Car Debt, Deceased Owner.

[wargoblin]

My father passed away not more than 2 weeks ago (may he rest in peace), and left his beautiful car behind.. Now, I found out that he owes and un-side-down amount on it. I can't possibly make the monthyl payments on this car. My mother co-signed the car, however she cannot cover the payments either. She wants the bank to just come pick it up. She already told the bank she wants them to take it away, but they need a death cert first. So before she could give that to them, I immediately told my mom they will probably charge her for the remaining ammount. But she asked them directly if she'd have to pay anything after giving the car back, and they told her "No". So I am confused now. Will a bank take back a car that has an upside-down ammount on it without any transfer of responisbility of payment for a deceased man? I need help, thanks.

 

[Michael Wechsler]

Originally posted by wargoblin
My father passed away not more than 2 weeks ago (may he rest in peace), and left his beautiful car behind.. Now, I found out that he owes and un-side-down amount on it. I can't possibly make the monthyl payments on this car. My mother co-signed the car, however she cannot cover the payments either. She wants the bank to just come pick it up. She already told the bank she wants them to take it away, but they need a death cert first. So before she could give that to them, I immediately told my mom they will probably charge her for the remaining ammount. But she asked them directly if she'd have to pay anything after giving the car back, and they told her "No". So I am confused now. Will a bank take back a car that has an upside-down ammount on it without any transfer of responisbility of payment for a deceased man? I need help, thanks.

The bank will not simply just take the car and all of you will live happily ever after. I am confident that they will charge you a fee for repossessing it and being forced to sell it AND will charge you the likely difference between how much the car is worth and what is left over after selling the car plus expenses. You might be better off privately selling the car and negotiating a deal to close the loan. Simply trying to take the easy road out and 'giving the car back to the bank' which is likely not a car dealership may result in something not quite good... take care of this with them and find out what is the best path given the above information.

 

[wargoblin]

Actually, since I posted that. Found out that the bank didn't have a co-signer for the loan. Couldn't charge us anything I guess, told us on the phone a number of times, after asking a number of times if we had to pay anything. And they just took it, and requested a copy of the death cert. All is fine now, for now at least. I hope they don't suddenly jump back and decide to charge anything.