Transfer Car Loan After Grandmothers Death

by Melissa

My grandmother bought a car in 2008 but because of health issues could not drive it from 2009 until her death in 2011. She gave my brother permission to drive the car as long as he made the payments. He is still making the payments but she is now deseased. How do we get the car put in my brothers name without refinancing it, the car is not worth refinancing at all and there is still two years left to pay on it before it's paid off. Please help!

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Dec 02, 2015
by: Anonymous

What if your mom left you the car in her will & you was making payments then all of a sudden they suspend the account and won't let us make anymore payments after a few months they call asking for back payments or we have to get a loan to pay for the car.

We was making payments but the stop letting us use the account number. I told them I have a will stating that the car would come to me and I make payments. They told me that I couldn't do that said my mom could just leave me the car even if I take the payments up? Is there means for legal action because they came and got the car after I said I was getting a lawyer.

Reply from

While some lenders will allow a surviving relative who is not a spouse or cosigner to continue to make payments on an auto loan after the borrower dies, they are not necessarily required to do so. Often the person who inherits the vehicle will either need to get their own car loan or sell the vehicle to pay off the loan.

However, laws regarding auto repossession vary by state so it's not a bad idea for you to at least consult with a consumer law attorney to find out if the lender acted legally here. If you need help finding one, use the search function at the website of the National Association of Consumer Advocates.

Jan 03, 2013
Transfer Car Loan After Grandmothers Death

Did your grandmother write a will? If she did, did she leave the car to your brother? If she left it to someone else, then your brother is not entitled to the vehicle.

If she left it to your brother and he wants to keep the car and assuming there is not enough money in your grandmother's estate to pay the loan's outstanding balance, he must continue paying on the loan. Otherwise, the lender will take back the car eventually. The same is true if your grandmother died without a will.

If your brother tries to change the title on the loan while there is an outstanding balance on the loan, the lender is likely to call the loan -- demand that its outstanding balance be paid off immediately. If that does not happen, the lender will either take back the car or require that your brother apply for a new car loan in his own name.

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