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Thread: How to purchase bike with a lien...

  1. #1
    Biker gunnert's Avatar
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    How to purchase bike with a lien...

    1. I'm in Virginia
    2. The bike is in New York
    3. Seller has title in posession
    4. Bank has a lien on title
    5. Selling price higher than bank loan

    I'd like to fly up, and ride bike home...

    I've checked the web... and it "appears":
    -I need to contact bank, get payoff, write a check (Bank Draft) to the bank, and deliver check in person to bank
    -Draft a bill of sale to be signed by buyer and seller outlining sale price with a break down of monies to bank and to buyer
    -Seller signs over title to me
    -I give seller Bank Draft for difference between lien and selling price
    -Jump on bike and return home....

    Have I got this right? I'll contact Navy Federal tomorrow and ask their advice but thought I'd post here looking to hear from those that have done this.

    No offense intended, I'd like to hear from those with actual experiences vice those that "think" they know what I should do...

    Thanks in advance!

  2. #2
    Outlander Omega Man's Avatar
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    I'm not familiar with the owner of a vehicle having the vehicle, and the title with the lien on it. If it's all OK you can set up a wire transfer before you leave and call it in (execute the transfer) once you have seen the bike. The title needs to be signed off (release of lien) or it will become a problem down the road. Perhaps you can call the bank and have them explain how they didn't keep the title (security) in their possession. OM
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  3. #3
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    First of all regarding Omega Man's comments. There are a handful of states, New York among them where the lender does not have physical possession of the title, the owner has it. With that issue resolved, I would personally consider handling the entire transaction with cash and here is how I would do it.

    With cash in hand, I would have an appointment with the seller to examine the bike and would have an appointment an hour or two later at the bank. You should call ahead for the bank appointment, tell them what is going to happen and ask them to have someone available with the paperwork ready. While at the bank, you can hand them the cash, they will take what is necessary to satisfy the lien and give the rest to the seller for him to deposit. He will then sign the title over to you.

    If you are adverse to the notion of cash, my second approach would be to arrange for a wire transfer and my third for cashier's checks or other certified funds. However, the problem with both of these approaches is making sure the owner's bank will credit the funds immediately. I use wire transfers all the time for large transactions and the time to have the funds in the receiving account varies. However, if you do intend to use either a wire transfer or form of "certified funds" check with the owner's bank in advance and determine what if any method of transfer they will credit immediately. You do not want to be delayed while they wait for the funds to be credited.

    Before you make the trip, contact your insurance company. Mine covers any new vehicle I purchase for 30 days without any notice to them or required paperwork. Even if your company has this policy you will need proof of insurance in order to obtain a New York "in-transit" permit to ride the bike back to Virginia to register it. Speak with your agent and get a "binder" in writing so you can get the transit permit. You will not get the transit permit without proof of insurance.

    Before you head up to look a the bike, speak with the seller and have him find out where the nearest DMV is located. After you leave the bank, you will need to go the the DMV and obtain the in-transit permit to allow you to legally ride the bike back to Virginia. It should cost under $20.00 and be good for 30 days to allow you time to register the bike in Virginia.

    Should not be this time consuming, it just is.

  4. #4
    Registered User lmo1131's Avatar
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    After you leave the bank, you will need to go the the DMV and obtain the in-transit permit to allow you to legally ride the bike back to Virginia.
    And it wouldn't be a bad idea to check and see if you might need an appointment at DMV as well.
    "It is what you discover, after you know it all, that counts." _ John Wooden

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  5. #5
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    Get a signed payoff letter on the bank's letterhead too. I just ran into this issue a couple of days ago with NJ DMV. I had the signed title with the lien release stamp with date, signature, banks name and address all on it. This still wasn't good enough for NJ ! Fortunately, the dealership (Pandora's) had what was needed in their files and DMV (barely) accepted it via fax. If they hadn't accepted it, they said I would have had to go to the main office in the state capital or wait for it in the mail and then return to the MVC office. The dealer said DMV's request was very unusual, but I just wanted to let you know.

    Before you leave, check with the bank that they can do this right away so you don't go up there, hand them the cash and they say it'll be handled in 3 days from the main office or something like that. If that's the case, you may have to FedEx them the check first and then travel up later.

  6. #6
    Douglas Williams
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    I have purchased and sold vehicles in North Carolina (NY may be different). The lien holder should be notified so that the title is available. My credit union keeps the title in Texas so I have to give them a couple of days notice. I meet the buyer at the credit union and once the lien is covered, the lien holder signs the lien release on the title. The buyer can then take that to the DMV and apply for a new title. I hope it's that easy for you.
    Sent from a Galaxy, far, far away

  7. #7
    Unfunded content provider tommcgee's Avatar
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    I wouldn't want to deal with any purchase without a clear title.
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  8. #8
    Old man in the mountains osbornk's Avatar
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    I would want to meet the owner at the bank and do the entire transaction there at the same time.
    'You can say what you want about the South, but I almost never hear of anyone wanting to retire to the North.

