Boat Loans - Lessons Learned

[CurrentSea]

Just passing on some info for other boaters as I am learning alot here today.

Since my boat is going to be a total loss, there obviously is concern over the payoff. Insurance companies want to make sure money gets to the right people, and rightfully so.

If your boat is titled, then this probably does not apply.

If your boat is documented, then your boat has what is called a preferred ship's mortgage which is a lien registered with the Coast Guard against the documentation. It does not reflect on the documentation at all. Only way to know who the lienholder is, is to do a abstract of title, basically a title search.

Coast Guard obviously relies on loan companies to keep this information current.

If you have paid off your loan,
If you have changed loan companies,
If you refinanced your boat,
If you disposed of your boat,
....then you are obligated to notify the Coast Guard. Do not rely on your loan company to do the right thing.

An abstract of title costs $25 and is not a bad thing to do and keep on file if any change happens. It will only expedite any claims you need to make.

For me, I paid off my loan in 2011, but have no proof, just a letter from the bank. So now I need to do the abstract to confirm the Coast Guard has the right info.

Then I need to file a form to show boat is disposed of by me.

Just a public service annoucment for my fellow boaters!

 

[jeff_c]

Thank you, Dave.

 

[mx8]

Thanks Dave, good info, I paid mine off last year as well and aren`t sure if the proper stuff was done, I`ll check into it.

 

[CurrentSea]

FWIW, I actually have someone doing it for me becuase I used them to document the boat.
Place is called Tradewind Services in CT. Speak to Debby.

 

[Victorias Secret]

Boat US has listed as a current leinholder on my insurance policy that bank that it is financed with (SunTrust). A lien against the boat is not listed on my CG Documentation. The adjuster said they will contact the bank for the payoff and then send me the difference. Time will tell but it appears they have the system under control....

 

[seaeric]

FYI, The Coast Guard is waaaay behind in recording Satisfactions of Mortgage. As of today (per NVDC website) they are processing Satisfactions received by them on Feb. 27, 2012. If you paid off since last Feb - to prove no lien you will need an original signed and notarized Satisfaction of Mortgage from your lender. They should have sent you one with your "paid" note. Getting another one from the bank after the fact sometimes proves to be problematic.