I have this current situation and I would like to know how to resolve it -

- I have located a used car that i want to buy from a private party. I
am comfortable with the car and the price and would like to purchase
it.
- The current owner of this car had a loan outstanding on the car of
about $3000 with his credit union. He has already paid off this loan
and that credit union has (probably) told the DMV that the lien has
been released. But DMV says that they will mail the title in 2-3 weeks. 
- I have a loan approved from my credit union for the purchase of an
automobile for the requisite amount. This amount is around $8000.
- My CU requires the title to release the loan for the car. They
mentioned that if the car is under lien they can directly contact that
lien holder and get the title.

But, since the loan has been paid off and the title is not yet with
the previous owner, what do I need to do to
a. Ensure that my loan amount is released
b. I do not have to pay upfront cash to get the title transferred in my name.
c. I don't have to wait 2-3 weeks to buy/take delivery of the car.

Please respond ASAP, since I am looking to buy this car immediately.

rajeshj,
First thing is to understand that your credit union is not only
protecting itself but you and this should not be forgotten, as if the
debt has not been repaid in certain circumstances, you can be held
responsible for it.

Strategy to attempt.
1A. Contact present owner and ask where current title is. If it is
with his credit union the ?Pink slip? can be signed over in accordance
with procedures set out in the following link:
http://www.dmv.ca.gov/vr/vr_info.htm#BM2522
1B. Contact your credit union and ask if they will accept direct
confirmation from the current lien holder (present owners credit
union) that the debt is cleared. If so have this instigated and
transfer should then proceed.

2. If the title is not with the Credit Union, where exactly is it? Can
its release be expedited by the current owner attending the nearest
D.M.V. office (location finder see here:
http://www.dmv.ca.gov/fo/offices/toc_fo.htm  (if applicable
appointments are advisable, phone 1- 800-777-0133)).

3. As the hold up is on the sellers side can an arrangement be made
between you to have the vehicle until the title is returned (you are
doing him/her a favour in buying the vehicle, not the other way
around?)

Note: My experience is in banking (but not in California). I have had
this situation many times and I have on occasion used discressionary
powers to get things done but what ever way things happen please
ensure that your position regarding ownership is adequately protected.

Kind regards,
gfmaster