Chattel mortgage: an overview.
Posted By editor
by: Christine Zafra
If you’re eyeing a certain car yet you do not have the funds to purchase it, then maybe it’s about time that you get a loan in the bank. Chattel mortgage is beneficial to those who want to purchase certain “movable” goods, such as cars, air conditioners, mobile phone, laptops etc., but do not have the money to do so.
If you have already acquired the money from the bank or any other lender and you have already purchased the good, depending on your arrangement (sometimes, payable up to 6, 12, 18, 24 etc. months), the good is still under the name of the bank or lender (i.e. mortgaged with: ______). After you have finished paying the installment, then that is the only time that the item will be transferred to your name.
Be warned though, because if you weren’t able to pay up with your debt, the bank or lender can reclaim your item.
Photo taken from http://www.federalloans.com