Hello, everyone. I've finally sold my boat... almost. I still owe money on the mortgage. The prospective owner wants to make a cash purchase. I don't really know how to get the mortgage paid off and the title transferred to the new owner in one transaction, since the bank is holding the title. One option is for me to pay off the boat and get the title in hand, but that would require selling stock and taking a tax hit. So, I'd rather not. Anyone else deal with this situation? What was your solution? Paul McGhee sv Escape Artist h336
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I don't know, but call your mortgage company...
and they may tell you how to do it. Maybe converting the cash from this guy into a cashiers check... or the guy can get you a cashiers check in the name of the mortgage company. Don't know... but call them up.
and they may tell you how to do it. Maybe converting the cash from this guy into a cashiers check... or the guy can get you a cashiers check in the name of the mortgage company. Don't know... but call them up.
Take them along
write the new owner a bill of sale - take him to the bank, have him pay off the boat and give him the bill of sale all at once. Then take care of title transfers (which could take a while, unfortunately)
write the new owner a bill of sale - take him to the bank, have him pay off the boat and give him the bill of sale all at once. Then take care of title transfers (which could take a while, unfortunately)
Shouldn't be a problem
It works just like a mortgage on your house, except for the CG documentation if required depending on the size of the boat. A marine documentation company can handle it for you. In my case back in the spring it cost me(the buyer)about $600.
It works just like a mortgage on your house, except for the CG documentation if required depending on the size of the boat. A marine documentation company can handle it for you. In my case back in the spring it cost me(the buyer)about $600.
Hi Paul, since the bank still holds the note on...
your boat, they are the lien holder. You can keep it simple by both parties making the necessary arrangements with the lien holder. Once both parties have signed the Sales Agreement, the buyer makes out a check to the lien holder for the sale price of the boat. The lien holder cashes the check, uses the proceeds to pay off the principle, plus any applicable taxes, then writes a check to the seller for the difference. The lien holder then releases the title to the State for title change. The title change part can take a few weeks. Terry
your boat, they are the lien holder. You can keep it simple by both parties making the necessary arrangements with the lien holder. Once both parties have signed the Sales Agreement, the buyer makes out a check to the lien holder for the sale price of the boat. The lien holder cashes the check, uses the proceeds to pay off the principle, plus any applicable taxes, then writes a check to the seller for the difference. The lien holder then releases the title to the State for title change. The title change part can take a few weeks. Terry
depends on each State
If your state is a title state, then there's a place on the title for the lien-holder to sign off for the loan repayment. Simple. In non-title states like Alabama, Buyer brings a bag of cash to Seller, who then writes a bill of Sale and the buyer then registers the boat in their name. It's goofy, because what if the Seller owes a mortgage on the boat and what if he just keeps the cash and never pays off the boat? I don't know, but I was the Seller in this case and started thinking about what would happen if things/people hadn't been thinking honestly? Anybody have thoughts on that?
If your state is a title state, then there's a place on the title for the lien-holder to sign off for the loan repayment. Simple. In non-title states like Alabama, Buyer brings a bag of cash to Seller, who then writes a bill of Sale and the buyer then registers the boat in their name. It's goofy, because what if the Seller owes a mortgage on the boat and what if he just keeps the cash and never pays off the boat? I don't know, but I was the Seller in this case and started thinking about what would happen if things/people hadn't been thinking honestly? Anybody have thoughts on that?
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