Buying with Outstanding loan on tractor?

[bp fick]

If buying a vehicle, on which there is a lien, deal directly with the lien holder, to clear it. Do NOT merely deal with the seller, trusting the seller to do so.

With electronic fund transfers, these matters can be dealt with in seconds, not days by using the mail.

If the seller should balk, for any reason, in allowing you, the buyer, to contact the lien holder directly to clear the account, then walk away.

 

[billfires]

When I bought my private sale NH 1920 in 2002 I paid NH Credit directly. They still sent the title and contract to the original buyer. It took about a month and the seller sent me the papers. Bill C

 

[sweettractors]

We check the courthouse records on file where the seller lives and if there is a lien on the piece, then we make the check out to the seller and the lien holder. That way, both parties have to sign the check before deposit or cashing. Ken Sweet

 

[johnrex62]

We check the courthouse records on file where the seller lives and if there is a lien on the piece, then we make the check out to the seller and the lien holder. That way, both parties have to sign the check before deposit or cashing. Ken Sweet

Not entirely sure that is safe anymore. My wife mixed up her checks while paying bills a while back and sent the electric payment to the water company and vice versa. They each deposited the incorrect checks to their accounts.

The electric company was paid $35 on a $230+ bill and the water company got $230+ on a $35 bill. The bank did not seem at all concerned that two private companies were able to cash checks made out to someone else by endorsing their own names on them. They blatantly told me they don't bother checking the endorsement line anymore as long as there is something there.

 

[MichKubota]

What if the tractor loan was put in wife's name or father's name etc? What if this is third purchase of tractor and first purchase has outstanding loan? It's not hard to conceive that the person selling the tractor is not the one with the loan.

What is really needed is ability to find if an outstanding loan exists on this tractor model number/serial number. I know this isn't possible but it seems buying a newer tractor (1 to 5 years old) from individual is kinda dicey right now.

Living in Michigan I read/see stories of people getting scammed everyday.

 

[bp fick]

What if the tractor loan was put in wife's name or father's name etc? What if this is third purchase of tractor and first purchase has outstanding loan? It's not hard to conceive that the person selling the tractor is not the one with the loan.

What is really needed is ability to find if an outstanding loan exists on this tractor model number/serial number. I know this isn't possible but it seems buying a newer tractor (1 to 5 years old) from individual is kinda dicey right now.

Living in Michigan I read/see stories of people getting scammed everyday.

Postulating situations whereby buying a used tractor, (with no title in Michigan), is such a risky situation that it is best to avoid altogether, leaves the impression that only new tractors can or should be considered for purchase.

I suppose it is always possible to paint the picture that black.

The reality is that people indeed buy/sell their tractors. I did. Liens are recorded. Liens can be cleared and business can be done.

There is no aspect of contemporary life wherein scams are not lurking. I, for one, keep on living somehow. My view of life, while hopefully using some cautious and by employing some wisdom, isn't gloom and doom. Sorry, I for one will not paint the buying/selling of used as hopeless. YMMV.

Best regards,

 

[sweettractors]

Not entirely sure that is safe anymore. My wife mixed up her checks while paying bills a while back and sent the electric payment to the water company and vice versa. They each deposited the incorrect checks to their accounts.

The electric company was paid $35 on a $230+ bill and the water company got $230+ on a $35 bill. The bank did not seem at all concerned that two private companies were able to cash checks made out to someone else by endorsing their own names on them. They blatantly told me they don't bother checking the endorsement line anymore as long as there is something there.

I have done the exact same thing a few years ago and both utilities contacted me and we got the problem resolved with no problem. Ken Sweet

 

[teg]

Along the same line in buying a tractor... How do you *REALLY* know if it's not stolen? Is there a national data base?

 

[sweettractors]

To keep us in the clear, when we buy from a unknown individual, we stamp the back of the check with something that reads like this: By endorsing this check, I am certifying that there are no liens or encumbrances of any kind on this piece of equipment and I am the sole owner. Ken Sweet

 

[blueriver]

What if the tractor loan was put in wife's name or father's name etc? What if this is third purchase of tractor and first purchase has outstanding loan? It's not hard to conceive that the person selling the tractor is not the one with the loan.

What is really needed is ability to find if an outstanding loan exists on this tractor model number/serial number. I know this isn't possible but it seems buying a newer tractor (1 to 5 years old) from individual is kinda dicey right now.

Living in Michigan I read/see stories of people getting scammed everyday.

The UCC filings not only show the lien holder it also shows the S.N of the tractor as well as any atatchments that were financed in the package.

You can track it by borrowers name, county, state, ID numbers.

Give it a try ... google your state + UCC and when it comes up enter your name or you buddies name...

Believe me when I tell you the financial companies are sure to file all the info, they do not want to lose out.

Stockyards also get a monthly update for any farmer or rancher who has their livestock mortgaged and They make the check payable to the seller and the bank!! That list is not the same as UCC ...