What does 'fully paid but not released from mortgage' mean?
2 Answers
'Fully paid but not released from mortgage' means the vehicle is still in a mortgaged status. Introduction to 'fully paid but not released from mortgage': Dealers mortgage their inventory vehicles to banks for financing. If the car is purchased with full payment, the buyer can pay the money and then go to the bank to release the mortgage. In fact, this is handled by the dealer, and sometimes the car owner may be asked to accompany them. If the car is purchased with a loan, the mortgage will be released after the final payment is made. Introduction to full payment and installment payment for car purchase: When customers purchase a car, they can choose between full payment and installment payment. Full payment means paying the entire car price at once and taking delivery of the car. Installment payment means paying a portion as a down payment and repaying the remaining loan in monthly installments. Full payment does not involve vehicle mortgage issues. With installment payment, the vehicle registration certificate is mortgaged at the vehicle management office, and partial ownership is registered under the name of the bank or financial institution that provided the loan.
Full payment without mortgage release refers to the situation where you have fully paid off your car loan after purchasing the vehicle, but the bank or lending institution has not yet lifted the mortgage on the car, leaving the ownership with an unresolved issue. This status commonly occurs due to delayed paperwork or inefficiency on the bank's part, such as when the loan company drags its feet in processing documents and fails to promptly cancel the mortgage record at the vehicle management office. As a result, although you've ostensibly paid off the loan, the car's ownership isn't entirely clear, which can cause complications when selling, transferring ownership, or dealing with traffic accidents. Potential buyers may become concerned about title risks upon checking the ownership certificate. I've personally encountered this situation—when I urgently needed to sell my old car, I discovered the transfer couldn't proceed because the bank had forgotten to release the mortgage record. It took some time and effort to push for resolution. Remember to always inquire about the mortgage status when buying or selling a car to avoid unnecessary hassle.
