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Car Owner Dies, what happens to Oustanding Loan?


Busybody
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Curious, and assuming no Guarantor.

 

Will car be repo?

 

Or will bank clawback from dead owner's assets?

 

Thanks in advance

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The bank will only know the owner is dead when the installment is not being paid on time.

I guess if the installment is being paid monthly, the bank is none the wiser.

 

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Curious, and assuming no Guarantor.

 

Will car be repo?

 

Or will bank clawback from dead owner's assets?

 

Thanks in advance

 

Take from the deceased estate. If not enough, then suck thumb and write off as bad debt.

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Not sure, when one of my colleague deceased, his bank account was automatically got freezed until the govt approves his wife as the legal nominee. He did not left any Will.

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Neutral Newbie

Bank will claw back outstanding from the deceased estate ...

 

Take from the deceased estate.

 

The above will only be possible if the living beneficiary/s were to file in Court to apply for a Grant of Letters of Administration.

 

On the other hand, its unlikely that the Bank or the Car dealer will an auto loan without any Guarantor :D

 

cheers

 

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Not sure, when one of my colleague deceased, his bank account was automatically got freezed until the govt approves his wife as the legal nominee. He did not left any Will.

 

sounds inhumane, but when someone pass away and his acct PIN got give others, quickly take out the $$$ first.

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On the other hand, its unlikely that the Bank or the Car dealer will an auto loan without any Guarantor :D

 

cheers

 

dun make sense. how many of us here take loan got put guarantor one? if your income is sufficient, there is no need for guarantor.

Edited by Shanhz
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actually, when a person passes away, do not tell any finance company(be it bank or whatever). Just clear their loans asap..

 

if not they will freeze the deceased's assets

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Neutral Newbie

Not sure, when one of my colleague deceased, his bank account was automatically got freezed until the govt approves his wife as the legal nominee. He did not left any Will.

 

Banks normally will not freeze acct unless got wind that acct holder is deceased.

 

Where spouse shares PIN no of deceased, can still withdraw thru ATM continously. :D :D

 

cheers

 

 

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Not sure, when one of my colleague deceased, his bank account was automatically got freezed until the govt approves his wife as the legal nominee. He did not left any Will.

Actually it's not true gar will freeze the deceased account. When my wife passed away I still kept all account for few years n use it for the children school fee. As for the outstanding hospital bill with SGH, SGH came after me for payment. They don't push you for full payment, took me 2 years to clear 150k. However they did sent debts collector on the 2nd years to ask you nicely to settle everything ASAP.

As for CPF without any nominees, they were write to spouse n parent for collection, 50:50.

 

 

 

 

 

 

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The above will only be possible if the living beneficiary/s were to file in Court to apply for a Grant of Letters of Administration.

 

On the other hand, its unlikely that the Bank or the Car dealer will an auto loan without any Guarantor :D

 

cheers

 

My car loan from DBS no guarantor leh....

 

So has the other car loans...all got no guarantor one.

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Neutral Newbie

My car loan from DBS no guarantor leh....

 

So has the other car loans...all got no guarantor one.

 

Then I should say you're "unlucky" cause in the event of a repossession of the car due to default in payment, you'll be the 1st person they come after since they can't find a guarantor to chase after :D :D

cheers

 

 

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Then I should say you're "unlucky" cause in the event of a repossession of the car due to default in payment, you'll be the 1st person they come after since they can't find a guarantor to chase after :D :D

cheers

 

Sure or not....got guarantor they go after guarantor first ??

 

Even Ah Long also go after the primary borrower first...then go after guarantor.

 

Which financial institution go after the guarantor first one ? Please share....

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Neutral Newbie

Sure or not....got guarantor they go after guarantor first ??

Even Ah Long also go after the primary borrower first...then go after guarantor.

Which financial institution go after the guarantor first one ? Please share....

 

My statements are based on incidents collated. [;)]

 

I'm also puzzled why go after the guarantor straight away.

Then it struck me, if the borrower/s already have difficulty in servicing the loans, the bank or their lawyers will realised that the next best person to go after will be the guarantor cause he will be financially sound. :D :D After all they just want their money right ??

 

I think the Ah Longs has also adopted the same lines ; go after the neighbours. :D

Hope that answers.

Edited by Alhisham
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My car loan from DBS no guarantor leh....

 

So has the other car loans...all got no guarantor one.

 

since when car loan need guarantor one?

 

your car is the guarantor

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Got but not sure whether based on income or loan quantum or monthly installments, but i think income level. My first two car loans needed guarantor but i was earning less than 5k per month at the time. All DBS car loans. Or maybe now they see my credit history with them very good, not a single installment late or missed so no need guarantor.

 

Come to think of it some of my previous motorbike loans also needed guarantor, now don't need also.

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