What does it mean when automotive dealership sends a clear title?

Question

My dad got a Tahoe in June2006(he had signed one of those credit life policies).He died in August2006(we didn't no till then about him signing credit life, he did have all the illnesses on application, he and dealer, loan manager(which they both knew dad had all illnesses) still let him apply. So death happened, mom went to dealership and signed to release credit life(they would have to give back policy money, never happened). We've been writing and calling the company trying to see how to put in my mom's name. Some one I guess messed up and sent her title(so if she has a clear title showing my dad as owner, then she doesn't owe anything does she.(No more payments for Tahoe, free and clear). I f someone please give me honest answer, would appreciate it, thanks

Answer 1

The policy that he purchased paid the balance of the loan, so now the vehicle is owned free and clear by your dad's estate. No further money is owed!

Seeing as they insurance company did not refund the premiums in a timely manor, they had to pay the claim!

Check with your MVA or the lawyer handling your fathers estate to see what the requirements are to transfer the title to your mother!!

Answer 2

If she has the title then they would have to go to court to try to collect anything, and even then they'd probably lose. If they intentionally sent her the title they should have included a letter explaining that the debt had been satisfied. My guess is that the 'release credit life' that your mother signed was some sort of insurance that paid the balance of the loan.

Answer 3

depending on the state you live, on the front of the title should have the origianl lien holder...under the name is should be stamped and signed by the original lien holder showing the lien release date. if it does, you own the tahoe, if not, you may have a problem with the state or original lien holder. if you need further explaination, go to a messenger service or dmv for your state. to transfer the name on the title to your mother, you will need an original, not copy, of the death certificate...and go to the dmv...again your state may be different, i'm in pa. good luck.

Answer 4

Possibly the 'credit life ins' he signed for would pay for the vehicle if he died. On the other question, like stated above, if she has the title (with no lien) then she does not owe anything and they would have to goto court to try and collect. To transfer the title to her name, she will need to take the death certificate to MVD with her. Have her call MVD to see what she needs, states vary on requirements. GOOD LUCK, and SORRY for your loss.

Answer 5

A clear title means that a title that is free of liens or legal questions as to ownership of the property.

Answer 6

If your mother has a title free and clear w/ your father's name on it. and he didn't leave her as the next of kin on it she will probably just have to take his death certificate to the motor vehicle division to file for a new title in her name. she will most likely just need proof of insurance, death certificate and clear title.
depending on your state she could still be required to pay taxes on the vehicle.
I am the beneficiary if my husband was to pass away on our 2006 vehicle but being a ditz he forgot to add me to the title as next of kin (we moved to a new state and had to register it again)
If my husband was to pass away the bank would clear the title to me but i would then have to deal with the department of motor vehicle in our state (if i was to file here) i could end up being responsible for property tax as well as titling the vehicle. which in our state would be alot of money.

easiest way to get the best answer is on the next business day try to call the customer service for your local state vehicle registration. they will give you the 100% answer based on your state's requirements.

Good luck!