father passed away owing on a vehicle.

by kbb
(noreast)

My father passed away owing money on a vehicle (we helped the bank find a buyer). The sale of the vehicle didn't cover the loan fully.
My father also had a new-ish mortgage and owed pretty much what the house was worth at his passing.
My sister(widow) and her two sons are now living in and making the house payments.
He also owed a credit card company, but they disolved that balance.
I'm the executor of the estate. I'm wondering what the bank that has the vehicle loan can do in reguards to the remaining balance.

thanks!

Comments for father passed away owing on a vehicle.

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Nov 30, 2015
 my father passed away owing title loan
by: kendra231717

My father passed away four years ago owing a loan place call title Max. He has combined the title with bankruptcy. After he passed away we have not heard anything about it until one day I called title Max. When he died the bankruptcy was dropped...shouldn't the loan be dropped too??? Well I am being harassed about it 4 years later.

Reply from DebtCollectionAnswers.com

Were you a cosigner on the loan? If not then why are they harassing you? It may be a good idea for you to talk with a consumer law attorney. If the debt collector is acting illegally, the attorney should be able to help you at no out of pocket cost to you.
Get free legal advice about debt collection here.
Jun 10, 2015
 Sale of vehicle with payoff due
by: SJJ

Contact the motor vehicle department for the state where your brother resided to find out the process for obtaining a copy of the title.


I am the Court certified administrator of my deceased brother's estate. The only asset was his vehicle which was not yet paid off. I understand the process that the amount remaining after the sale and the payoff goes into the estate for his heir; however, how can I sell his car when I have no title?
Mar 05, 2013
 brothers died, his car repossessed, sold and there is an overpayment
by: Anonymous

I recommend that you consult with an estate planning or probate law attorney in your area for advice.


My brother passed away 3 months ago. There is no Executor. When he passed, I, out of courtesy contacted the House Lender, Car Lender and many other creditors. Most were very good, gave me their condolences and went away, the house and car have been a whole different story. We contacted them and told them to pick up his vehicle as he had passed away, they then proceeded to tell me I had to sign a statement that I was the Executor. I told them no. For the last 3 months they have been harassing me. I sent them a death certificate and a letter stating there was nor would there be an Executor. He owed many bills. Yesterday we received a check from Bank for several hundred dollars stating they had sold the truck and this was the money for the oversell. It is in his name, What should I do?
Oct 19, 2012
 father passed away owing on a vehicle.
by: Debtcollectionanswers.com

The bank that financed the purchase of your father's vehicle will probably do one of two things in regard to the unpaid loan balance, which is referred to as a "deficiency." If the amount of the deficiency is small, the bank may simply write it off and you will not hear from them again.

If the bank wants to collect the amount of deficiency however, it can look to your father's estate (all of the assets he owned at the time of his death) to pay it. To do that, the lender must file a claim during the probate process for your Dad's estate. I do not know where you are in that process, but as his executor, you are obligated to initiate it and once it begins to notify all of your father's creditors about his death so that they can file claims asking to be paid. They will have a limited amount of time to do that.

If the auto lender does not file a claim during the allotted time, it's out of luck. The same is true if there is not sufficient assets in your father's estate to pay the deficiency.

You should also know that unless your name was on your father's car loan or if you co-signed for it, the lender cannot look to you to pay the deficiency if the lender does not get paid out of your father's estate.

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