Originally Posted by scope22 (Post 3321465)

Ok, so this guy is trying to buy my car, he is telling me that in order for his bank to give him the loan/money they need a copy of the title which needs to signed by me and show price of the car. I dont remember doing that when i was buying my car...has anyone experienced this?

Originally Posted by Memphis370Z (Post 3321512)

I suppose the lender may want a copy of the title to verify the VIN, ensure that it's not salvaged, etc. I've done hundreds of auto loans as a lender and/or undemocraticer and this seems somewhat odd, but this may be an underwriting requiremuntil or his particular bank for compliance reasons. The copy of the signed title with the sales price probably allows the lender to verify erify the purpose of the loan. Like TexasChuck mentioned, there's not necessarily any reason to distrust the potential buyer, but only move forward it it feels right to you.

Originally Posted by TexasChuck (Post 3321526)

There are some really good people on this forum! (Memphis370Z!). Thx.

Originally Posted by scope22 (Post 3321535)

Right that makes sense, basically he is asking for a signed copy of the title Before I get the money and give him the car, it seems to be a pre-approval process maybe, but what if I owned money and didn't have the title, the bank holding the title will not release it until they cut payoff balanc, I guess I could ask them to mail a copy so I can sign and give it to the other bank but seems like a pain in the ***

Originally Posted by Memphis370Z (Post 3321540)

Thank you, sir! :tiphat:



Not necessarily a pre-approval process; otherwise, they wouldn't be asking for a copy of the title for a specific car. With a pre-approval, the borrower is approved for an amount, usually based upon ability to pay (debt to income ratio). Once the borrower selects a specific car, the lender would request the VIN in order to check value, validity of the collateral, etc. But, I digress.

It may be different in Georgia, but in Tennessee, even if there is a bank lien against a title, the owner of the car still has possession of the original title. The bank lien is just noted on the title. The bank releases the lien the same way you would sell a car that is "free and clear" - by signing the title over to the new owner.

Hope this makes sense and is helpful.

Originally Posted by Memphis370Z (Post 3321540)

Thank you, sir! :tiphat:



Not necessarily a pre-approval process; otherwise, they wouldn't be asking for a copy of the title for a specific car. With a pre-approval, the borrower is approved for an amount, usually based upon ability to pay (debt to income ratio). Once the borrower selects a specific car, the lender would request the VIN in order to check value, validity of the collateral, etc. But, I digress.

It may be different in Georgia, but in Tennessee, even if there is a bank lien against a title, the owner of the car still has possession of the original title. The bank lien is just noted on the title. The bank releases the lien the same way you would sell a car that is "free and clear" - by signing the title over to the new owner.

Hope this makes sense and is helpful.