psneeld
Guru
I have a friend that had a 4788 Bayliner and was upside down. His bank allowed a short sale as opposed to a repossession and sale.
The problem with a short sale is who pays the difference between the boat sale price and the loan amount?
Really depends on the short sale agreement....a good short sale attorney (I had one for 4 properties) will get the bank to agree that they will not come after the difference. Some will (especially if the paper was sold to a 3rd party)...many won't unless we are talking bigger bucks on the difference...because the legal fees add up quickly.
In real estate...not too long ago the banks were offering a cash incentive if the short sale went quickly...my one bank sent me a check for $1500 for being out of the property within the month for closing.
The banks are more lenient if the note has been held awhile...remember they made a huge amount on interest all those years...and they get the deduction on the bad loan...so as long as they aren't eating too many short sales and foreclosures...it's just the cost of doing business with them.
One day I was sitting on the beach talking to a guy admiring all the boats at anchor. We got admiring all the boats and I said my center console was the little one over in the corner and he told me where his was. I commented on how people could afford all these really nice boats (mid-90s when times were roaring)...he said they couldn't...he was a banker and that probably at least half those boats would be repoed....boat loans were his top headache. he said enjoy what you have...especially if you own it outright.