Hauled Out & Marina Closes, What Happens?

JimMcGee · #1 10-25-2012

Here's the scenario:

You've paid your winter storage and your boat is hauled out and sitting on stands in the yard.
The marina goes bankrupt. There's no one to run the travel lift and the bank has liened everthing in sight.
Can you get your boat out, and how many hoops do you have to jump through to do it?

Has anyone encountered this situation?

Jim

finding41 · #2 10-25-2012

Dig out your paper work. You will need it. Make copies to give to the interim management. I don't think you have to worry about having to move it until spring as you have paid for storage (and launch I hope). The bank will honor the contracts.

paulk · #3 10-25-2012

I'd keep my eyes open, put the cover on, and wait until Spring. The Bank won't want to alienate potential customers (either marina or Bank) by making you sue them to get access to your property. It would be bad for business. The boat isn't going anywhere, and you don't need the work of launching it, moving it, and rehauling.

JimMcGee · #4 10-25-2012

It hasn't happend yet. But there was a conversation with the marina today that set off some alarm bells and started me thinking "what if?"

I've already paid for next summer's slip which includes discounted winter storage. It will cost a couple of hundred extra, but I'm seriously thinking about wintering at a different marina. I'm trying to figure out how real the risk is for the above scenario and how long it would tie me up if it happened.

Assessing the risk is the problem. No one is going to come right out and discuss their financials...

JimMcGee · #5 10-25-2012

Quote:

Originally Posted by paulk

The Bank won't want to alienate potential customers (either marina or Bank) by making you sue them to get access to your property. It would be bad for business.

Paul,
You have more faith than I do. I've looked at a couple of foreclosures and short sales for my son. Let's just say I've seen some shocking behavior from all sides. It's been a real eye opener as to what can happen; and just how badly banks can behave.

Jim

finding41 · #6 10-25-2012

Assessing what risk?
They can't take your boat. Or hold it. I believe the bank is required to keep the contract. The next year may be different...
Worst case is they refund your $ and build condos on the site.
Here is an opportunity to purchase a cheap marina!
It is the perfect time to go into the bank and saying "lets make a deal".
They (the bank) don't want to run a marina. Really.

JimMcGee · #7 10-25-2012

Quote:

Originally Posted by finding41

Assessing what risk?
They can't take your boat. Or hold it. I believe the bank is required to keep the contract. The next year may be different...
Worst case is they refund your $ and build condos on the site.
Here is an opportunity to purchase a cheap marina!
It is the perfect time to go into the bank and saying "lets make a deal".
They (the bank) don't want to run a marina. Really.

I'm afraid you're mistaken. Life is never so easy when lawyers get inolved.

What I'm really hoping for is some perspective from someone who has been through this or knows someone who has.

delite · #8 10-25-2012

Quote:

Originally Posted by JimMcGee

It hasn't happend yet. But there was a conversation with the marina today that set off some alarm bells and started me thinking "what if?"

I've already paid for next summer's slip which includes discounted winter storage. It will cost a couple of hundred extra, but I'm seriously thinking about wintering at a different marina. I'm trying to figure out how real the risk is for the above scenario and how long it would tie me up if it happened.

Assessing the risk is the problem. No one is going to come right out and discuss their financials...

If the marina really is in trouble you should be prepared to lose 100% of what you have prepaid if you leave now. I'd stay put and take anything of value with me. Expect to lose any security patrols the marina may provide over the winter, that is probably their biggest expense in the winter assuming no power. The bank will put boats back in the water in the spring and then shut it down. Not much of a market for used travel lifts so it isnt going anywhere. Worst case scenario would be you and others on the hard have to rent a crane to get all your boats back in the water in the spring. Spread over 50 boats that isnt to bad.

chrisncate · #9 10-25-2012

Possession is nine tenths of the law.. I'd be worried about my boat if I were in your position, let alone what you've paid up for.

miatapaul · #10 10-25-2012

Quote:

Originally Posted by paulk

I'd keep my eyes open, put the cover on, and wait until Spring. The Bank won't want to alienate potential customers (either marina or Bank) by making you sue them to get access to your property. It would be bad for business. The boat isn't going anywhere, and you don't need the work of launching it, moving it, and rehauling.

You make it sound like a bank would be likely to run it. Best case scenario is they give you a 10 day window to get your boat out. More likely lock the gates and let a court straighten it out in a year or two.

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