Need some legal help with buying a car......

[RPHJR]

Ok, heres the deal. Thinking of buying a car (not a viper) from someone who is going through some financial issues right now. We have agreed on a price. Now, I know for a fact he has a loan with the credit union on this vehicle, that is very close to retail, book value. Hes upside down in this vehicle. What I am buying it for, will not cover the loan amount.... He has in his possesion an original title with no leins stamped on it.. What do I do??

I have to assume if he defaults on this loan (which still has a lot of life left in it), the bank could just go get a duplicate title(as they are the owner) and repo. the car... Am I correct?

I'd get him to sign a notarized letter, stating that he would not hold me liable. But what good is it, if he isnt the owner at this point. The car is still the banks collateral, weather I own it or he does. Right?

I told him I would call my attorney Monday, before we went any further (which I will do). But with all the car guys on this forum. Has someone ever come up against this situation before?? When I made the offer, I did not know he owed so much $$ on the car.. Should I run??

 

[Finally got it !]

You are pretty much right on. He can sell you the Brooklyn bridge but if is not the owner well........

 

[FLOORIN04]

run forest run

 

[A1998]

I'm no expert here but I would go to the local courthouse to see if a lien has been filed against the car. What if the loan company never filed the lien?? Never got the title, I suppose he could sell the car leagally!! Good thing you are talking to an attorney. Will be curious to see what he says. Keep us posted.

 

[MadMaxx]

How can he have the titled for a secured equity!?

 

[FLOORIN04]

I think if they used the car as collateral but no lein on title it is free and clear.And i don't think they can go after the buyer of new car.(if he traded in for another what we they do)What they could do is a judgement against him for the money difference.EX if he still owes 10,000 in debit and does not pay on the debit and car is gone then they can go after anything else that he owens or has equity in.

I don't understand how other states work.In pa the state has title or bank holds intill free of debit.You as owner of car have nothing not even a copy.If lein is on car the bank will have title.Md you get title but if lein on title then it is stamped on it.

in short my 2CENTS

IF CAR HAS LEIN ON IT STAY AWAY

IF CAR WAS USED AS COLLATERIAL THEN BUY IT


ANOTHER QUESTION is your friend going to default on loan completely or partial?
or
make payments on the rest of loan

please post with outcome of meeting since this may come up again