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Old June 11th, 2018, 09:14 PM   #30
Ram Jet
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Name: Bill
Location: Port Huron, Michigan
Join Date: Mar 2017

Motorcycle(s): 2007 Kawasaki 250 Ninja, 1982 Honda Ascot FT500

Posts: A lot.
Quote:
Originally Posted by kdogg2077 View Post
So I found a good deal on a bike I've lusted after for some time but there's a catch as always. It's 3 hours away and the bike is under a lien.

Has anyone been in a similar situation? How did you handle it?

I'm assuming I would have to:

Pay for the bike and take possession of it. I'm guessing I couldn't ride the bike since I can't get insurance until I'm the official owner? So I'd need to trailer it?

Then wait for the owner to get the title from the bank and do a title transfer. I live in PA and I believe that banks will hold onto the title until the bike is paid for. They did when I got a loan to buy an FZ07 a few years ago.

Any help appreciated. As usual PA laws make buying a vehicle a huge pain.
I've read all the responses here. As a former banker I can tell you that all banks operate in accordance with the federal Uniform Commercial Code - regardless of what state you live in. A buyer finances a motorcycle the buyer gets a title in the mail in his name with the bank's name on it a lienholder. Upon payment/satisfaction of the debt the bank mails a lien release to the owner indicating the loan was paid and satisfied. The owner can then submit his title to his department of motor vehicles along with the lien release and receive a "clean" title in the mail, or the owner can present the title and lien release to a buyer and the buyer gets an title in his name with no lien on it when he registers the bike. No title with a lien release - no payment for the bike. It is a felony to sell "chattle mortgaged property" - property with a lien on it.

Before you waste 6 hours of your time be sure the seller can produce the title with a lien release or walk away.

Bill
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