Question about pay off balance on car?

Question

The pay off balance is over 10K. I don't have enough money to pay it off. The person who wants to buy it

does have enough money to pay off the balance, but understandably she worries that paying off the balance

on MY car leaves her open to liability. What guarantee does she have that she won't get screwed if she's sends

in the pay-off balance on the car to my bank? Neither of us can find out good information about how to go about this. Please help.

Answer 1

She can send the money directly to the bank with a letter for the bank to mail the title to her. Both of you should sign the letter. The bank WILL send it to her. That way, when she gets the title, she can come back to you and have you sign it, instead of freaking out that she just threw away $10,000.

Answer 2

Call the bank / loan company.  You have to do a 3 way transaction at the time of sale at their office.

Every state and bank has a different procedure so you have to follow their rules.

Basically you both (buyer and seller) go to the bank office and she give the money to you, you immediately give the money to the bank, they release the title, and you had the title back to the buyer.  This all happens in the same office so there's no chance of anybody (especially the car seller) running out with the money or the title.

Good Luck...