Here is the scenario I am in right now.

I am the Buyer of this S2000 in California.

The Seller from California has a S2000 which he is selling to me but he has a lien on it he owes $7,300 on the loan.

The bank where he got the loan said if I pay the loan off and fill out a 227 DMV Form, it releases the title from the lien holder (bank) to the present owner (The Seller)

To make matters worse the Buyer won't pay off the loan, he wants me to go with him to the bank to pay off his loan and at the same time give him the rest of the money, he claims 227 DMV Form protects me.

I am skeptical to do this because I called the DMV of California and they told me not to proceed, only proceed when the Buyer pays off from his own pocket and receives the physical title.

I've tried everything but cannot think of how to pull this deal off where I am protected from any type of fraud.

Please post if you have some expertise in this matter and what to do.

 

sometimes you just gotta walk away

 

Maybe you can do a Bill of Sale/written agreement/contract basically saying that you are now the owner of the car? Notarized letter?

 

[QUOTE=li1p1aya,Aug 24 2007, 04:41 PM] Maybe you can do a Bill of Sale/written agreement/contract basically saying that you are now the owner of the car?

 

i did that when i bought my first S, we went to his bank to pay off his loan with my check, and i had my bill of sale and i drove the car home, then he got the title 1 week later and then he sent it to me so i could register it.

 

Hypothetically, couldn't the seller hold on the title and say you never sold the car to you?

 

watch out for scam artists.

 

Best case is to find a buyer who has title in hand.

 

The bill of sale is what protects you. You can get it notorized also. I guess the guy could say he never sold you the car, but it would never hold up. You have possesion of the car, bill of sale saying you bought it, and a check payment to the lein holder in your name.

 

What you do is, you give him a loan of whatever the amount he still owes. You cannot avoid paperwork in this scenario. You also need an agreement that he'll give you the rights to hold the title. In this case, think of yourself as a refinancer. If this is too much work for a car, I would say find another car unless you really like that car. Good luck.