What does the seizure status of a mortgaged vehicle mean?
1 Answers
A mortgaged vehicle in seizure status refers to a vehicle that has been mortgaged to a lending institution and is currently under seizure by judicial authorities in accordance with legal provisions. Mortgaged Vehicle: Mortgaged vehicles are generally transferred to lending institutions through formal procedures, with complete documentation and various agreements signed. The price of a mortgaged vehicle is much lower than the market price. Purchasing a mortgaged vehicle allows for normal driving, vehicle inspection, and insurance purchase, with the only drawback being the inability to transfer ownership. Regulations: Article 406 of the Civil Code stipulates that during the mortgage period, the mortgagor may transfer the mortgaged property. If the parties have agreed otherwise, such agreement shall prevail. The transfer of the mortgaged property does not affect the mortgage rights. The mortgagor shall promptly notify the mortgagee when transferring the mortgaged property. If the mortgagee can prove that the transfer of the mortgaged property may harm the mortgage rights, they may request the mortgagor to use the proceeds from the transfer to repay the debt in advance or to place the proceeds in escrow. Any amount from the transfer proceeds that exceeds the debt shall belong to the mortgagor, while any shortfall shall be covered by the debtor.
