Buying a Used Car with a Lien
I’ve never before purchased a used vehicle with someone’s financing lien on it. Can someone who has and understands the mechanics of it explain the process, please?
Seller is telling me that we can meet at his bank and I can pay out his lien first to the lender holding it and then pay the balance to him. I get this part. What I don’t understand is the status of the car during a “limbo” period needed for the lender’s lien to be removed from the VIN registration, which can take 30 days or more.
Technically, simultaneously with the payout the Seller would be giving me a bill of sale and I should be able to register the vehicle in my name. But wouldn’t the registry see the active lien at that time and make me responsible for it during that limbo period? Am I overcomplicating this?
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