Monday, July 27, 2015

Encumbered removal after fully paid car loan

Sharing my own experienced on what you need to do next after full payment of your car loan thru bank financing.... (Mine was with BPI)

Step 1: Claim your Original LTO Certificate of Registration & Release of Chattel Mortgage

- After 15 days of your last payment call your bank if the documents are ready for pickup and ask the branch where you can claim it.
- Go to the branch for you to claim the ff. docs (Release of Chattel Mortgage /  Promisory Notes / Original LTO Certificate of Registration / Official Receipt)


Step 2: Cancellation of Chattel Mortgage

- Go to Registry of Deeds of your area of residence to register the Cancellation of your Chattel Mortgage.
- Submit the photocopy of your documents (Release of Chattel Mortgage /  Promisory Notes / Original LTO Certificate of Registration / Official Receipt)
- Prepare for a fee, I paid Php 960 when the time I made this post.
- After payment, they will issue you a receipt you will need to submit to LTO to remove Encumbered status of your CR. (Encumbered is a label that means your CR is under financing obligation, that's why it needs to be remove after full payment of your loan)

Step 3: Encumbered Removal of LTO Certificate of Registration (Best time to proceed with this is during the annual renewal of your registration)

- Go to the LTO branch where your car was registered
- Submit the documents (Cancellation of Chattel Mortgage duly stamped by Registry of Deeds / Original LTO Certificate of Registration)
- Pay the fee
- LTO will release you the new Original LTO CR without Encumbered label. (these only took me 1 day to process but not sure with other branch)

You now have an Original LTO Certificate of Registration that proves you own the car without any obligation. Photocopy it and keep the original safe!


Encumbered

 Encumbered Removed



31 comments:

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  2. Do you know how much the fee from LTO would cost for them to remove the encumberred on your CR?

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  3. Hi, may I ask if sa muntinlupa unang nakaregister ang sasakyan ko with encumbered status and isasabay ko na sa renewal ng registration ko, pwede bang hindi sa muntinlupa LTO? I'm from Bulacan pa kasi. Thanks

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  6. boss ilang araw mo na process ang cancellation ng mortgage sa RD? salamat po.

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  7. This comment has been removed by the author.

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  8. Hi. Do I need to bring my car to the RD? Also, would you know if I may have someone else process at RD? Thanks.

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    1. No need to bring your car. Just present the documents that the bank gave you and that's it. I did it last week and it only took me less than an hour. My municipality is Valenzuela.

      Delete
  9. Hi po.. Sa muntinlupa nakaregister yung CR ng car kong nabili ipapacancel na namin ang encumbered pwede bang sa RD Bulacan na lang ipacancel? Thanks.

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    Replies
    1. Since the question was posted last year, I assume this has been answered already. I'll respond for the sake of readers that will find this blog.

      When I received my papers from the bank after paying the balance of my loan, it was indicated at which branches should I go. In my case, I have to go to Registry of Deeds Taguig. It was also indicated that I can have my CR be updated at any LTO office.

      Hope that helps!

      Delete
  10. Hipo, kung sa La Loma QC,naregister ang car doon din ipapatanggal ang encumbered?or pwede kahit saan LTO?thank you

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    ReplyDelete
  12. hello po. pwede na po ba ibyahe ang motor kashit di pa tapos hulugan? 1 year pa po kulang nmin pero i travel sana nmin sa maynila from bacolod. photocopy lang ng or at cr kami meron kasi encumberred pa siya. Please reply. thanks you po.

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  15. How much po ang magagastos kapag ng pa remove ng encumbered? Done na po ako sa registry of deeds nasa next step na ako ung pag papatngal ng encumbered sa cr.thank u

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  16. UnknownMarch 16, 2019 at 10:53 PM
    How much po ang magagastos kapag ng pa remove ng encumbered? Done na po ako sa registry of deeds nasa next step na ako ung pag papatngal ng encumbered sa cr.thank u

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  17. Question po. What will be the consequence if you did have the word encumbered removed after paying the full amount of loan?

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  18. Ok lang po ba kahit wala yung OR from Registry of deeds? Nawala kasi pero may stamp na po ung release of chattel mortgage ng car

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  19. Ilang days po ang pag process sa registry of deeds? At sa lto?

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  20. I will finish paying my car this August, 2019. I'm checking now the photocopy of original CR. No "ENCUMBERED" mark on it. Does it mean that I don't have to go to the process? Or did the LTO forgot this? Thanks.

    ReplyDelete
    Replies
    1. Hello. Good day! My photocopy also has no mark on it. However, when I received the original CR from the bank after fully paying my auto loan, it has an "Encumbered" mark.

      I asked my coworkers for their photocopies, the "Encumbered" mark is also missing. I assume that the photocopies that they are sending really do not have an "Encumbered" mark.

      Delete
  21. This comment has been removed by the author.

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    1. I just want to clarify. Photocopy lang po ba ng CR yung sinasabi niyo? Yung sa akin po kasi, yung photocopy na binigay sa akin ng bank/casa, wala rin encumbered. Pero nung natapos ko yung loan at nakuha ko yung original CR, may nakasulat na encumbered na.

      Delete


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  23. Pag pinaA SA rd Ang original OR at CR ibinabalik ba nila ito?

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  24. magkano bayad sa pag encumbered ?

    ReplyDelete