My father-in-law passed leaving the loan(debt) of a car. The car is solely in his name. She does not need or want the car, Is she responsible for the car? Plus the car is too expensive for her limited income. What should we do with the car?
We have inquired about turning the car as a trade in but the value is below the owed amt so she would be forced to cover the difference. Ford offered to auction the car and told my M-I-L that she would be responsible for the difference between the amount owed and the auction price. Our only other option would for the bank to repo the car upon non-payment - 23 payments remaining.
There is no estate and the is little to no equity in their house and the house is on the market to be sold. They had little savings, 2 pensions and now she will have his social security.
2007-10-20 03:37:31 · 14 answers · asked by millz 1 in Business & Finance ➔ Credit
None of the previous answers are correct.
Unless she lives in community property State like AZ, CA, ID, LA, NV, NM, TX, WA or WI she is not responsible for this debt his estate is.
The only thing that Ford can do is sue the estate not your mother in law.
2007-10-20 03:50:57 · answer #1 · answered by ? 7 · 2⤊ 0⤋
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2016-09-26 11:23:55 · answer #2 · answered by Walter 3 · 0⤊ 0⤋
Kindly check the car loan agreement or the promissory note that your father-in-law excuted. If you M-I-L co-signed with him (most banks require the spouse's signature), then she's also liable. If she did not, she can dispute the liability, though technically, everything's conjugal, whether it is an asset or a debt. Please check also if there is a mortgage redemption insurance (MRI) when your F-I-L took the loan. If there is, then the MRI should take care of the loan upon you F-I-L's demise. Search through the documents, I'm sure you'll find something.
You could also auction it by posting it to different websites and free ads paper (e.g. Buy and Sell, sulit.com, buysell.ph) so you can get a better deal. Don't trust Ford too much. Did they do the appraisal to determine that the value is lower than the auction price? Get a different opinion. Better yet, go consult a lawyer. Good luck!
2007-10-20 03:55:07 · answer #3 · answered by Atan 2 · 0⤊ 0⤋
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RE :Is my mother in law responsible for a car loan debt after the death of her husband?
My father-in-law passed leaving the loan(debt) of a car. The car is solely in his name. She does not need or want the car, Is she responsible for the car? Plus the car is too expensive for her limited income. What should we do with the car?
We have inquired about turning the car as a trade in but the value is below the owed amt so she would be forced to cover the difference. Ford offered to auction the car and told my M-I-L that she would be responsible for the difference between the amount owed and the auction price. Our only other option would for the bank to repo the car upon non-payment - 23 payments remaining.
There is no estate and the is little to no equity in their house and the house is on the market to be sold. They had little savings, 2 pensions and now she will have his social security.
Follow 13 answers
2016-12-03 13:15:30 · answer #4 · answered by ? 6 · 0⤊ 0⤋
1st. Everyone has an estate. There maybe nothing in it but we all have an estate. Check the loan papers and many finance mangers add death benefit so if the borrower passes the car is paid. 2nd see if you can sell the car on eBay with a reserve. Even if she clears the loan and makes no money off if it. She is responsible for his debt regardless of who's car it is. Also they owned a home together so there is money in the estate.
2007-10-23 02:29:57 · answer #5 · answered by Kat G 6 · 0⤊ 0⤋
The estate is responsible for the debts. Debts should be paid before assets are distributed to heirs. Your MIL is not responsible, provided they are not in a community property state.
In the case of the car, send Ford a letter with a photocopy of the death certificate. Tell them that the estate doesn't have the assets to pay for the car. Ask them to come get the car or tell you where to turn the car in.
Likewise, if he any credit cards in his name only or medical bills, send them a letter with a photocopy of the death certificate, indicating the estate has no assets to pay the debts.
Don't let any of the creditors convince you that your MIL is responsible for debts in his name only.
2007-10-20 06:37:36 · answer #6 · answered by bdancer222 7 · 0⤊ 0⤋
until spifmans post this was the worst thread of advice i ever saw.
if she was not on the loan she is not responsible for the debt. she does have to turn in the car. the finance co can sell the car and try to add the deficiency balance to the estate (if there a estate).
2007-10-20 07:18:34 · answer #7 · answered by wareagle30 2 · 0⤊ 0⤋
Go and talk to the Bank and discuss the matter with them. Most Banks will work with you especially under the circumstances you have stated
2007-10-20 08:10:55 · answer #8 · answered by Stephen L 1 · 0⤊ 0⤋
she is responsible. Here's an option. Put an add in the paper to sell the car using the statement, "Assume payments." The buyer will buy the car for what the balance owed is, and will assume the debt and monthly payments upon puchase of the car.
2007-10-20 03:45:51 · answer #9 · answered by staggerlee337 5 · 0⤊ 5⤋
As his wife she is responsible. Sell the car. If the loan is more than what she will get for the car she will have to pay that also. Just the way it is
2007-10-20 03:42:51 · answer #10 · answered by mommacat 4 · 0⤊ 3⤋