What does it mean to release the mortgage on the vehicle green title?
3 Answers
After obtaining an auto loan, the vehicle green title is mortgaged to the lending institution (the entity providing the loan, such as a bank or other financial institution), and the green title will record that the vehicle has been mortgaged to a specific institution. Only after the loan is fully repaid will the lending institution return the green title and note that the mortgage has been released. Below is relevant information about auto loans: 1. Unpaid loan: Before the loan is fully repaid, the ownership of the vehicle belongs to the lending institution, and the owner only has the right to use it. Ownership is only transferred to the owner after the loan is repaid, the mortgage release procedure is completed, and the green title is retrieved. 2. Repaid loan: Most banks require borrowers to sign a mortgage contract when applying for credit card installment car purchases, mortgaging the purchased vehicle to the bank. This measure is taken by banks to control risks in case the borrower defaults on payments. Once the borrower fully repays the loan, they can proceed to cancel the vehicle mortgage registration. 3. Mortgage release procedure: When applying for the release of the vehicle mortgage, it is essential to bring all necessary documents. The process of releasing the auto loan mortgage takes 1-2 weeks. Only after completing the entire procedure does the vehicle truly belong to the owner. If there are any uncertainties during the process, the bank's customer service can be consulted for assistance.
I remember when I bought my first car last year and signed a car loan agreement, the bank registered the mortgage information on the green book (vehicle title). Releasing the mortgage means the loan has been fully repaid, and the bank confirms that the car is no longer collateral for the loan, removing the mortgage mark from the green book. Last month, I finally finished paying all the monthly installments, and the bank sent me a mortgage release notice. Then, I took it along with my ID card to the local DMV to complete the procedure. After verification, the staff stamped the green book to show the release status, and from then on, the car fully belonged to me. The process was actually quite simple, but at first, I didn’t understand why it was necessary. Later, I learned that without releasing the mortgage, potential buyers would see the mortgage mark when selling the car, worrying about risks and hesitating to buy, or even affecting the transfer process. Now, holding the clean green book, I feel much more at ease, no longer needing to worry about monthly payments. I’d like to remind newcomers who take out loans to make sure they complete this step to avoid future disputes.
I've handled the release of mortgage several times. Simply put, it's a legal alteration on the vehicle's green book (certificate of title). The green book serves as the car's ownership certificate, where the bank leaves a record indicating the vehicle is pledged as loan collateral when mortgaged. Once you've repaid the loan on schedule, the bank must issue a release certificate. You then take it to the DMV to update the green book and remove that notation. I've seen many cases where failure to complete this release process raises red flags for potential buyers during vehicle sales transactions, potentially derailing deals. Worse yet, if the bank forgets to release the mortgage while you assume you're debt-free, title transfer could get stuck. Required documents typically include the loan payoff statement, ID card, and the original green book - the process usually wraps up within the same day. Always confirm with the bank beforehand to ensure they've processed everything, avoiding wasted trips to the DMV. After release, your green book shows a clean title with no encumbrances, granting full freedom to dispose of the vehicle without restrictions.
