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What happens to a car loan if the borrower dies before paying it back?

My aunt is very ill and she may not make it. If she passes away, what will happen to her car loan? She still has about $5,500 left to pay off.

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Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“I’m sorry to hear your aunt is ill. An
auto loan
is a secured loan, which means that the lender will repossess the car if the payments are not made. If the borrower passes away before paying off the loan and the borrower’s heirs wish to keep the car, those heirs can take over the payments by default. “
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