Hello and thank you for allowing me the opportunity to assist you.
It's unusual that the bank would cause these problems since the loan has been kept current. However, my guess is that the original loan documents state that death is considered a default, which allows the bank to repossess the vehicle. Coincidentally, I worked on a somewhat similar case a few months ago. I represented the lender, and we negotiated a settlement with the widow. We were going to let her continue to pay the loan. My suggestion is that the executor of your later brother-in-law's estate contacts the bank to see if something can be worked out. The executor has the legal authority to discuss these matters. The executor may need to supply a death certificate and something indicating that he/she has been appointed executor.
Hopefully, the bank will be amenable to working out a settlement. If not, then my only suggestion is to get a new loan. However, I'm confused by this remark: "We got a loan thru the credit union to pay it off but the bank will not release the lien." If you had a loan, and the bank is demanding $8k, then what is the problem? The executor should be able to simply give the bank the money and get the title
in return. If the bank refuses, then the executor would have reason to sue the bank.
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