Who owns your car?

[Jim Dupree]

His point and concern was to save the estate
unnecessary expense related to the car. 
If the car were worth $10000 and the estate owes the
bank $14000 the estates indeed stands to lose $4000
even if they could sell the car for the $10000. If the
bank auctions that car off they are likely get about
half the value, maybe $6000, and they will incur costs
(actual paid out the auction yard and there own
internal paperwork costs) maybe $500. They will then
credit the estate the $5500 proceeds. Probably  this
is an optimistic $$ since the bank has no incentive to
recover the whole debt from the sale and typically
charge high internal rates for their part of the sales
process. The estate then has to make up the remaining
$8500. If the estate sells the car and can get $8500
for it then they stand to lose only $5500. If a
private party sells the car then they may be able to
get actual value out of the vehicle depending of the
individual. The more valuable that car more potential
loss there is.

It is kind of like trading in your car rather than
selling it your self, easier but costly.
Cheers
Jim

--- Richard J Lebens <rick-l at rocketmail.com> wrote:

> I don't see what is complicated.  If you want to
> sell the car the
> estate will have to pay off the loan.  The departed
> individual borrowed
> X dollars and agreed to pay it back.  The cars
> current value has
> nothing to do with the amount they still owe the
> bank.
> 
> Say the car is worth $1000 and the loan with the car
> as collateral is
> $14,000.  If they repo'd the car and sold it for
> $500 the estate would
> still be responsible for $13500.
> 
> A representative of the estate can go get the car
> and drive it around
> but he can not sell it without clear title which
> will be resolved when
> the lien holder is paid.
> 
> 
> 
> > 
> > Mike Arman <armanmik at earthlink.net> ---  wrote:
> > 
> > 
> > Had an interesting conversation with a large, well
> known nation-wide 
> > megabank today.
> > 
> > 
> > Seems there's this car they financed - and that's
> the end of the
> > simple part.
> > 
> > 
> > The payment is current (nothing due), but the
> owner is deceased (two 
> > weeks), therefore the car is part of the estate.
> > 
> > 
> > The person who was driving the car (acquaintance
> of the owner) took 
> > it to the bank and dropped it off, taking the
> license plates with 
> > them. They were specifically instructed (by
> registered letter) to 
> > take the car to the attorney's office, but took it
> to the bank 
> > instead. (Separate cause for action, not pertinent
> to the rest of
> > this.)
> > 
> > 
> > I'm trying to recover the car so the estate can
> sell it - it is 
> > upside down in the loan (loan is about $4K more
> than value), but if 
> > the bank sells it at auction, they'll get nothing
> for it, and the hit
> > 
> > against the estate may be $10 to $12K instead of
> $4K. Obviously worth
> > 
> > someone's time to do this . . .
> > 
> > 
> > The bank's position is that THEY own the car, not
> the estate, and if 
> > anyone wants it, the loan has to be paid off in
> full.
> > 
> > My position is that the estate owns the car (is in
> title), and while 
> > yes, there is a valid lien against it held by the
> bank (which we are 
> > not contesting), as long as the payments are kept
> current, they 
> > should release the car since they do not own it,
> the estate does.
> > 
> > Their response was that in *all* car loans, it is
> the LENDER who owns
> > 
> > the vehicle, and title does not pass until the
> loan is paid off. I 
> > disagree. While the lender does have a valid claim
> against the car, 
> > and the car is the collateral for the loan, the
> OWNER is the person 
> > whose name is on the title.
> > 
> > (They would be slightly more correct in a
> buy-here-pay-here loan 
> > situation, but this is a standard, good credit car
> loan.)
> > 
> > You might want to check YOUR car loan documents
> (their suggestion!) 
> > to see who exactly IS the owner of "your" car -
> hopefully the bank is
> > 
> > wrong, and we will be spared an extremely
> unpleasant surprise. (Hey, 
> > Mr. Banker, if you own it, YOU fix it!)
> > 
> > None of us want this car, but I'm trying to keep
> the heirs from 
> > getting screwed over by this megabank.
> > 
> > 
> > Best Regards,
> > 
> > Mike Arman
> > V8Q, it isn't a car, its an ADVENTURE!
> > 
> > 
> > 
> > 
> > 
> > -- 
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> > 9/30/2005
> > 
> > 
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