Who owns your car?

[Huw Powell]

> This is a simple car sale, with money owed, and the owner of the car just 
> happens to be deceased.  So the executor of the estate advertises the car 
> for sale, sells it; and when the executor receives the money, he/she goes 
> down to the bank, (which you have already notified to have the title 
> present at the local bank branch) pays the remainder of the loan with the 
> proceeds of the sale and puts what's left over into the estate general cash 
> fund.  The bank hands the executor the title, who gives it to the 
> buyer.  The executor gives the buyer a bill of sale until you get 
> possession of the title.

As I see it, that is all correct except for the fact that in this case 
the car is worth less than the debt on it.

I suspect that the bank has to absorb the loss - what are they going to 
do, ruin the deceased credit rating?  Holding a note on collateral that 
is worth less than the debt ends up being the lienholders problem if the 
debtor dies (or files bankruptcy).

-- 
Huw Powell

http://www.humanspeakers.com/audi

http://www.humanthoughts.org/