When I sold a car privately with a lein on it to someone else who was getting a loan, here's how it went down, I met him at his bank, provided all info about my loan, bank issued a check to pay off loan, issued check to me for the equity, and I walked away. Of course this was easier because while he was from Dayton it was all done in state, if dude wants to sell you the car he should be willing to go to the nearest branch of your bank and do paperwork. Most banks that issue a check want the title pretty quick, and the process of paying off a loan and issuing said title takes a lot of time. Besides giving this guy a check to pay off his loan leaves too much up to the individual in my opinion.