pay something off with your money. Its pretty simple to work with the sellers loan holder and they can cut him a check after they get their part for payoff. Then they will release titles to you or your loan holder

[Matt1212]

like others have said. if you like it, have your bank do the transfer with his lien holder. Lien release and titles come straight to you. No issues

[1BADAIR]

Use rec
lending

[jerzia]

I drove cross country to get the boat I wanted. His payoff amount was known in advance to a bank outside his state. We went to his local bank and they contacted my bank as well as the payoff bank, quick quick, done deal. Very easy process. The lien was released to me and the mailed me the title.

[wmitch2]

If this is the boat you want and you like the price, do not pass it up because of the lien. Sounds way more difficult than it really is. And technically much lower odds for anything shady. Just do it right. You can usually pay his lien holder the whole amount and they’ll cut him a check for the balance.

^^^^^THIS^^^^^ Make sure to contact his lien holder and have them aware of what's happening. THEY get the full amount of the sale, they will deduct what is owed and then send him the remainder and send YOU the Pink Slip

[DewRonInc]

I would contact bank or finance company and address the situation and ask how they want to handle situation. No big deal, get with owner after and have conversation based on what finance company said. Should go smooth….

[DewRonInc]

We bought a camper that was financed out of state and let our bank deal with it, went fine except that finance company was slow to release title, but my bank was on the hook, not me…

[dougie442]

Like many have mentioned, it's not that bad of a process and lenders/banks do this all the time. It's part of their business to know. Contact them. The only other process that may be a little sticky is when the banks do not hold the titles. In certain states, boats with liens have the titles held by the Department of Wildlife/Game Commision/DWR, etc. But it my experience the bank has requested an expedited Title Release from the state. Usually just a phone call from the bank.

[1BADAIR]

Rec lending did like an escrow thing or something for me . They held the boat title until everything cleared then I got the boat

[Z518 Comanche]

If you are financing, get both banks involved. Don’t give the owner the check if owes on his boat.

[Javelin387]

I can’t believe anyone telling you to move on really knows anything about purchasing a boat from a private seller with a lien. It is very simple, get his bank involved by way of three way call and the deal will go smoothly. The bank will guarantee the title to be sent when funds clear and you can register the boat then. Shouldn’t take more than a couple weeks. The good thing is, if you go and look at it and don’t like it, then you won’t have any paper work to do. I have bought multiple boats and sold multiple boats in this situation and allows get the lenders involved.

[DewRonInc]

Indeed sir no big deal

[CCGambler206]

I bought my boat this way we wrote up a sales agreement and I was able to pay his bank online and printed all the details off and I paid the reminder of agreed price to the seller. We had a notarized bill of sale and when titles were released we met and got them signed over.

[Stratos81]

The BBC cracks me up still. Electronic banking is pretty much the norm now, yet so many would pass. Too many guys here just walking around with pockets full of cash and only buying from the same I guess? Heck in theory I’d be more comfortable buying from a bank than an individual.

It might crack you up…. But when Im relaxing at 55 retired and enjoying life because I made intelligent financial decisions, I promise I’ll be cracking up

[DewRonInc]

I always like to keep cash, if u ever get in the middle of nowhere and tire shop doesn’t take cc u will understand why carrying cash is supremely important