Finance/Repo Advice Needed.

[sailorchic34]

Me I would take the insurance settlement, pay off the boat loan and put the rest in safe low interest investments. Then sell the land.

A year to wait is not that big of deal. Takes at least a year to go through the courts and legal fees are the gift that keep on giving, to the lawyers anyway.

[Capt Phil]

perchance, what is the finance company's alternative? Phil

[Celestialsailor]

Originally Posted by sailorchic34

Me I would take the insurance settlement, pay off the boat loan and put the rest in safe low interest investments. Then sell the land.

A year to wait is not that big of deal. Takes at least a year to go through the courts and legal fees are the gift that keep on giving, to the lawyers anyway.

Ya...I think I would do the same. Especially if it's an open ended adventure.

[boatpoker]

I have a hard time feling sympathy for a bank who will probably roll the bad debt in to a package of derivatives and sell it to a Greek bank. Then the banker who put the package together will retire with a multi-million dollar package and disappear before the **** hits the fan.

[Tony B]

All I'm saying is that there is no serious effort being made to hold off the finance company. They don't want the boat, they want his money. A serious effort to make this work would be a serious offer from him in the form of a reasonable amount of regular payments based on his income til the insurance money comes in. No income is not a serious offer. One of his posts he even said he thinks that he should lay low for a while. I wonder how understanding some of you would be if you were the lender, like selling someone a car and they disappeared because they had no money.
Anyway, I'm done with this thread. Byeeeeeeeeee

[svmariane]

That whole situation is a bummer.

Suggestion for the OP: Whatever you decide, please consider continuing to make small monthly payments on the debt to the finance company. Even if it's only (say) ten dollars a month it serves to show that your intent is to pay what you acknowledge owing.

While the financial institute will no doubt hit you with all sorts of fees those might work out as being less expensive than giving up / walking away from your boat. You, however, will have shown that your intent is to square the debt and that cannot hurt if/when legal actions begin to fly.

US laws frequently make use of the concept of "intent". So should you.

TOKEN PAYMENT: a very small payment made upon a debt and intended by the payer merely to acknowledge the existence of the obligation.

[Wattsailing]

Bet there is no
Money going to come from the insurance company and the lawyer will have a large bill as well and the finance company won't come to the party I have never heard of a sympathetic finance company. So as I see it you only live once set sail sail and live your life to the full pirates live forever.

[David_Old_Jersey]

A token regular payment (even if very token!) is an excellent idea - doubly so if it later has any legal value (from showing good intent) if things hit court (I have no idea what the rules on that are in OP's Jurisdiction).

I still suggest going via the Lawyer, but perhaps an approach that has some merit is your lawyer presenting them with an offer (at least as a starting point for negotiations):

Monthly token payment
"lien" on the insurance claim and / or a charge secured on the land - in exchange for time.
If insurance claim lost or not settled in 12 months will bring the boat back to the USA to sell and / or sell the land.

[capttman]

Wow!!! It never ceases to amaze me how far off track some of these threads can get. The OP was looking for advise. People are accusing him if stealing the boat he owns.. The bank has a lien and can exercise certain rights under the loan agreement at their discretion, the OP owns the boat subject to that agreement.
If you have constructive advise for the OP give it if not seems you should respond to another thread. Just my two cents.

[psneeld]

Having been in a similar situation for the last several years...here's my cut.

First and foremost...who is the financial institution, and who is their financial parent?

Does the boat have a preferred mortgage? Is it Documented? if it is...that could be a can of worms if the USCG gets involved with the Documentation issue..not sure if they can/will...but I would research that also as being in a foreign land and them being contacted by the USCG is probably not good.

If the financial institution is threaded back to any major US bank...there is a chance that the process may take years to get through. One of my properties had an ongoing foreclosure that took over 3 years and they still had their heads up their butt. I got 3 separate checks from banks because of an unfair lending class action suit from the Government....it was settled before anyone foreclosed and I wound up short selling 4 properties...how a class action law suit can be faster than a foreclosure is beyond me...

The moral of my story is depending who is truly behind your loan may think twice about the expenses incurred with a repo...not enough cost benefit possibly...I'd say keep up the pressure and document the crap out of every word exchanged between parties.

Can't say what's going on in the boat financing world...but if te same banks are behind a preferred mortgage on a boat...they are all scrambling in many cases on houses worth a lot more to work with current owners to keep going/refi...anything except foreclosure.

