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AnswerThe exact laws and procedures vary from state to state, but the lender's lien on the vehicle will remain in full force and effect. If the payments aren't made, the lender can repossess the vehicle. It also depends on what the will says about the vehicle. It might be given to a relative, who would have to make the payments to keep the car. It might be sold to pay off debts, but the lender would get paid first. These are just some, but not all of the possibilities.

In most cases, when a person has a loan on a car and the person dies, the note is "accelerated", meaning that it automatically becomes payable in full immediately even if there are months and even years remaining before it has to be paid. The promissory note will state this in its terms. The note will have to be paid by whichever beneficiary or beneficiaries receive the car by will or by intestate succession, or, if they do not want the car, it can be sold to someone else to pay off the loan.

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โˆ™ 2014-04-18 21:08:11
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Q: What happens to a car loan when the owner dies?
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Related questions

If the primary borrower on a cosigned car lease dies. what happens to the car?

The person who's name is on the Title is the owner of the car.


What happens when a co signer dies and you stop paying on car loan?

bank takes back


Are you liable for a car loan if the owner files bankruptcy and the car was charged off?

That depends on what you're asking. Who filed bankruptcy? The owner of the car or the owner (holder) of the car loan? Did you co-sign on the loan? If you co-signed on the loan and the other signer files for bankruptcy, yes you are liable for the loan. If the owner (holder) of the car loan files for bankruptcy, you are still liable to the owner's creditors (and you need to find out who they are so you can get the lien released).


Can a car be repossessed if the owner dies before the first payment is due?

The car can be repossessed. The estate is responsible to return the vehicle and resolve the lease or loan.


What happens to the car and title if primary person on car loan dies and the secondary person has survived?

The estate has to settle the title. The secondary person can be held responsible for the loan until it is resolved.


If you have a car loan and the engine dies and will cost more to replace then the car is worth is there anyway out of the loan?

Nope.


What happens if a relative cosigns for a business loan and he dies?

my mother cosigned for a leased car for my sister. my mom has died. what do we do with the car? will my sister now be responsilbe?


What happens when your husband dies leaving an outstanding car loan?

The lending institution can place a claim for payment against the estate.


What happens if you co-signed a car loan and the primary borrower dies?

You are still respnsible for paying should the borrower die.


How do co-signers on car loans get off the loans when the other signer dies?

The only way you will get off the loan is to pay it off. If the other owner died, then you are now solely responsible for the loan.


Can you Lease a car from someone with a loan on the car?

No. In my experience and from what I've read, it is not wise to lease a car from someone with a loan. They can still be held responsible for the car if anything happens to it. If you cannot afford to make the payments and the bank comes to collect the car, and the owner does not have it, they can be arrested.


Can primary owner refinance a car loan without consent from co-owner?

A primary owner cannot refinance a car loan without consent from the co-owner. Both parties must agree to the action.


What happens to a car loan when the borrower dies and has no will or power of attorney and her kids are left without any documents stating they can now have the car?

The car is still subject to the loan, so the bank has control. Typically the bank will sell the car and pay off the loan, anything remaining would go to her estate.


Does the car insurance pay the debt when the owner dies?

Normal car insurance Liability, Collision, & Comprehensive will not pay off the loan. You would need to get the proper insurance for this purpose. Either life insurance or insurance for the purpose of loan payment.


What happens to a loan on a car when the loan holder dies and there is no cosigner or insurance on the loan?

The loan must be paid out of the estate (sell of home, life insurance policy, etc...) Otherwise, the estate will be held up in litigation and will not be closed or the beneficiaries will be forced to pay the loan.


Can you return auto if titled owner dies?

There are a number of ways of resolving it. Any loan against the car has to be resolved. If it was a lease, it could be returned to the title holder.


Bought a car now told its on finance Am i the legal owner?

you took a loan to finace the car from the dealer- the bank holds the title to your car- you are the owner and respondsilbe to pay the loan or the bank or fiance companmy can reposses your car


Can you register and insure a car if you are not on the loan?

If you're an owner, it doesn't matter if you're not on the loan.


What happens when you are a co-owner of a vehicle that was used as collateral for a loan by one of the parties and also had a co-signer?

""co-owner of a vehicle"" means you are listed on the TITLE and just that. ""collateral for a loan by one of the parties and also had a co-signer"" IF you are not on the loan, then you are not responsible for paying it. The signor and co-signor will have to pay the loan. However, IF you want/need the car, you may wind up paying the loan just to get the car. Otherwise, you lost your car if it gets repoed.


If a person sells a car and allows you to pay on installments but the person you bought the car from dies and there is no will what happens to the balance of the loan for the car?

It is paid to the estate of that person and is used to pay his unpaid debts or given to his heirs.


What happens if don't pay the car loan?

If you fail to pay your car loan the bank can repossses your car. It also goes on your credit rating that you defaulted on a loan.


What happens if your car loan is illegal?

then they take your car and repo it.


When a person who has an outstanding car loan dies?

it ends up in probate.


What happens to balance on car title loan when car is stolen?

Every car obtained on loan definitely is an insured one.One gives loan on insurance basis only.


What happens if you Car title loan in default and car is totaled?

Typically you need a car with insurance to get a title loan. If your car is totaled, the loan company are entitled to that money since they hold the title for your car.