Itemization of loan proceeds Purchase transaction

Posted By: Dodge

Itemization of loan proceeds Purchase transaction - 11/03/20 05:04 PM

I believe this is a basic early lending question, but we are doing things different then what I thought we are doing. Customer is purchasing a car from an individual who has a lien on the car. Does all the loan proceeds to go to the seller, or seller and bank with the lien to pay off loan?
Posted By: rlcarey

Re: Itemization of loan proceeds Purchase transaction - 11/03/20 06:33 PM

Not sure what that question has to do with a TILA disclosure.
Posted By: Richard Insley

Re: Itemization of loan proceeds Purchase transaction - 11/05/20 12:46 AM

If you're taking the vehicle's title as collateral, you darn-well better be the one who pays off the previous lender! Otherwise, you've made an unsecured loan.