Loan Question(s)

[Bill_R]

Hi-
We are applying for a boat loan through our bank and have been told that we cannot close until after the Coast Guard reviews the vessel's USCG documents and gets them back to the bank, and that this could take 4-6 weeks! Furthermore we are expected to pay registration fees of 400-600 dollars. Has anyone heard of something similar?

Perhaps I'm just being naive but I figured funding a boat in our price range (mid 20ks) would be a relatively simple matter.

Any advice on how to proceed with the bank or letting the owner know that it could take that long would be appreciated.

Thanks CF
-Bill

[osirissail]

What you are paying is for an agent to research the USCG documentation to see if any liens or encumbrances are logged against the vessel. Typical cost of the "documentation service" is US$400. The actual USCG documentation fees are much less than that. You are paying for an agent to do a service that the bank wants done to insure that they are insuring a vessel that will be owned by you and does not have any claims against it from previous owners.

[svHyLyte]

The following Documentation Agent handled our documentation in about 10 days:

Gloria Rector Vessel Documentation
Contact: Jane Beale
Alternate Contact: John E. Beale
Address: PO Box 6750 Lakeland FL 33807
Telephone: (863) 644-5536
Fax: (863) 644-7646
E-mail: jbeale9594@aol.com
Web Site: www.janebeale.com

[Bill_R]

Thanks for your replies, and the recommendation on the agent. Unfortunately, I think the bank has their own agent and has already send the USCG document along to them.

On a somewhat related note, the bank is asking for the serial number of the inboard, which the current owner does not recall seeing on the engine, and its not in the engine manual. It is a 1992 Westerbeke. Any ideas where the SN might be?

[sded]

Engine serial number is normally required both in a survey and insurance policy. Did the PO have either of these?

[Bill_R]

The PO is at the boat today and he only number they have found on the engine is: PN36784

Seems too short to be a serial number, maybe PN stands for part number?

[sded]

Could be the SN-mine is a series ID followed by a 5 digit SN (Volvo). Surprised surveyor and Insco didn't insist on it in the past, though.

[hellosailor]

Bill-
Banks like to use smoke and mirrors to hide profiteering.

They probably want the $600 to use THEIR highly paid agent, because they trust their own agent and they don't trust you or the USCG to do a proper title/lien search. What they really want, is proof that you are getting clear title with no liens.

But it is their money so they will do it their way or not do it.

If the vessel was professionally built after 1972(?) there will be a "HIN" hull identification number in at least one place on the boat. You can email or CALL the USCG Vessel Documentation Center and they are quite happy to explain what and where to look for, and what the actual laws are.

If you belong to a credit union, you may be able to get better terms. If the boat is +30 years old...fewer lenders are willing to take it on. And if you get some other type of loan (as opposed to a mortgage secured by title to the boat) then you don't get the chance to deduct mortgage-related costs on your tax filings. Tradeoffs.

But there are lots of banks and lenders, if one isn't being reasonable...know your facts, don't be afraid to ask for better terms or behavior.