Defaulted title loan

[Vigilante]

Odd question.

I found a cheap motorcycle online and the catch is it has no title. I asked why and he said there was a car title loan on it and either he or the previous owner defaulted. Obviously I'm a little weary, but I was wondering if there was anyway to settle it or is the bike basically ****ed?

 

[Weather Man]

Useless, unless you have a good frame with title to move the parts to.

 

[MysticRob]

Do you mean there is a title but it's with the lender? And that whoever originally borrowed the money defaulted, yet sold sold the vehicle to someone else illegally?
If so, can't you simply contact the bank and assume the loan? Or is something missing? Until you square away any legal issues (reported stolen?) I'd be very leery.

 

[Vigilante]

Figured, I asked him about settling the debt and he said that's why he's selling it so low. It's "only" $1000 and the bike is worth $2k so he's selling it for half price since he knows you'd have to pay for the title back. My issue is what happens during the middle part when the title is still up in the air. He'd go down and pay the title loan with half the money I give him and he'd sign the title over to me.

Could be trustworthy, could really get screwed out of a lot of money. I shall pass.

 

[Joyrider564]

Get the VIN, find out who holds the lien, then see if you get a finder's fee to the repo company lol

 

[thomas91169]

Figured, I asked him about settling the debt and he said that's why he's selling it so low. It's "only" $1000 and the bike is worth $2k so he's selling it for half price since he knows you'd have to pay for the title back. My issue is what happens during the middle part when the title is still up in the air. He'd go down and pay the title loan with half the money I give him and he'd sign the title over to me.

Could be trustworthy, could really get screwed out of a lot of money. I shall pass.

Pay him the $1k and then pay the difference owed directly with the lender and then have them get you the title.

Even then the only way id deal with the process is if it was a $6k valued bike.

 

[Kiohtee]

Seems like a lot of work for a $1k bike that's only worth $2k. I say steer clear. And if need be, keep saving until you can get something nicer without the headache.

 

[R.D.P.]

Dont do it man. I have a bike right now with no valid title, it's not stolen or anything - I have the title but can't title it in my state because it was never titled in the name of the guy I bought it from. Absolute hassle that I'm going to have to deal with at some point and go through the court to get a new Indiana title.

Convinced me that title issues are NEVER worth the potential hassle. I just got done buying a new used SUV for the wife and wouldn't deal with any private sellers out of state that didn't have clear title in hand. Shame too, had to pass on a good deal, but I wasn't rolling those dice again.

 

[MysticRob]

Figured, I asked him about settling the debt and he said that's why he's selling it so low. It's "only" $1000 and the bike is worth $2k so he's selling it for half price since he knows you'd have to pay for the title back. My issue is what happens during the middle part when the title is still up in the air. He'd go down and pay the title loan with half the money I give him and he'd sign the title over to me.

Could be trustworthy, could really get screwed out of a lot of money. I shall pass.

So he's willing to pay half the loan amount to the lender if you pay the other half? And all of it gets done and transferred at the lender with you onsite, with everyone's full understanding title is being transferred to you and there are no hidden gotchas? If so...

I'd meet him at the lender and do it. Otherwise, I give NO money to any "guy selling it", nor do I do it at any other location than the bank, nor do I do it for anything less than the title free and clear. If any of those is red flagged I simply walk away.

If it's all kosher, just make sure the vehicle has clean VIN, maintenance history, etc, like any other vehicle.

 

[SHOdown220]

Yeah I've almost been burned twice on cars with title issues and a buddy almost did on a bike. Thankfully after a lot of hassle we got everything straightened out but I will never go through it again. If its not a clean title in hand that the person who is selling is on the title I won't touch it. I've came across quite a few cars that were bought but never registered and now are being resold with half the title (under the old owners name) already filled out and notarized. F that.

 

[oldmodman]

I bought a stripped Harley at a CHP auction for peanuts. Got the frame with serial number and pink slip. Nothing on the frame at all. Not even the wiring harness.

Then built one out of parts from one with a compromised title that I got really cheap. Took about three weekends to strip it and build it up again. Plus about a thousand in new parts since I wanted the bike to be like new.

Didn't have any trouble titling it with the CA DMV. Rode it for years and then sold it.

 

[jbs$]

No clean title in hand, then no money. Any other way is throwing your money down the sewer.

 

[truefiveo]

No clean title in hand, then no money. Any other way is throwing your money down the sewer.

Exactly....dont cheap out when it comes to buying a bike with legit paperwork.

 

[Kiohtee]

No clean title in hand, then no money. Any other way is throwing your money down the sewer.

I've bought plenty of cars where the title is at a financial institution. That's not technically "title in hand", nor was it "money down the sewer." :shrug:

 

[Vigilante]

I plan on skipping it, he seems like he has a plan, but I will just save up for something else to come along. Unless he drops his price to something way below KBB I just don't feel its worth the hassle.

 

[usmotox]

If the seller has no clean title they don't own it simple right

 

[SID297]

No clean title in hand, then no money. Any other way is throwing your money down the sewer.

This. It's not worth the risk/hassle.

 

[Blackoyote]

I've bought plenty of cars where the title is at a financial institution. That's not technically "title in hand", nor was it "money down the sewer." :shrug:

Yes, but surely those were vehicles that were owned by the person trying to sell it to you...this isn't the same as someone who doesn't legally own something trying to sell it to you.

OP, walk away. Anyways, a bike that's worth $2k with a clean title isn't worth $1k with no title. It's not as easy as they say it is to get the title, or else they'd get it.

 

[Kiohtee]

Yes, but surely those were vehicles that were owned by the person trying to sell it to you...this isn't the same as someone who doesn't legally own something trying to sell it to you.

OP, walk away. Anyways, a bike that's worth $2k with a clean title isn't worth $1k with no title. It's not as easy as they say it is to get the title, or else they'd get it.

I didn't say it was. Look at what I quoted in the quote you pulled from me. :kaboom:

In post #7, I actually recommend walking away as well.