What procedures are required to release a car from mortgage?
2 Answers
The borrower needs to provide documents such as ID card, vehicle license, and bank repayment details to release the car from mortgage. Points to note during the mortgage period: During the mortgage period, the car is subject to a property claim right, meaning that if the debtor fails to repay the due debt, the creditor's mortgage right will be realized, and the car will be used as collateral to settle the due debt. Therefore, buying or selling a car that is under mortgage carries significant risks. Legal basis related to mortgaged cars: According to Article 394 of the Civil Code, which came into effect on January 1, 2021: To secure the performance of a debt, the debtor or a third party may mortgage the property to the creditor without transferring the possession of the property. If the debtor fails to perform the due debt or the circumstances for realizing the mortgage right as agreed by the parties occur, the creditor shall have the priority to be compensated with the property.
I've handled the release of car mortgages several times, and the procedures aren't too troublesome. First, you need to confirm the loan is fully repaid and obtain a loan clearance certificate from the bank or financial institution—it's like a confirmation document. Then request a mortgage release notice or proof document from them. With these in hand, bring your original ID card, the vehicle registration certificate (that green booklet), and a copy of the vehicle license, then drive to the local vehicle management office to process it. There, you'll need to fill out an application form. Once reviewed and approved, they'll process the release on the spot and stamp the registration certificate to indicate the mortgage is lifted. Note that an appointment might be required—I always booked online or by phone in advance to avoid queues. The whole process can be completed in a day or two if everything goes smoothly, with fees around a few dozen yuan. If the lending institution delays, follow up more frequently to speed up regaining your freedom. Finally, double-check that the registration certificate is fully updated to ensure nothing is missed.
