Originally Posted by StuM
> I got on her and found the owners info and he said he had already filed a claim and if I got her off the shoal I could have it.
And what did the insurance
company have to say about that? How did you establish ownership
when you sold it?
Very Good Question
Short Story -
I established a salvage contract
with the insurance
company with the help of my dad and after the salvage
I acquired the title for a $1 from the bank.
Long story as short as I can make it -
Since the bank did not want the boat and I was taking the risk we negotiated with the bank and insurance company at no cost to avoid a "salvage" title on the boat so it would be insurable and loan ready upon future sale
. This covered the insurance the insurance company has. Which is technically a derivative for the fiscally proficient people.
Since the insurance company already covered the owners loss and the estimated repairs
exceeded the amount the owner owed on his loan from the owners standpoint it was better to let the boat go.
Even slight damage totals most older boats in the eyes of a insurance company. He "The owner" basically got a check for more than the boat was worth which was also enough to cover what he owed the bank on the boat loan.
I'm sure this affected his future rates.
That turned the boat into a floating asset or liability depending on how you look at it. Either way the bank owns it free and clear and does not want to deal with it. Since we already had the boat in possession the bank basically said here's the title and give us a dollar to make it a legal
Anything a bank owns free and clear does not go to auction
. The bank is not in the business of storing and fixing boats. Or any other asset or liability from their own ideals. This is because banks are not brokers. The are retailers or wholesalers of financial products not physical assets.
Thus inspiring me to become a salvage diver many years later for a hobby.
It gets really confusing after awhile which is why I should spend sometime outlining this stuff and share it with others. It's not insider information it's looking at risk practically. This single
experience was enough experience to teach me how to handle my finances at a young age.
I hope I did a half decent job trying to answer your question