Purchasing a used Tab 320: Experience purchasing from seller who is still financing the camper?

Bugeub

Hello everyone,
My wife and I are purchasing a 2022 Tab 320 (yay us!). The seller financed their purchase with a bank and have not paid off the camper yet. The seller called their bank and asked how to proceed with the sale, but I am still a little confused about the process after discussing this with the seller. It seems that the seller and I will meet at a branch of the bank, I will provide a cashier check made out to the bank, but then the bank wills end the seller an electronic title within 5 business days and then the seller signs the title over to me. Is this a standard process? I am concerned that I won't have the title in hand or that the bank isn't sending the title directly to me. I am concerned about having the seller still in the process. I am not worried about the seller doing something dishonest, but I am worried that the seller might drag their feet. I would really appreciate some insight into how this works. 
Thanks

qhumberd

In my opinion this works well for the bank and the seller, but I see no protection for you unless you have a signed contract concerning the title transfer. What you describe is you paying off the seller's loan (which is great for seller and the bank), then the bank issues the title to the seller (as they were on the loan, and then it is the good will of the seller to transfer that title to you. Unless you know this seller well enough to trust them, you have limited protection in the description above.

When we bought our 400, the seller had paid off the loan, then had title in hand. I paid with a cashier's check and he gave me title. 

Bugeub

qhumberd said:

In my opinion this works well for the bank and the seller, but I see no protection for you unless you have a signed contract concerning the title transfer. What you describe is you paying off the seller's loan (which is great for seller and the bank), then the bank issues the title to the seller (as they were on the loan, and then it is the good will of the seller to transfer that title to you. Unless you know this seller well enough to trust them, you have limited protection in the description above.

That's totally how I see it. I have no reason to think that the seller is a crook, but you never know. And of course how motivated will the seller be to give me the title in a reasonable amount of time, etc. I'm concerned. 

qhumberd

@Bugeub Uncommon things do happen, uncommonly. Like a medical/family emergency in the 5 days waiting for the title, and the seller has to leave. Then there you are, not wanting to pressure someone with a family emergency.

NorthIsUp

I don't like it. He doesn't have the title. Let him take out a signature or other type loan for what's still owed. Why does the seller still owe on a 2022? It shouldn't be much. A 2022 was probably purchased in 2021, which is about 5 years ago. You're on the hook if something goes wrong. 
I'm not great with $$$ in life, but I wouldn't do this. 

mx4789

I'd say it depends on which state the transaction takes place in.  See if there any escrow companies, or title transfer companies available.  Basically, you send them the $$, they have the seller sign over the rights to the title to them, they pay off the loan and collect the title and then turn around and sign the title over to you and give the seller whatever money is left over. Or something like that... the key word is escrow which involves an unbiased 3rd party that acts as an intermediary for a fee.

Bugeub

Thanks for the suggestions. I will look into a title transfer company and some other options. It's either that, put a whole lot of faith in the seller, or walk away. 

mx4789

Try to think of it like this… people buy/sell cars and houses that are financed all of the time so there’s got to be a way that someone has already thought about or dealt with. Good luck! Be sure and post back here with your experience so everyone can benefit from what you discover! And post pics if you you end up with a Tab!!

westernstates

I ran into this same problem when I was going to buy a R-Pod camper at a discount price on a nearly new trailer. Long story short I lost my $1000 deposit because I felt unsure about the process of obtaining title. In the end I ended up buying a nearly new T@B 400 and am very happy I missed out on the R-Pod and ended up with the 400. Only wish I hadn’t put down a deposit, oh well, live and learn.

Bugeub

Mini update: We bought the camper. 2022 Tab 320 S in great shape. I talked to loan officers at two banks, the DMV, and a paralegal about the sale. They all assured me that this type of sale is very common (turns out my next door neighbor and a coworker bought campers with a loan and had to wait on title) and they assured me if I had a good bill of sale and confirmed the loan payoff then I could get a title if something happened. I also have the camper, so there's that. I got a cashiers check made out to the sellers bank, the deal happened at the bank, I confirmed the loan payoff before handing over the check, and I have a tight bill of sale. The seller was incredibly helpful, took great care of the camper, and that made us feel better about the deal.  My wife and I ended up spending about two hours with the seller after the sale going through the camper, the seller gave us all of her accessories, etc. It's still a leap of faith in another human, but I feel as good about the seller and the situation as I can. I will provide another update when we get the title...or don't get it! . 

We absolutely love the camper, by the way. Going out for a one night trial run at a nearby state park. Low's here at the northern end of the Front Range are going to be around 14. Alde got the camper quite hot in my driveway, but will be fun to try it out at lower temps. I've already upgraded the battery to lithium, checked glycol level, etc. The seller had it winterized at a dealer and winterization looks good. Will use RV antifreeze to "flush" cassette toilet. 

Wish us well!