Owner died Natural death leaving unfinished car loan

**knight0901** · January 9th, 2011 02:02 PM

Hi guys, i would like to ask lang this question since may friends family is at lost, they dont know what to do with their car loan, hindi pa kasi tapos bayaran ang loan from the bank, his father died of natural death, they still have 3 years to pay. The bank sent them a letter, about the renewal of their car insurance. Should they pay the renewal and continue the monthly payments or should they inform the bank about the situation. They are capable of paying the monthly mortgage but afraid that the bank might pull the car, and if the bank asked for a co owner requirements, they may not be able to give the necessary documents. Please share your insights, expertise and experiences with this situation.

**av8or5** · January 9th, 2011 02:09 PM

Originally Posted by knight0901

Hi guys, i would like to ask lang this question since may friends family is at lost, they dont know what to do with their car loan, hindi pa kasi tapos bayaran ang loan from the bank, his father died of natural death, they still have 3 years to pay. The bank sent them a letter, about the renewal of their car insurance. Should they pay the renewal and continue the monthly payments or should they inform the bank about the situation. They are capable of paying the monthly mortgage but afraid that the bank might pull the car, and if the bank asked for a co owner requirements, they may not be able to give the necessary documents. Please share your insights, expertise and experiences with this situation.

I suggest they inform the bank. Who knows, maybe may loan protection guarantee insurance. In case the person dies, loan will be fully paid, just like card protection insurance.

If capable naman to continue the payments, maybe the surviving spouse or one of the kid can continue the loan. Mahirap din na after fully paid yung car and nag request na yung original C.R., eh hindi ma release kasi deads na yung nag loan. Mas mahaba pa explaination.

**chrismarte** · January 9th, 2011 02:48 PM

Mas maganda na advise na lang yung bank na patay na yung original borrower, dito siguro papasok yung co-borrower.

**vinj** · January 9th, 2011 02:52 PM

As the vehicle is an asset of the deceased, this goes to his estate or heirs.

Inform the Bank and discuss with the Account Officer the options. They'll be lucky if there is mortgage redemption insurance on the car since the death of the principal will mean, the car is automatically paid up.

When my dad died, he had one car under loan and unfortunately it had no MRI, We just decided to continue payment and my siblings and i will just work on the transfer upon full payment of the loan.

**knight0901** · January 10th, 2011 11:54 PM

Thanks guys for your suggestions. They went to the bank this morning to inform them and they were asked to wait for a call from their consumer lending to discuss the options. We'll update you guys when the bank calls them.

**mark_t** · January 21st, 2011 10:48 AM

Originally Posted by knight0901

Hi guys, i would like to ask lang this question since may friends family is at lost, they dont know what to do with their car loan, hindi pa kasi tapos bayaran ang loan from the bank, his father died of natural death, they still have 3 years to pay. The bank sent them a letter, about the renewal of their car insurance. Should they pay the renewal and continue the monthly payments or should they inform the bank about the situation. They are capable of paying the monthly mortgage but afraid that the bank might pull the car, and if the bank asked for a co owner requirements, they may not be able to give the necessary documents. Please share your insights, expertise and experiences with this situation.

The car becomes part of the estate, so technically next in line (wife) decides.

Usually mayroon naman MRI yan na hindi declared sa borrower.
The policy owner is the Bank.

Of course you renew your car insurance, make sure your liability cover is atleast 500,000.
And your participation 2000 to 3000 only.

**JJGF** · January 21st, 2011 11:26 AM

^ sir ano yung MRI?

ganito din nangyari samin nung nawala father ko. may remaining 3yrs pa sa loan.

advise ng kakilala namin sa bank ituloy na lang ang monthly para wala nang mga ek ek. at ako naman ang co-maker..