[belizesailor]

They are playing hard ball and you can too. My 2c. You have an attorney...thats a good start. Move any liquid assets out of the USA so they cannot have them seized. Make a token payment to show intent. They cant repo what they cant find...thats one risk of financing a mobile asset like a boat...use that to your advantage...international repos are spendy.

I know a charter operator in Belize who is prepetually behind on his mortgage and has been for years...they have yet to come take his boat.

You could possibly sell the boat, pay off the mortgage, and then rent a place outside the USA. Rental rates are much less expensive outside the USA. We are renting a nice little 1br now in Panama for $300 per month.

[Dulcesuenos]

Originally Posted by cortezsailor

How about taking a equity mortgage out on the land the 4 plex is on and use that to keep the boat payments current?

Just curious perhaps when the boat was purchased he used the rental unit as collateral for the boat if so wont the bank go after that anyhow if he defaults?

[rognvald]

Originally Posted by Celestialsailor

I think there is a big difference in saying leave the boat where it is and "hiding the boat". Secondly, no one here is being a backdoor attorney. That's your coin of a phrase to something you are not in agreement with. The OP clearly stated in his last line..."Any advice would be appreciated". Now if you're done with the soap box, I need it for my go-cart derby.

Celestial, I would never deny my penchant for soapboxes, however, with a lifetime of first hand experience dealing with these matters, it is important for the OP to understand the gravity of making the correct decision in re: his boat. To destroy a lifetime of outstanding credit (800 credit score) because he is receiving bad advice is a mistake. A repossession, bankruptcy and/or foreclosure will remain on your credit bureau for up to ten years and not only will it make it difficult for you to obtain credit, but also, if a lender is willing to extend credit to you, it will be at a very inflated rate of interest--usually between 20-30% here in Illinois. Some people do not care, some do. It's your life. Good luck, good sailing and may your axles be well greased for the Derby.

[psneeld]

what I have learned...this is just one source

Life After Bankruptcy: 5 Steps to Rebuilding Your Credit, Finances and Emotions - DailyFinance

Separate Fact From Fiction About Bankruptcy

Bankruptcy filers are often force-fed a host of myths and misconceptions about how horrible their lives will be in the wake of a bankruptcy proceeding. While life after bankruptcy certainly won't be a cakewalk, unfortunately, much of the information doled out is flat out wrong, according to credit experts as well as people who've successfully and quickly bounced back from a bankruptcy filing.

First, there's the incorrect notion that bankruptcy will automatically disqualify you from getting a mortgage for at least 10 years. Wrong! You can actually be in the middle of a Chapter 13 bankruptcy proceeding and still get an FHA home loan.

There's also the false assertion that getting a credit card will be next to impossible for at least seven years. But this is untrue as well: Most bankruptcy filers receive a slew of credit card offers from banks almost immediately after their bankruptcy is discharged. One study showed that 96% of consumers were offered new credit within a year of declaring bankruptcy.

And then there's the wrong-headed idea that car dealers and lenders will only approve your application at sky-high interest rates. Not so. As many people who've gone through bankruptcy will attest, there are numerous auto companies and lenders willing to finance a vehicle or approve loans at reasonable rates after a bankruptcy

[rognvald]

Originally Posted by psneeld

what I have learned...this is just one source

Life After Bankruptcy: 5 Steps to Rebuilding Your Credit, Finances and Emotions - DailyFinance

Separate Fact From Fiction About Bankruptcy

Bankruptcy filers are often force-fed a host of myths and misconceptions about how horrible their lives will be in the wake of a bankruptcy proceeding. While life after bankruptcy certainly won't be a cakewalk, unfortunately, much of the information doled out is flat out wrong, according to credit experts as well as people who've successfully and quickly bounced back from a bankruptcy filing.

First, there's the incorrect notion that bankruptcy will automatically disqualify you from getting a mortgage for at least 10 years. Wrong! You can actually be in the middle of a Chapter 13 bankruptcy proceeding and still get an FHA home loan.

There's also the false assertion that getting a credit card will be next to impossible for at least seven years. But this is untrue as well: Most bankruptcy filers receive a slew of credit card offers from banks almost immediately after their bankruptcy is discharged. One study showed that 96% of consumers were offered new credit within a year of declaring bankruptcy.

And then there's the wrong-headed idea that car dealers and lenders will only approve your application at sky-high interest rates. Not so. As many people who've gone through bankruptcy will attest, there are numerous auto companies and lenders willing to finance a vehicle or approve loans at reasonable rates after a bankruptcy

The Internet is always right! At the click of a button, you can solve any problem in your life. But, advice is like oats: do you want them fresh from the bag . . . or after they've been through the horse? The choice is yours.