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post #1 of 7 Old 08-08-2015 Thread Starter
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Owner finance agreement template

Does any one have a template for owner financing?
Some short but covering being 'interest insured', making sure the sailboat is lien properly, etc... Just a starting point for a agreement and terms. I have most the details but Some do this on a hand written paper and others have attorney write up the agreement, I think I am looking at something in the middle.

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post #2 of 7 Old 08-08-2015
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Re: Owner finance agreement template

Patrick,

Whatever you do, don't do this without the advice of an attorney. The document you are talking about is a secured mortgage on movable property, plus a promissory note, plus lenders restrictions. It is not a simple document if you want it done correctly. Add in the maritime nature of the asset, and you really need professional advice, ideally from someone who is licensed in both your state and is familure with maritime law.

Sure you can do it on the back of an envelope, but if you want it to hold up in a court if it needs enforcing I wouldn't.

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Last edited by Stumble; 08-09-2015 at 09:00 PM.
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Re: Owner finance agreement template

Listen to Stumble. Keep in mind that a boat is even more portable than a car. In order to enforce the loan in foreign countries it must be a registered (not simply licensed) vessel with a marine mortgage on it - not cocktail napkin stuff.

I would never carry financing on a boat I was selling - if the purchaser can't get financing they probably can't afford the boat. My wife & I worked for a major multinational bank for most of our careers and one thing we learned is that if they won't lend you the money, you probably can't afford it - their policies have been developed and tuned through decades of experience losing money to bad loans.

I, myself, personally intend to continue being outspoken and opinionated, intolerant of all fanatics, fools and ignoramuses, deeply suspicious of all those who have "found the answer" and on my bad days, downright rude.
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Re: Owner finance agreement template

You also need to be expert in perfecting the lien and prepare to do tax reporting for the borrower, ie send them a 1099. Crazy to do this alone.


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Re: Owner finance agreement template

I have read up on this and offering this as an option. I have talked with many people that have down this to a simple sheet of paper and said that would do it again but I have also seen it where people would hire a attorney and have a extensive document agreement, notarized, extensive restrictions, etc...

I guess I am more trusting than others.

Patrick

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Re: Owner finance agreement template

I'd suggest you talk to people who did it themselves and had their boat disappear over the horizon before the first payment was due.

There are plenty of them out there.

I, myself, personally intend to continue being outspoken and opinionated, intolerant of all fanatics, fools and ignoramuses, deeply suspicious of all those who have "found the answer" and on my bad days, downright rude.
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Re: Owner finance agreement template

I sold a motorcycle to a friend's wife on installments, so she could buy it for her husband's birthday. I basically had her sign an IOU and I signed over the title without a lien for about half what the bike was worth. There wasn't even interest. It took her six more months to pay me than she said it would and I'm certain, if I didn't prod a bit, she would have never fully paid me. These are friends!

If you don't properly file liens and have enforceable contracts with a stranger, you could luck out or you would have to be comfortable that your faith in human nature is worth losing it all.


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