  9. #9
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    You need to contact NYS DMV to find out if what you want to do will work before you get here.
    You also need to contact the lien holder to find out what is necessary.
    You also need to contact VA DMV to find out what they want.

    You might want to think about getting another MOA member to look at the bike for you. Then do the transaction by mail/FedEx. Then register the bike in VA. Then pickup the bike. If the lien holder has the ability to do an escrow on the transaction, this would be very helpful.

    Having something go wrong when you get to NY is pretty good. The NYS DMV is pretty strict about requirements.

    Here is the link for NYS DMV for in-transit registration: http://www.dmv.ny.gov/register.htm#temporary . You need to follow the rules absolutely perfectly.

    Here is the link to remove the lien for NYS DMV: http://www.dmv.ny.gov/regtitle.htm#lien . I think you need to have it removed in Virginia, but I could be wrong.

    Also, wire transfers work well with two commercial banks. But, if one of the banks is not a commercial bank, then it can take 24 hours to complete. Non-commercial banks batch the wires and transfer them to a commercial bank once a day. There are a lot of non-commercial banks in NY.

  10. #10
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    There is also the issue of IF you have a lien holder involvement on your end. When buying a new car for a son that was deployed, Iran into his credit union's policy of being unwilling to release the check until they had the paperwork that shows them as the owner.
    In NY state DMV you will encounter a bureaucracy the likes of which, that have never been seen before by me! Another sidenote issue is time. E.G, my son that lives in Birmingham,AL has found that sometimes a personal visit to DMV is required & that visit can take the better part of his workday(same line for lge pkg via USPS) to get to the point where the barely awake clerk sort of pushes him aside with trivials. Far unlike the no waiting & no line, personal greetings & personalized attention that can include a good deal of effort to help with sticky buys like vintage bikes,wrecks & such) we get here in E. KY.
    DMV's are getting pickier these days do to increased scams. You also have to watch out for well intentioned sellers that have no clue how to make the deal work. The days of an imprinted bank check being as good as gold are in the past. I was told that the bad guys can even print USPS Postal Money Orders too.
    The at the bank thing works well but obviously harder to make happen. I used to buy cars from dealers on Visa cash advance but not any more.
    I've never heard of a lien being removed by anyone except the title holder in their own state where the title was issued. There is also a lack of protection in some states that don't have modern vehicle title laws-can also be great for dealing in old stuff or wrecks as adds flexability to deals.

  11. #11
    Biker gunnert's Avatar
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    Checked with the seller's bank today:
    1- Check made payable to seller and his bank
    2- Bank will call NFCU to verify check
    3- Bank signs off on lien
    4- Seller signs Title over to me
    5- Seller/Buyer/Witness sign Bill of Sale
    6- I go to DMV with proof of insurance and obtain "In-transit" tags for bike

    I fly to Albany, NY Wednesday morning, accomplish above, and plan on being back in northern VA by dark...

    Oh yea, my '09 K1300GT is "available" as of Thursday

    Thanks for all the comments.

  12. #12
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    I live just outside of Albany. The DMV is on the opposite side of Albany from the airport. Not hard to get to if you know where you are going. Difficult if you hit it during rush hour. Probably take you about 30 minutes to get out of the DMV if everything goes well. You should get in-and-out of the airport fairly quick.

    Make absolutely sure you meet the insurance card requirements perfectly. A lot of people get hung up on these requirements. Check the link above.

    Whether you take Rt 88 or the Thruway (87) down, watch for deer. Lots of them this year. Rt 88 is a very nice drive.

  13. #13
    Is that a gimmie?
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    I'd take the plates off the bike you're going to sell and take them with you. If you get stopped on the way home show the LEO your BoS and title. This is how I've always done it, but then again I've never been stopped and then had to explain myself.

  14. #14
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    Quote Originally Posted by gunnert View Post
    Checked with the seller's bank today:
    1- Check made payable to seller and his bank
    2- Bank will call NFCU to verify check
    3- Bank signs off on lien
    4- Seller signs Title over to me
    5- Seller/Buyer/Witness sign Bill of Sale
    6- I go to DMV with proof of insurance and obtain "In-transit" tags for bike

    I fly to Albany, NY Wednesday morning, accomplish above, and plan on being back in northern VA by dark...

    Oh yea, my '09 K1300GT is "available" as of Thursday

    Thanks for all the comments.
    As I was told that KY DMV had recently become "picky" by our county clerk, I had to get my bill of sale notarized, even though my KY vehicle title application had the sellers part/i.e., his signature notarized. Seems to be a time saver to get every signature notarized as a practice.

  15. #15
    Registered User f14rio's Avatar
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    seems to me

    there's a lot of other bikes around that would be a lot less trouble to buy.
    "Enemy fighters at 2 o'clock!...Roger, What should i do until then?"

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