Q: I have a car that is registered to my mother who has passed. There's still a loan on it but I want to get rid of it.
What to do
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- California
- (916) 704-3009
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- Answered
A:
Under California law, to handle a situation where you've inherited a vehicle with an outstanding loan, you need to consider a few steps. Firstly, contact the lender to inform them of the situation. It's important to understand the terms of the loan and whether the obligation passes to the estate or directly to you.
If the loan is not automatically assumed by you, the executor of the estate will need to manage this liability. This might involve paying off the loan from the estate or selling the vehicle to cover the debt.
If you are the executor and wish to keep the car, you might have the option to refinance the loan in your name. However, this will depend on your creditworthiness and the lender's policies.
In any case, it's essential to keep making payments on the loan to avoid repossession, until the matter is resolved. Lastly, for the transfer of title, you'll need to visit your local Department of Motor Vehicles (DMV) with the necessary documentation, which usually includes the death certificate, the vehicle title, and transfer forms.
It's advisable to consult with a legal professional to guide you through this process and ensure that all legal and financial obligations are properly addressed.
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