Ok, I am not going to rant on how my day was so miserable. Instead, I am going to talk about my chattel mortgage. But let’s get the definitions before we get going. Mortgages basically means using property as security for the performance of an obligation, usually the payment of a debt. Chattel mortgage is somewhat more precise type of mortgage which is defined wherein the purchaser borrows funds for the purchase of movable personal property (the chattel) from the lender. The lender then secures the loan with a mortgage over the chattel. Legal ownership of the chattel is transferred to purchaser at the time of purchase, and the mortgage is removed once the loan has been repaid. Get it? Got it? Good.
Now, we are talking about chattel mortage because apparently, there was a mistake with my car loan. I got my ride under a chattel mortgage contract with a local bank. However, my car was suppossed to be under a 36-month term but instead, they filed it under 48-month term, which basically means I have to wait a year longer to be able to really “own” my car. I have no problems with that, but we all know that car value goes down really fast and if I were to sell my car, I should to do it early if I want to get higher resale value. I have to talk to my account executive about this since we are talking pretty huge sum of money here. I do wish that the bank can accomodate me since clearly there was a miscommunication somewhere between me, my car sales executive and the bank.
Mortgages are great help in acquiring property like houses and cars. But like any other loans, one should be careful and study their finances thoroughly before signing any contract.
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