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Does anyone have experience with the death of a family member & a vehicle that isn’t paid off? At the time of his death, my FIL owed $15,000 on his car loan. The car is said to be worth $20k. My BIL notified the bank (State Farm) of FILs death and has been trying to sell the car. He had an offer of $15k but turned it down because if he took it, “it wouldn’t be doing anyone but the bank a favor.”
The bank sent him paperwork (don’t know what it was) and he said he wasn’t going to do anything with it because he’s not paying off the loan. So I am wondering, when someone dies, does the bank/finance company continue to tack on late fees for every missed payment and eventually repossess the car? The last payment was made on June 2nd. I am just wondering if the late fees will continue to accrue and eventually the car will be repossessed? Or will there be no late fees? The longer it sits, the more that will be owed on it because of the late fees. The bank knows where the car is, since they sent my BIL paperwork.

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This vehicle needs to be turned back to the bank, they will repossess it and they should. Your BIL has a bad attitude, he wanted to make some money and stick it in his pocket.
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worriedinCali Jul 2019
My brother has absolutely nothing to do with this.
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The car needs to be turned back to the bank. This isn't about making money, it is about doing the right thing. Every situation that costs the bank money, actually costs everyone money.

When my sister died my niece called the finance company and told them that they needed to take the car as no one wants it or has the ability to pay for it. They tried to bully her into paying for it, but she stuck to her guns and they ended up taking it back.

I would send a certified letter telling them where the car is and offer a contact for them to get the keys. It is the responsible thing to do.
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worriedinCali Jul 2019
I agree with you and that’s why I asked these questions/ I don’t have any say in this but I am considering calling the bank.....I don’t have enough info to send a letter but I think I have enough that if I call, they can find his account. The car is currently parked on the street at a relatives house. That relative has to be out of the house by the end of this month. I don’t know if the relative will leave the car there (he’s getting divorced and wife is staying in the house). If he moves the car, it will go to my SILs house or her in-laws house. I don’t know the in-laws address....so if it goes there, the bank can’t repo it.

Would it be wrong of me to call the bank and tell them where the car is and that no one is going to pay for it?
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Yes, they will come for the car.
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Yes they will come repossess the car if it’s not paid off. BIL can’t sell car because it does not have a clear title with a lien. If he tries to sell without bank being involved big problem. Best to have it returned jingle mail (keys in mailbox). Hope they are not driving as any insurance is lapsed with death!!
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Yes. It is up to the estate to pay off the loan or make arrangements for payments to be made. A family member with good credit may be able to assume the loan. If The loan is assumed, The person assuming will have to pay the late payments and fees.
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worriedinCali Jul 2019
Thanks Becky. There is no estate, FIL died with $2200 to his name and the money has already been split amongst his 3 kids. None of the kids need a vehicle so they are not going to take over the loan payment of $591 a month.
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