How to Transfer a Car Loan to Another Person From a Deceased Loved One

There are several reasons you might want to pay off the vehicle loan from a deceased person's estate. The car may have sentimental value, or a clean vehicle with low mileage may be preferable to what survivors have been driving. While each state sets its own laws regarding unpaid loans of deceased residents, in most cases, loved ones can negotiate a settlement plan with the lender. This relieves the lender of the responsibility of having to take the car back and trying to sell it elsewhere.

Instructions

1

Find out who holds the loan to the vehicle. Go through bank documents and other important paperwork to locate the loan agreement. If it is not available, the checkbook of the deceased may show evidence of the entity to which the monthly payment checks were being written.

2

Contact the lender and request permission to transfer the loan to your name. The lender may require you to apply for a new loan for the vehicle, although it may simply require you to qualify for the existing loan in an "as is" condition. Request a written document detailing the original loan value, how much is still owned, the interest rate and the pay off amount.

3

Complete all paperwork requested by the lender. This can include new loan processing, refinancing paperwork or a simple loan transfer request. Send all paperwork and supporting documentation to the lender as soon as possible. Keep copies for yourself.

4

Follow up with a phone call to ensure all required paperwork has been submitted. Ask whether anything else is needed, and ask when you can expect a decision. Once the decision is made, request that the loan be put in your name. If the request is turned down, find out whether the lender will accept a cosigner if someone is available.

5

Take the new sales and loan documents to the department of motor vehicles and register the vehicle in your name.