Purchasing a boat with a Lein on it

[basshole51]

I am looking at a boat that is 8 hours away from me. The seller has it financed but the issue is he has it financed through a place 15 hours away from him.

In the past when buying a boat that had a lien on it I would just go look at the boat and if I wanted to purchase it I would just go to the local bank the boat was financed at and write the check to them for payoff and another to the seller for the remainder and they would get me the lien release and titles.

How would this work with his bank located so far away?

I feel I would just have to get a cashiers check (due to the amount), put trust in him to pay off the lien, then send me the lien release and titles? That seems like putting a lot of faith in someone far away I do not know.

Secondly if I get a cashiers check and do not buy the boat can I just return the cashiers check to my bank and they will put the funds back in my account?

I do not plan to finance...but maybe it would be easier just to let the bank handle all of this?

[DaveBrabec]

Had a buddy bought one. Seller never paid it off. Turned into a mess and he had to go back out of state and confront him to get it straightened out.

[barbarian]

3 way call with seller and his bank. Ask his bank how they want it to be handled for everyone's protection.

[Almag6]

move on to the next one....

[ksubasser24]

Simple solution. Line up everything with your bank first. Have the funds ready to go and know your banks policy for transfer of funds. Have the guy you are potentially purchasing do all of the same on his end. Go look at the boat and if you want to buy it call your bank and have them make the transfer to the sellers bank for payoff. Cut a check to the seller for the remainder or have those funds transferred to the sellers account. Your only issue would be waiting for the title on whatever items that state titles on boats. It would have to go to the seller for signature and then trust them to send to you. Have a conversation with your bank first and then with the seller. Their bank may have a different solution or be able to send you the title directly.

[ksubasser24]

I should note that I sold my 5th wheel when the wife and I moved to wisconsin in 2020. We left the 5th wheel with her parents in SD. Sellers gave wifes parents the cashers check and took the camper. We cashed and payed off note and then sent them the title. It was a trusting transaction that we safeguarded with a good bill of sale that was signed by all parties.

[JINXBASS]

The bank can and should order the title ahead of time. Some banks keep it on site, other have it stored somewhere. Make sure the bank has the title to the trailer and the COV for the boat in advance. Once you get there payoff the loan and immediately the boat owner can sign the titles over to you (along with a bill of sale) and done.

[06 SB]

It is an absolute REQUIREMENT to have his bank involved in the transaction. Under no circumstances give the seller a check that includes one dime for the bank. YOU pay his bank, the rest goes to the seller. Make sure his bank sends the title(s) to you as per the notarized BOS.

Personally, I would find another boat.

[paulrodbender]

I did it years ago and no isssues but call his lender as some have said above.

[99R93S]

I would also have a chat with his lender to verify details, payoff, title etc. From there I would talk to my bank and let them take care of it all. If the current owner has any issues with it then walk. As stated I would not give current owner a penny. Let the banks deal with the hassle.

[BoatBuggy]

There are other boats.

[barbarian]

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.

[fishin couillon]

Get your bank to call his bank so both are aware of whats going on and go from there......

[wareagle24]

I would pass but that's just me.

[Mark Perry]

I would contact the bank it's financed at and ask what their process is. Go to the source. You are gonna get too many conflicting answers otherwise.

[I.P. Freely]

There are other boats.

Yep! Next……

[99R93S]

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.

[BMCD]

yeah i sell my boats under the same circumstances. They sometimes send the titles to me and i have to forward them to the seller.

Heck I will not take a cashier's check for any boat I sell. I have the wire the money to me.

[Gsmith223]

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.

[Rangerdeepv]

Unless this is a deal of a lifetime...........move on. Too many moving parts to be done with too much risk.