I am interested in buying a car from a private party who has a loan from a local bank, and I need to know if there is a way to smoothly handle paying off their loan and receiving the title safely.
Sure, go to that bank with the buyer. Have any transfer of ownership documents that are needed with you, and pay off the loan with a cashier's check or cash. This way the bank will immediately release the title. Have the seller sign whatever is needed and have the bank notarize/witness the transfer as needed. Then finish processing the title work with your county or other entity where this is done.
If you can't visit the bank, you'll want something from the seller signed, that tells the bank to send the title to you. You'll still have all the ownership transfer documents executed in advance and you'll send the bank a payoff in the form of a cashier's check. Be sure to ask for the payoff as of the date you expect them to receive the check. They'll sign off on their lien and send you the title which you can then process with your county or state office so you can be shown as the new owner. Your government office can also tell you what the registration costs are, if there are any inspections needed or if new tags are required.
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Sure, go to that bank with the buyer. Have any transfer of ownership documents that are needed with you, and pay off the loan with a cashier's 