STEP BY STEP GUIDE IN CANCELLING A CHATTEL MORTGAGE:
- After the loan has been fully paid, claim the collateral documents from the bank. The documents include the original OR and CR of your car, release of mortgage, and the promissory note with chattel mortgage. This process will take at least 7 working days depending on the bank that you are having a transaction with.
- The bank will send a notification once the documents are ready but if there is no notification received, better call the bank to follow up. Pick up the documents from the bank and pay the processing fee. Check all the documents and make sure they are complete and the promissory note with chattel mortgage has been marked “fully paid”.
- Bring the documents to the Registry of Deeds and apply for cancellation of chattel mortgage. Only the release of mortgage and the promissory note are needed to be submitted. This process will take at least another 7 working days.
- Pick up the documents from the Registry of Deeds on the day specified for release but before proceeding there, drop a call first to ensure that the documents are ready. Check the documents and make sure that it has been stamped, acknowledged and signed by the deputy of the Registry of Deeds.
IMPORTANT REMINDERS FOR CHATTEL MORTGAGE CANCELLATION:
- Bring 2 photocopies of 2 of your valid IDs (e.g. Driver’s License, Passport, Voter’s ID, UMID, etc.) One will be needed in the bank and the other one in the Registry of Deeds.
- The branch of the Registry of Deeds that you need to go to should be where your car was registered.
- Bring enough money for the processing.
- Make sure that all important documents are photocopied to ensure a fast and smooth transaction.
- Come early to avoid long lines.
FEES FOR CHATTEL MORTGAGE CANCELLATION:
- Bank Processing Fee – Php 500.00
- Chattel Mortgage Processing Fee – Php 980.00