What are the consequences of not releasing a vehicle from mortgage?
1 Answers
The consequences of not releasing a vehicle from mortgage are as follows: Cannot be traded: A vehicle cannot be bought or sold, nor can the relevant transfer procedures be completed without releasing the mortgage. Even transferring the vehicle to a family member's name cannot be accomplished. Ownership belongs to the financial company: If a user has a loan with a financial company and the vehicle is not released from mortgage in time, the ownership of the vehicle remains with the financial company, which may lead to the vehicle being mortgaged again. Beneficiary is the lending institution: For a vehicle not released from mortgage, the beneficiary of the car insurance remains the lending institution, which may affect the claims settlement in the event of a car insurance accident.