Larger Boat Repo Question

[BN1964]

We had a boat that was purchased to live on (when we had the money obviously).

The boat was eventually repossessed. Shortly after it was in the banks hands we received 2 settlement offer letters. The value of the loan was $275k, the settlement offers were $150k. Like that was going to happen!

The boat went to a boat auction house (the same one that had the Madoff yachts) and the boat was purchased and shipped over seas and the letters stopped completely.

I talked to a friend and he thought that it may be treated, by the bank, as a foreclosure. Something about the bank being unable to come back to us for the difference after the boat was sold. Does anyone have any experience with this sort of thing?

[justbroke]

If it were a foreclosure, then it would not have been repossessed. If it was treated as personal property (and just a boat mortgage), since it was repossessed, then you may be subject to a deficiency. It would really depend on whether the debt was discharged in the bankruptcy or that the Mortgage, Installment Agreement, and/or Promissory Note does not provide for a deficiency, which would be odd.

What brings this up? Was this recent? Did you ever file bankruptcy? If you filed, then this is all moot.

(I just read in another post that you have not filed and have been "off the grid" for some time.)

[BN1964]

Yeah, It just seems odd that after the sale of the boat all communications have stopped. With something of that size you would think "someone" would try to collect.

Correct, we have not filed and don't plan to... at this point anyway.

[despritfreya]

At some point, either the lender or the junk debt buyer will sue. When is anyone's guess. This, of course, assumes that the amount the boat was sold for was less than what you owed.

Des.