F
fullerupp
Guest
I am curious to find out how the closing process of a private sale goes. If the seller currently has a loan and the buyer is getting their own financing how does the title transfer process work?
If the buyer is getting financing then his/her marine financing company will arrange for the payoff of your existing loan. and will handle most of the closing paperwork for you. If the buyer is getting a second mortgage or some other form of financing (like a credit union) then there will be nobody to assist you with the paperwork. In this case you will need to pay off your loan with hiis money. It would be ideal to hire a third party to help you like an attorney to act as an escrow agent and to hold the title but it is possible to do it on your own. You and the buyer might be at a slight risk for part of the time but it usually works out fine.
Here is what you do: If you owe $75K and the seller is paying $100K for example. The buyer should have a $75K bank check written to your loan company (You will need to call your bank to get an exact payoff but we are using the payoff of 75K for this example). The other check can be written to you for the balance. When you and the seller meet to close you can sign a bill of sale for him, then you can enclose his payoff check in a fedex to your bank. Make sure his check is a bank check and you can even call his bank to make sure it is valid. Enclose a letter with the payoff stating your name, acct # etc, and make a note to have the lien release mailed to the buyer.
At this point you should have a bank check for the balance from the buyer, and you have a check going to your bank to pay off the loan. The buyer will have a bill of sale and the confidence that the lien release will be sent to him shortly. Of course if you have a title you should sign and give that to the buyer too. It is a good idea to have the bill of sale notorized.
All of this is discussed in detail in our Guide To Selling. You can gain access to it by Purchasing a FSBO Kit. The FSBO Kit also includes do-it-yourself boats sales documents to protect you during the transaction. The kit costs $79 and can be purchased by clicking herehttp://www.byowneryachts.com/cgi-bin/boe/F587F7DEE91DC0F7998BAE9CBC906E2E/sl1/home.
Let us know if you have any Q's.
Here is what you do: If you owe $75K and the seller is paying $100K for example. The buyer should have a $75K bank check written to your loan company (You will need to call your bank to get an exact payoff but we are using the payoff of 75K for this example). The other check can be written to you for the balance. When you and the seller meet to close you can sign a bill of sale for him, then you can enclose his payoff check in a fedex to your bank. Make sure his check is a bank check and you can even call his bank to make sure it is valid. Enclose a letter with the payoff stating your name, acct # etc, and make a note to have the lien release mailed to the buyer.
At this point you should have a bank check for the balance from the buyer, and you have a check going to your bank to pay off the loan. The buyer will have a bill of sale and the confidence that the lien release will be sent to him shortly. Of course if you have a title you should sign and give that to the buyer too. It is a good idea to have the bill of sale notorized.
All of this is discussed in detail in our Guide To Selling. You can gain access to it by Purchasing a FSBO Kit. The FSBO Kit also includes do-it-yourself boats sales documents to protect you during the transaction. The kit costs $79 and can be purchased by clicking herehttp://www.byowneryachts.com/cgi-bin/boe/F587F7DEE91DC0F7998BAE9CBC906E2E/sl1/home.
Let us know if you have any Q's.
