What does car mortgage release mean?
2 Answers
Mortgage release for vehicles refers to the deregistration of the mortgage for motor vehicles purchased with a mortgage loan, which means the removal of the mortgage at the vehicle management office for vehicles whose mortgage rights have been extinguished. Below are two methods for releasing a vehicle mortgage: 1. Owner-initiated mortgage release: The owner needs to provide their identity proof and that of the mortgagee (a copy of the bank's organization code certificate), a bank-issued power of attorney with an official seal, and the registration certificate (with mortgage release information annotated), then fill out forms at the vehicle management office. 2. Third-party authorized mortgage release: The third party needs to provide an authorization letter, identity proofs and copies of both the vehicle owner and the mortgagee; the "Motor Vehicle Mortgage Registration/Pledge Filing Application Form"; in cases where the mortgage is released through court mediation, ruling, or judgment, the vehicle owner or mortgagee must also submit the effective "Mediation Agreement," "Ruling," or "Judgment" issued by the court, along with the corresponding "Notice of Assistance in Execution" and the motor vehicle registration certificate.
Last year, I finally paid off the loan for my sedan and went to the vehicle management office to complete the release of the mortgage, which means removing the vehicle's mortgage registration. When buying a car with a loan, the bank uses the vehicle as collateral. After paying it off, you must apply to remove this registration to fully own the vehicle rights. I brought the loan settlement certificate, ID card, and vehicle registration certificate, queued for half a day, and the process went smoothly. Once completed, the vehicle can be freely bought or sold without restrictions, and I can now drive it worry-free for trips and relaxation. If the mortgage release isn't processed in time, it can cause issues during transfer or transactions. As a car owner, I recommend prioritizing this procedure after paying off the loan to avoid future troubles. Regular car maintenance can also relieve stress, but the mortgage release process is a crucial financial step—don’t overlook it.
