When a loved one dies, the responsibility of handling his debts and assets often falls to his grieving family. If your loved one owned a car that was not yet paid off, your family can choose to either keep the car and transfer the title or sell the car and pay off the outstanding loan. You may then allocate any leftover funds accordingly. In either case, you will have to continue making payments on the loan to prevent the lender from repossessing the vehicle.
Instructions
- 1
Compare the value of the car to how much is currently owed on the vehicle. If your loved one owed more on the car than it is now worth, it is not in your best financial interest to keep the property. Call the lender and allow it to repossess the vehicle. You will not be liable for the amount owed on the car.
2Call the lender if you decide to keep or sell the vehicle. Ask to speak to a supervisor and explain the situation. Request that the lender defer payments until you and your family have a chance to straighten out ownership of the car through probate. Most lenders will oblige and defer one or more car payments until the transfer of ownership process is complete.
3Ask for the supervisors name and direct mailing address within the company. Mail a copy of your loved ones death certificate and a letter detailing your original conversation with the supervisor to the address you were provided with. Request that written confirmation of the agreement be mailed to your home address.
4Find out who intends to keep the car in your family. The person who intends to have the vehicle transferred into her name will be responsible for making the car payments until ownership of the car can be legally transferred through probate court.
5Come together as a family to make the payments if you intend to sell the vehicle and the deferment period runs out prior to the vehicle being purchased. One option is to have each family member pay a small percentage of the car payment each month until the vehicle is sold.
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