What does car release of mortgage mean?
2 Answers
Release of mortgage for a financed vehicle refers to the deregistration process of removing the mortgage status from a vehicle purchased with a loan at the vehicle management office, meaning the elimination of the mortgage right. Below are two methods for releasing a vehicle mortgage: 1. Owner-initiated release: The owner needs to provide their identity proof along with the mortgagee's (usually a bank's organizational code certificate copy), the bank's power of attorney with official seal, and the vehicle registration certificate (with mortgage release information endorsed), then fill out forms at the vehicle management office. 2. Third-party authorized release: The authorized third party must provide a power of attorney, identity proofs and copies of both the vehicle owner and mortgagee; 'Motor Vehicle Mortgage Registration/Pledge Record Application Form'; For cases involving court-mediated, adjudicated, or ruled mortgage releases, the vehicle owner or mortgagee must additionally submit the effective 'Mediation Agreement', 'Ruling', or 'Judgment' issued by the court, along with the corresponding 'Notice of Assistance in Execution' and the vehicle registration certificate.
Car lien release, simply put, means 'untying' your vehicle. For instance, when you finance a car purchase, the vehicle is actually pledged to the bank or financial institution, and the lien status is recorded on the green slip (vehicle registration certificate). Once the loan is fully repaid, you must promptly visit the DMV to complete the lien release procedure and remove the mortgage record. I've seen too many people assume everything's fine after repaying, only to discover during resale that their green slip is still 'locked,' causing panic. Bring your ID, loan clearance proof, and green slip to the DMV – it takes just over ten minutes if done in person. For proxy services, a power of attorney is required. Release the lien early, and the car truly becomes yours!
