Q: What can happen to a co-signer of an auto loan if the primary person dies ?
Primary loan holder for a car dies. Co-signer still alive (90 years old) ,but co-signer name is not on the title of the car. Wife of the deceased is not making the car payments. What can be done to the co-signer if car is repossessed? She is 90 and only owns her car, and does not have income to pay for the loan.
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A:
If you are the co-signer of an auto loan and the primary borrower has passed away, you are still legally responsible for the loan, even though your name is not on the car’s title. The lender will expect you to continue making payments, and if they aren't paid, they can repossess the car. In this case, if the car is repossessed, you could still be responsible for any remaining balance on the loan after the car is sold at auction.
Since you mentioned the wife of the deceased isn’t making payments, it might be a good idea to communicate with her or the lender to explain the situation. They might offer options such as refinancing or selling the vehicle before repossession occurs, which could reduce the financial impact.
If repossession happens and you are unable to pay, the lender could pursue the remaining debt from you, which may affect your credit or result in legal action. You may want to explore ways to negotiate with the lender to avoid financial strain.
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