All,

I recently purchased a pre-owned vehicle and I am having the worst heartburn over it. I just got off the phone with the previous owner's credit union, and I nearly blew a gasket.

Two weeks ago (August 14th), I purchased a car via private sale and completed the transaction. My bank send over a check to the credit union to pay off the loan, and I paid the seller the balance using a cashier's check. I am using Bank of America to finance my loan, and they make you complete the title work, I.E you receive the title and take it down to the tax office to pay taxes and register.

August 19th rolls around, and there is no sign of the title in my mailbox. I call the credit union, and the loan still hasn't been paid off. They had lost the check that BOA sent them to pay off the loan. It took them two days and they had to get the CEO involved to find the check. Not only that, but the seller had to come and sign over the title. By the time all this was cleared up, it was 8/22. At this point, I thought everything was cleared up but.....

So today is August 30th and there is still no sign of the title in my mailbox. I called the credit union yesterday to ask where it was, and they told me it was mailed out on August 26th, but they couldn't tell me where they shipped it to (really?). I was perplexed and curious to ask why it had been three days to receive a mailed out letter when I live in the same city as the credit union office that held the title. I called again today to check on the status, and the rep told me they gave the title to the seller. Are you serious? That makes no sense at all and I would be out a boatload of cash. I spoke to the seller just now, and we are working to clear this up, but this entire process has been agonizing.

So, my question is this. What actions can I take here? The paper plates on my car expire on 9/14, but I am hoping to god I receive the title before then so I can just register the car and get everything over with. If I don't, is there any recourse that I can take here?

 

Yikes, reminds me of when I bought my Porsche and the seller sent the title to the wrong unit number.... (I paid cash) and I literally had to chase the UPS truck down the street and beg him to give me my title even though it wasn't addressed correctly.

I know what you're going through. I would say that your best bet at this point is to continue to work with the seller. (They) seem to be competent and willing to work with you up until this point, no?

 

Did you get a loan for the car? If you did, the title belongs to your bank and not you anyway, so they will have to deal with it. Not you. (I think)

 

I am trying my best, but this getting out of hand. The credit union has messed up on every aspect of this transaction. When I spoke to the seller, he doesn't have the title, which is what I expected. I think the rep on the phone was an idiot when they told me the title was given to the seller because if that was really the case, the credit union has a lot of explaining to do.

If the vehicle doesn't get registered past the expiration date on the paper plate, do I have to pay out of pocket to get a new temp tag?

You are correct, but BOA requires buyers to complete their own title work. It expedites the process. I have to physically take the title down to the tax office and list BOA as the lienholder, plus the taxes and registration.

 

Where did you get the temp tag? I've purchased many cars in Texas from private parties and never had a temp tag...just used the seller's tags or take-off ones from my car. Never an issue, carried a copy of the bill of sale with me until everything was registered.

How close is the CU to Houston? If not too far, pay them a visit.

 

The State BMV can re-issue the title. First thing I would do is get in touch with the BMV in the state where the title was issued, tell them what's going on. With a signed bill of sale the State can issue a new title, maybe directly to you. Regardless, the BMV can help you fix the problem.

 

I second Daddio. I have bought and sold cars with lost title. I just go the the Dept of Motor Vehicle and all gets squares away. I'm in Calif so I am pretty sure there might be a few differences but check with your DMV.

 

You'll be fine. You have a bill of sale or cancelled check or some proof of the transaction right? Mistakes happen and it's pretty much inevitable when a bank is involved. If they sent it to the seller, he'll give it to your bank and you're all set. The title shouldn't be in your hands anyway unless you paid outright.

 

I really would not get too worried yet. It's only been 2 weeks and this is a pretty common scenario. You know the credit union was holding the title and you have proof from BoA that a check was sent. It will get worked out. It would be a different story if you didn't know where the title was to begin with.

 

I wouldn't be worrying yet, everything sounds pretty normal.

If the title is lost, then as long as the lien is released, which is done electronically in Texas by most banks, the original owner can go to the DMV office and get a duplicate title.

 

This is my experience (in CA) so don't take it as gospel. The Title belongs to Credit Union as a lien-holder. As soon as the Credit Union's interest is met it will release the lien - but here is where it gets a little messy. You are financing the car with a loan from your bank. Before the bank will release the money it will send you paperwork for a Promissory note (the loan) and additional paperwork instructing the Credit Union to Release the lien (sign off on it) and send it directly to the new lien-holder (your bank). In theory you should never see the Title. Your bank then files a new lien on the Title (with it as the lien-holder) and you as the owner. The sticky part is that the previous owner had to sign away his right to the car. Once he/she did this, and the Credit Union removed it's lien, the Title was clear and should have been sent to your bank so that it could process it and so that you could register the car, pay taxes/fees etc. showing you as the new owner and your bank as the lien-holder. It sounds like somewhere along the way the Credit Union messed up and did not understand that that the car was being sold and that there was to be a new lien-holder (your bank). You should be able to straighten things out but it may take some time and consternation. Best of luck!!!

Well, at least that is the Theory.

As an aside, Texas, well, it's enough to come to grips with CA DMV and I have no idea how the Texas DMV works. This is my experience with them. I sold my old C2S to a guy in Texas. I paid off the lease on the car, and had the Title in hand with Porsche having released it's lien. I then signed the Title (as I was listed as an owner along with PFS who was listed as the lienholder) and handed it off once I was paid for the car. But Texas had a problem with the Title and CA DMV because I think that they expected a clean Title with just my name on it. In CA there is a 10 Day Rule on the sale of a car. That is, if you buy out a lease or loan and sell the car within 10 days you do not have to pay a sales tax on the car; the title, in effect, is passed on without being re-issued by CA and the new owner will pay the tax (incredibly enough CA is NOT double taxing it's residents and actually losing tax revenue when a car is passed on to someone out of state!!!). In Texas they accused my buyer of trying to perpetrate a fraud as the original Title had both my signature and the lien-holders release on it. In the end, he had to take a day off from work and have the Texas DMV call the CA DMV to confirm that everything was above board (and can you imagine the resulting clutter-fest of two different state DMV trying to iron something like this out!?).

 

Get a letter from credit union releasing it's interest in the vehicle. Then the seller or buyer can get a title from dmv.

The aforementioned letter needs to be notarized