Preferred Ship Mortgage info needed
 

So I purchased a boat that had no title because the State that I purchased it from apparently was not a title State. The bank that I financed the purchase through had no problem with this and never made mention of it at all. When I had the boat shipped to me I went to the DMV to get it registered and they told me that without a title they could not register the boat. I then went ahead and had the boat Coast Guard Documented so that I could at least use the boat.

I still have no title for the boat just my Coast Guard Documentation paperwork.

2 1/2 years later the bank contacts me because they just realized that they basically have an unsecured loan out on my boat. The bank just started asking me to sign off on a Preferred Ship Mortgage that appears to be some form of a way for them to secure their interest in the boat.

What do I do...? The wording in the Preferred Ship Mortgage is obviously not worded in my favor and I really don't like it at all.

Is this form common..?

Any help would be greatly appreciated.

My name is Mac McKeand, and i am actually a lawyer, that handles admiralty cases, and i happen to have a 98 35 lightning. The prefered ships mortgage is just what you think it is, it is a way for the bank to secure a lien in your boat. You may to try to get them to reduce your rate and refinance the mortgage in exchange for the signing the new agreement and helping them perfect their lien. If you have some questions call me. My cell is 281 948 0333.

Thanks a lot for the info. I have already sent them an email requesting a lower interest rate. I was also contemplating putting this boat into a LLC out of Delaware to protect me and my other assets. I advised them of my intentions and let them know that they could still secure the loan even though it will be in a LLC with me guaranteeing the loan. I haven't heard back yet from the bank.

That is the same type of document that is on my CD boat.

Kansas doesnt title boats, but the registration is the title, the guy that bought my TG talked to his DMV and they said no problem issuing a title, did you get the registration when you bought it.

No registration because in NY a registration can not be converted into a title. NY State sucks all the way around no matter what you go to do..

10-4 on the Sucks