Overhaulin'

My dad just passed away and I'm the exector. He has a car loan that is upside down. Is repo and option?

The car is worth about $8k but the load has a payoff of $12k. As executor, what consequences would there be if I let it get repo'd? Is that a good option?

Public Comments

1. If turned over to you, and you become lean holder. Could destroy your credit.
2. Since he doesn't have to worry about his credit rating I think that repo would be a good option. I'd call the loan company and explain it to them and see if there's some place you can turn in the car and registration.
3. You better check this with a solicitor as I think the debt dies with him.
4. Talk with an attorney before making any decisons.
5. You should consult an attorney. If there are at least $4k worth of other assets in the estate, then the loan should be paid off.
6. The bank that made the loan may be able to delay the distribution of assets from the estate until the loan is paid in full. Try to work something out while not letting the car get repossesed. If that happens, the bank may then say the car is only "worth" $5,000 and try to get more cash from you.
7. For you, there are no consequences. However, the remaining $4K will have to be paid back by the estate before any distributions are made. Remember that the repo will come with expenses and the lender may not get the full $8K for the car, so the estate may be on the hook for more than the $4K if you go this route. Personally, you are clear - all debts stay with the deceased and are paid or discharged by the estate (discharge only when the estate runs out of money). If you can get $8K for the car, your best bet is to have the estate sell the car and pay the remaining $4k rather than take the chance that the tab will be higher. (Obviously, if the car is the only asset in the estate, this is all a moot point).
8. It might really save you time to just get a car loan estimate online to verify what todays rates are. You might be really happy. Also if your credit is not the best, a lot of them are more willing to work with you. What I always tell friends is that an online quote at http://auto.lowratetoday.com is a no brainer.
9. The desision of the car and payment of the car loan is a matter for the probate Judge. Credit reporting ends with death. any claims agaist the estate is a matter for the Judge to decide They can protest but Judge can also rule they get nothing especially in low dollar estates
10. The estate has to pay off all debts etc before any one else gets a distribution. Therefore, if the car is repo'd, the finance company will come after the estate for the balance. As executor, you should do what is needed to maximize the net value of the estate.
11. Thomas H it's lien holder not lean holder and she would not be the lien holder because she is not the lender
12. mako_design, Try getting an online auto loan quote. http://www.simpleautoquotes.com/Auto-Loans.html The automated questionairre will give you results based on your credit and financial situation. It will only take a few minutes.