QUESTION
What can we do if I want to pay off my father's car loan and get the title, but the bank wants me to refinance first?
Asked on Jul 16th, 2014 on Estate Planning - California
More details to this question:
My father passed away on May 30, 2014 from a massive heart attack. He had just refinanced his car with a credit union. He left no will nor estate. We got a hold of the credit union because we want to keep his vehicle and we want to pay it off, there is only $11,000 left. The problem is, that the credit union is asking my mother or me to refinance the loan again to be able to get a title. We have been asking to just pay it off and get the title under my mother's name and send an affidavit of collection of personal property under the probate code 13100, but they are still asking us to refinance or they are going to repossess the car.
3 ANSWERS
It does not matter who pays off a loan. All the lender is entitled to is the money. You can pay off the loan, unless it has a clause in the loan agreement forbidding that, and the car would then go into his estate and can be transferred under the Probate Code.
Answered on Jul 23rd, 2014 at 2:39 PM
Edwin K. Niles
You are correct. However, it's unfortunately very common for banks (or CU's) to make up their own rules or to misunderstand the law. When I send out a 13100 declaration I usually send a copy of section 13105 along with it. That gets their attention.
Answered on Jul 22nd, 2014 at 10:06 AM
2 Awards
Get an attorney involved. You are doing it correct and can get title with the small estate affidavit. You should not have to refinance it. At James Law Group we make every effort to respond to you quickly and efficiently. This means we may be responding to you from a mobile device. As you know, responding on these devices can result in typographical errors that my otherwise not occur. In order to provide this extra service, please be aware of this and excuse any errors that may be caused by responding in this forum.
Answered on Jul 21st, 2014 at 9:59 AM