I traded in my car for another car ,the title is with the dealer.I also want to refinance to reduce mortgage payment,but the bank want the pay off letter of the car.I did not tell them that i took a new car. What should i do?

archwrig7

please help me

progunr

If I understand your question, you traded in a car that you had a loan on without telling the bank that held the loan?

They will find out soon enough when the dealer starts trying to obtain the title and finds out there is a lien on it from the finance company.

How were you able to trade in the vehicle without a title? Did you tell the dealer that you owed a balance on the vehicle? If so, then they would have obtained this information from the finance company before they made the deal.

If the deal was done properly, you may have to wait until the dealer pays the loan balance before you can obtain that letter.

Fr_Chuck

well if you traded a car in, the dealer who traded would have paid off the car. So contact the lender that you had the orginal car loan with and ask them to give you a letter stating that loan was paid in full.

If you bought another car, then the lender who you borrowed money on for it, would depending on the type of loan, either they hold the title, or they process your title and you get a copy showing them as lender on the title.

If you are doing something else, then perhaps everything is not on the up and up, and you should be concerned over your debt and titles.