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LADYLAWYER
LADYLAWYER, Lawyer
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Plan to sell travel trailor to another individual. I still

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Plan to sell travel trailor to another individual. I still owe on it, the buyers will make payments to me. What type of form do I need. They will also be responsible for insurance, and tag. Also, should the title be in their name with me as secondary lein holder?

Hello,

 

Unless you pay off the original lien holder or the lien holder agrees to remove you from the lien and add the new buyers as the responsible parties, there is no way to remove yourself as a responsible party. You can draw up a contract with the new buyers that says they will pay you x amount of dollars each month and that once the trailer is paid off, you will sign the title over to them, but you are taking the chance that they will quit making the payments, at which point you will not have the trailer and will still be responsible to the lien holder for payments. Of course, you would be able to sue the new buyers for breach of contract, or you can repo the trailer, but you are opening yourself up to a lot of exposure here legally. In any case, there would be no "form" to use, it would have to be a contract that is drawn up between you and the new buyers.

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Customer: replied 6 years ago.
I understand that I would still be responsible and this would be a contract between me and the buyer. I am beginning to think this is not a good idea and leaves me open to a big loss if they don't pay - $28,000.00. So, I should not do it, should I?
I would never advise any of my clients to do something like this. It exposes them to way too many risks. I have seen it happen too many times where the third party just quits paying and leaves the owner with no property and either ruined credit or still having to pay every month on property that he doesn't have. The better thing to do would be to sell this outright, have the buyer pay the bank, and have the bank title the trailer to the new buyer.

Edited by LADYLAWYER on 4/1/2010 at 3:58 AM EST
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