Do you have a loan?

If someone purchased a boat with a secured loan, the bank uses the borrower's boat as collateral and will put a lien on the boat title. The lien will be taken off the boat once the loan is fully paid. The lender has a right to repossess the loan collateral if the borrower stops making the payments on the loan. If the borrower continues to breach the contract, like making late payments the borrower may default on their loan. Defaulting on a loan will allow the bank to then repossess the borrower's boat. Typically lenders will give the borrower time to catch up on late payments or restructure a new payment plan. The contract between the borrower and the lender will explain what constitutes a default on the loan contract. If the contract is breached the lender will legally have the right to repossess the boat.

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Seizing the collateral

After the contract is breached the lender will notify the debtor by mail of their intent to repossess the collateral. The debtor may choose to voluntarily surrender the collateral instead of facing an involuntary repossession. If agreeable arrangements are not met the lender will start the process of finding a repossession company to take possession of the collateral.

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Selling process

The bank will then start the process of selling the boat. They use the money made off the sale of the boat to pay back the loan. Legally, the bank must notify the borrower of its intent to sell the collateral. If the sale price does not pay off the loan it may result in a deficiency balance against the borrower.

Contact us at info@marineassetrecovery.com with any questions or to receive our repossession fee schedule!