Chattel Mortgage Cancellation

We are already halfway through the year, and time has passed quickly. I almost forgot to share what we achieved recently. Our car loan that took five years to pay is finally settled, and we are finished paying off the debt. We were both skeptical when we acquired it. Do we really need it for our school service? Then the pandemic happened in the very first quarter of paying. For the last 2 years we were already burdened with the payment scheme through bank financing. Surely God does provide for us to finish what we started.

In the last month of our loan amortization schedule, I headed through the bank to pay it in full. We used to issue checks for the last 3 years, but then I was given the option to pay via bank transfer. However, for the last month, the bank advised settling it over the counter to avoid any further balances. I also received a little amount of rebate from paying earlier than the schedule every month. Upon settling the final amount, I was advised to wait for the release of the documents for me to be able to process the chattel mortgage cancellation. There is a corresponding fee for the processing since I didn't process it at the branch where the loan was processed at first.

After weeks of waiting, the bank sent a notice through SMS that the documents are now ready to be picked up at the branch I requested. You need to get the documents as scheduled, or you will have to pay a hefty sum if you prolong it in their vault. I am very thankful to PSBank for being accommodating and answering my questions. If I have to get another bank account, I'd choose PSBank because their customer service is exemplary.

After handing me the documents, I headed to the nearest Registry of Deeds to submit the required documents to cancel the chattel mortgage. There are two offices of the Registry of Deeds in our city, and I go to the city branch instead of the province since I am residing in the city. Processing takes 7 working days, so I was advised to go back on the said date to receive the documents ready for LTO encumbrance processing. There is also a corresponding fee upon release of the document.

After the processed documents, since our car was scheduled for renewal this October, I will just apply for it at the same time. A new CR will then be given after inspecting the car and removing the annotated "encumbrance."

Summary of Chattel Mortgage Cancellation
1. Obtain the Release of Chattel Mortgage through your bank financing branch.
2. Submit the Release of Chattel Mortgage documents to the Registry of Deeds for cancellation and notarization.
3. Submit the notarized documents and apply at the LTO office for the removal of encumbrance in your CR.