Expert: Creditwrench - 6/28/2010

Question
My mother lives in Kansas.  Her husband just passed away and she has 2008 5th Wheel RV that was in his name alone that she can not pay for.  It is currently financed through GEMB Lending and I have read so much about how horrible they are with customer service.  He has left no estate and a little credit card debt that we have already taken care of (I hope).  I have not yet called GEMB Lending to notify them of his passing.  What is the best way to go about this.  We'd simply like them to "repo" it as she can not pay for it and it can not be sold because more is owed than it's worth.  

She also have a car that she drives daily.  It is in her late husband's name.  She'd like to keep it and simply "take over the payments"  will the company allow her to do that and transfer it into her name?

Answer
She cannot be held responsible for the RV or any other debt that she did not personally guarantee with her signature. She can tell the RV company that her husband passed away and they should come get it because she can't afford the payments and has no desire to keep it. They will probably do everything they can to make her pay but if she does not live in a community property state it would be almost impossible for them to force her to pay. If she lives in a community property state then she could be forced to pay for the RV. The same is true for any other debts her husband had accumulated including the car. If she wants to keep it then that may be another story and could get a bit trickier. I'm not sure I'm qualified to give the best answer for that one. I think I'd start off with asking the state motor vehicle department what to do. In Oklahoma we have what are known as tag agents and they would be an excellent place to start. Other states handle their titles and tags through the county clerk's offices. Maybe she has a friend who could tell her how they handled that kind of situation or a lawyer. I'd hold up on talking to the lender until she has the right information.