I bought a car about 4 years ago. My mom was the primary on the loan, and I was the secondary. We were living in Pennsylvania at the time. Sadly, my mom passed away a couple of years ago, and now I’m trying to update the car’s registration.
The problem is, the bank won’t release the title to the notary. They’re saying I need to either pay off the loan or get a new one, even though the loan is technically mine now that my mom has passed. I don’t have $8,000 just sitting around to pay it off. Without updated registration, I could get stopped, and there’s a chance the car could be impounded. If that happens, I have no idea how I’d get it back.
To make things worse, someone hit my car with a U-Haul, and their insurance company won’t pay for the damage until I give them the updated registration. I’m stuck because the bank is refusing to provide the title to the notary so I can get this sorted. Any advice would be appreciated!
The bank already told you what to do—refinance the loan in your name alone. Were you listed on the title, or was the car left to you in your mom’s will?
Vere said:
The bank already told you what to do—refinance the loan in your name alone. Were you listed on the title, or was the car left to you in your mom’s will?
That’s exactly it! Refinancing is the easiest solution here.
Vere said:
The bank already told you what to do—refinance the loan in your name alone. Were you listed on the title, or was the car left to you in your mom’s will?
Why should I have to refinance when I already have a loan with them? This doesn’t make sense to me.
@Marlow
If you refinance, the old loan is closed. You won’t have two loans—just one under your name. Right now, it’s not technically your loan, which is why you can’t register the car in your name yet.
Marlow said: @Ansel
Actually, it is my loan, and my mom was the co-signer. This whole situation doesn’t make sense.
The bank approved the loan with a co-signer because it reduced their risk. Now that your mom isn’t there to co-sign, they’re trying to reevaluate the terms.
Marlow said: @Ansel
Actually, it is my loan, and my mom was the co-signer. This whole situation doesn’t make sense.
Why do you need to re-register the car? If you’re the primary borrower and your mom was just the co-signer, the car should already be in your name. The insurance company can usually find registered owners through the VIN.
If it’s just about renewing the registration and the DMV is making it hard, try calling them or making an in-person appointment. But if this is about the bank enforcing loan terms, you’re technically in what’s called ‘default’ because your co-signer is no longer there.
In short, you might need to refinance, even if it’s frustrating, to clear this up quickly and move forward.
Marlow said: @Ansel
Actually, it is my loan, and my mom was the co-signer. This whole situation doesn’t make sense.
It sounds like you don’t fully understand what’s going on here. Talk to the bank directly and have them explain everything to you. We’re trying to help, but this seems to need more clarification on their end.
Nobody’s trying to screw you—the bank is just acting like banks do. I’m not a lawyer, but you might need to show the bank that keeping your mom on the loan doesn’t help them. If the estate doesn’t have assets for them to go after, they might agree to remove her name. Just be prepared to prove your financial situation. If you can’t qualify for the loan on your own, they probably won’t refinance, and you’ll have to figure out another plan.
I work with car titles, and in Pennsylvania, they won’t release a title if there’s still a lien on the car. That’s the rule in most states. You’ll probably have to refinance the loan in your name. Start by contacting the lender and explaining your situation—most likely, they’ll ask for a copy of your mom’s death certificate.
If the registration is the issue, I’m not sure why PennDOT would need the title to renew it. Usually, as long as the loan is active, you don’t need the physical title to register the car.
Honestly, if I were in your shoes, I’d stop paying on the loan and let them deal with it. If you don’t have any major assets, they might negotiate with you to avoid taking a loss. Worst case, let it go and buy a cheaper car with cash.
@Lex
I’m not on the edge of bankruptcy or anything. My credit isn’t great because I had to fight for disability benefits after serving in the army, but I’m managing.
Marlow said: @Lex
I’m not on the edge of bankruptcy or anything. My credit isn’t great because I had to fight for disability benefits after serving in the army, but I’m managing.
But you’re at risk of falling behind or getting into legal trouble. That’s why you need to push back and make them reconsider their stance.
@Lex
I can pay the loan, but I don’t understand how I’m supposed to keep paying for a car that I can’t even register. It just feels like a ridiculous situation.
Marlow said: @Lex
I can pay the loan, but I don’t understand how I’m supposed to keep paying for a car that I can’t even register. It just feels like a ridiculous situation.
Exactly, so stop letting them hold all the power here. If the insurance won’t fix it, why keep paying? Sometimes you have to play hardball to get them to take you seriously.