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Legal Advice needed

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Old 02-22-2006, 09:36 PM
  #21
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Default Re: Legal Advice needed

As odd as it sounds that the bank let this happen I don't smell BS.
I smell screw up.
So what are the chances that the person at the bank screwed up in not properly collateralizing the boat and now won't help because they risk getting in trouble?
Like... can't go to the boss for help because then the boss would know kind of thing.
Buddy needs to pay the bills. That really is number one, but the bank has a clear interest in getting the paperwork straight. A title free lien is bupkis. But the signature on the loan docs is a promise.
I would think that someone in the loan department at the main bank regional center would be very interested in helping... if your buddy took the lapsed payments in with him when he went to straighten it out.
They want the right paperwork. They do NOT want to repo the boat. Believe me. It ain't worth crap to them compared to that note.
Especially with crappy/nonexisting documentation.
They want buddy to make his payments. Don't pay early. Just on time.
They will not call him on the loan for this if he makes his payments.
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Old 02-22-2006, 09:49 PM
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Default Re: Legal Advice needed

Quote:
Originally Posted by Von Bongo
first just because the bank can't perfect the lien doesn't mean the contract for payment isn't valid. He signed the note he owes the money.

It's the buyers responsibility to assure marketable title. Sounds like he didn't get an abstract of title search on the boat before he bought it to know who owned it. He may find out that the guy that sold it didn't own the boat...see the National Marine thread for reference.

He owes the money and if he can't produce the documentation to perfect the lien the finance company can probably demand payment in full if they want under default terms.

This is correct. At the end of the day it is up to the buyer to
pay the debt no matter if it has a title or not. I feel for your firend but all this should have been addresed pryor to signing the loan docs. I hope he pays on time and holds up his end, it is no fault of the lender.

The best advice is to keep paying the pmts and keep chasing on the title. This wont go away and will get worse if he elects to not repay. Not what you want to hear I know.

Good luck.
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Old 02-22-2006, 10:10 PM
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Default Re: Legal Advice needed

I work for a bank and can tell you that they perform a title search on the documented vessel before issuing the loan.

As stated above, your buddy signed a note guaranteeing the loan and is obligated to pay. Clear title or not doesn't release him of this liability. Unless your buddy has the ability to pay for everything with cash going forward, he need to protect his credit.
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Old 02-22-2006, 10:11 PM
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Default Re: Legal Advice needed

I agree, time to play detective! Find out all the info you can on Mark and track him down.

I've had to track down a few previous owner's of mobile homes because when bought/sold the property was being transferred but the actual home(they have titles) weren't being transferred. Then 10 years later the problem pops up!

Or take the bill of sale and try to register(get a title) it like someone else stated.

But regardless, he is responsible for the loan!

Last edited by onesickpantera; 02-22-2006 at 10:20 PM.
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Old 02-22-2006, 10:17 PM
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Default Re: Legal Advice needed

Quote:
Originally Posted by Marginmn
So I guess I can just walk into any bank, say that I own a $1.2 million dollar Outerlimts, have not title or other paperwork to prove it, fill out a bill of sale to some guy who wants a loan, and the bank will cut me a check?

I still don't buy his story.
I don't doubt that story at all. It depends on his bank and what kind of relationship he has with them. I've NEVER presented any form of written documentation before buying a boat. I just give them the VIN numbers from the boat and trailer, sign the paperwork and have them cut me a check. THEN I go get the boat. After transferring the boat into my name I give the bank a copy of the title showing their lien on it.
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Old 02-22-2006, 10:22 PM
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Default Re: Legal Advice needed

Von Bongo's first post pretty much says it.

He's not screwed. He barrowed money and is bound to repayment as agreed. And secondly but separatly, he has a doc problem to work out on his boat.
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Old 02-22-2006, 10:28 PM
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Default Re: Legal Advice needed

Quote:
Originally Posted by Ron P
What does documentation have to do with a title? Documentation is just a form of registration??? Right?
USCG document that you get renewed every year is in fact your title. If all the paperwork is up to date the transfer goes quite smoothly, at least that has been my experience.
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Old 02-22-2006, 10:52 PM
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Default Re: Legal Advice needed

Did he take a loan out on the boat or put the boat up as colateral? If he did, they can repo the boat. If he did not use the boat as the colateral then they will look for whatever he used for the colateral. Try doing a search for the doc name and it will show the owners.

Hope you get it straight.
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Old 02-22-2006, 11:34 PM
  #29
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Default Re: Legal Advice needed

I bought my boat at the end of last year and had similar title concerns. The bank apparently did a title search, but cut a check to the seller's broker well before they had title in hand. In fact, although I understand they now have the necessary transfer paper work from the seller (which was received recently), it will still be a while before I receive my documentation due to the current processing time at the USCG offices.

That being said, since my lender charged me a $550 "title processing fee", as far as I am concerned, I believe I may have recourse against them if the transfer becomes problematic. It seems to me that they wouldn't legally get away with charging a professional fee (which was essentially represented as bullet proof) and then not delivering. Did you friend pay any titling fees (other than direct costs) to the lender?

Regardless, I agree with rule #1. Don't let your credit get hurt.
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