Buying a motorhome is difficult enough without making it even more difficult. What I am saying is that buying a motorhome from an individual complicates things more than buying from a dealer. What makes it more complicated simply boils down to money and trust. You are dealing with a lot of money in a motorhome transaction and it is necessary to extend a certain amount of trust.
I will share what is going on with this transaction. We are looking to buy a motorhome from a married couple who are giving up fulltiming and retiring to the sticks and bricks lifestyle. They have a lien on the motorhome and are upside down in their loan. So how does one make this work? I had some ideas of my own but I went to my trusted bank and got the experts opinion.
Now what made this deal convenient is his loan is at the same major bank as my bank account is so the transaction was going to easier as a result. My bank basically said that the process should go like this to protect me:
1. Obtain a Bill of Sale from the seller.
2. The seller should first pay the difference between our agreed upon sales price and the balance of the loan
3. The seller pays off their part of the loan and my bank will verify the remaining payoff of the loan which should be the agreed upon sales price (less earnest money)
4.I will then write a check from my bank to pay off the remainder of the sellers loan. The bank will provide photocopies of both checks from the seller and the buyer.
5.I will take possession of the motorhome and the deal is mostly done.
6. The seller will receive the title in 5-7 days and when they do they will mail the title signed by them to me.
So we plan to do all of this in one day at a bank between where they live and where we live. We will each write our checks and they will turn the motorhome over to us. They suggested that I start my insurance on RV the day of this transaction. After I get the title I can take the bill of sale and the title to our local tax office and get the motorhome registered in our state.
Now you know why I don’t want to jinx it…. thought these details might help others in this situation…