My Experience of removal of chattel mortgage on vehicles

Unless you are the top 1% of society, we normally by cars using bank loans.   After the final payment is made, you have a feeling of great satisfaction.  The car is mine!!  Don't celebrate too soon, you still need to get the encumbrance removed before it is "really yours" and if you want, before the vehicle can be sold!  Again, I decided to do it myself and experience what it is really like.  As usual, I looked at the internet to list down the key steps and I they are quite accurate, but it doesn't give the time element and some subtle items - like making sure you really check your documents!.  I did three cars at one time so I was also able to compare bank performance.   So, let me share my experience on this process....

Removal of Chattel Mortgage vehicles

After you pay your loan to the bank:

1. Wait for advise from the bank on when you can get the original OR/CR, loan contract, certificate from the bank that loan is paid and that they agree to remove the chattel mortgage. Note that this takes 1 to 3 months depending on the bank. Ensure you have your Loan Number as this will be the control number for inquiries.  The banks who move the fastest are BDO and BPI.  PBCOM required significant follow up and took three months.  Just relaying my experience here and I gave that feedback to PBCOM.  Note that you have to go personally to the releasing offices of the various banks to do get the documents and if you are delegating this, ensure that letters of authorization, copies of ID and the like are with the messenger.  There are no fees to pay.  Letters will be sent to you that the release of documents is ready and they normally have a clause there that they will charge a storage fee if you do not act within 90 days.  Ensure that your mailing address is up to date with the bank.
2. When you have all the documents, proceed to the Register of Deeds where the Chattel Mortgage was recorded. Ensure that you photocopy all documents (only 1 set needed). Get a photocopy of a valid Gov't ID also. At the RD, go to the officer/reception who will take a quick look at documents for completeness. A cover form will be given which you fill up and sign. Go to the clerk (they will point out whom) who will encode and you will get a document with a so-called EPEB number. The Supervisor will review and advise you when to return. Even though your data has been inputted in the system, there is still a need for counterchecks. It takes a week for them to do the reviews. You will only submit photocopies. Keep all originals,
3. After the RD, proceed to the LTO to get a new CR which no longer has an entry under the 'Encumbered' area.

I had my cars registered at the LTO Muntinlupa Extension office.  So off we went (had some drivers bring two other cars)... I googled the location.

LTO Muntinlupa Extension Office - wrong location in google map. The office is beside SM Muntinlupa.  Attention Google...

1. Inspection area- Go to the tent at the left side of the building (face the building front area). LTO Personnel lists down car, gives blank form and an aide does the stencil and then proceeds to fill in blank form. Inspector does a quick check, sign s off and puts a small sheet at upper right with name and plate number and requests you to go to Window 1 Records.  You will not be allowed to input anything on the form! No need to give a tip but again, it is tedious work so it will be appreciated.
2. Records department accepts documents and requests you to wait in front of Window 8 or 9, Evaluator.
3. An encoder processes your application and keys in the data into their database. Afterwards, the papers are forwarded to the Evaluator.
4. The Evaluator checks all info again and forwards documents to cashier. Wait for your name to be called. A small slip is given which you need to present to cashier when your name is called.
5. The fees are prominently displayed. For this process a fee of 367 pesos is charged per car.
6. After payment, you will be directed back to the evaluator area.
7. Clerks will be pulling up your records and including the latest information. As there are other applicants, wait for your turn.
8. When your name is called, you will enter their office and your new CR will be waiting for final sign off. Ensure that you completely review your info. I did three cars at one time and unfortunately, the license number of one car was inputted for another. Luckily, it was only a comment field. This is when I learned that it is the Motor and Chassis numbers which are used as control numbers Not the Plate number! They snowpaked the error and countersigned.
9. You will receive a new CR in your name without Encumbered on upper left and the OR for the payment.
10. The process at the LTO takes a minimum of 2 hours in total as I submitted the documents for the three cars together. About 0.5 hours outside and 1.5 hours inside but this was on a "lean day". Don't go on a Monday or Friday.

Total elapsed time from final payment of the loan to the unencumbered CR: 40 to 100 days. This was for three cars. The longer duration was due to the very long release time of PBCOM.