If i had a 2005 four winns funship 234 that sunk, then got repo ed. do i owe any tothe bank if sold at auction?when a boat or rv is repo'd and they sell it a a auction and it sell for less then what i owed on it, do i have to pay the bank the differnce from what was owing? do i have to declare tothe bank any problems with it or that it sunk, some one told me that if if had been sunk that i would have to declare it, is that true |
Yes! You do still owe the bank for the balance after sale, however if you had insurance on the boat before it sank, they would still have to pay for your loss, or if the bank has insurance that would pay them, then it has to credit you for that. You on the other hand don't have to declare it sunk, because the new buyer purchased it at a bank auction. I hope this helps!
OK if it's financed then the bank requires insurance to protect their interest period! If you fail to keep insurance on it then the Bank can force place insurance on the Boat that protects them against loss. They will then add the premiums to your loan.
Why you did not report this to your Bank or insurance company is a mystery to me. Sinking is a covered loss, unless it it is a deliberate act. Then the claim will be denied .
Even if you left the drain plug in the boat and it filled up with rainwater destroying the engine it's still covered.
By not reporting it you may have left yourself in a bad situation
as is the boat is worth nothing! repaired it's worth thousands and if totaled the insurance would have paid off the bank loan directly to the bank. You would get nothing in the way of a settlement and may still owe the bank any deductible. But as it is now your SOL
Among other things I am a marine surveyor and deal with insurance companies all the time
Your question is "if". Insurance companies are much smarter than you or your friends, and have an abundance of lawyers. If such a thing happen, the owner is liable for much more than the boat. If there was any ecological damage, be prepared to pay for that also. If they prove you did it intentionally, you will be going to jail. If the insurance company pays, they will investigate you. You will be well acquainted with authorities and the insurance lawyers. Sell the boat, and take your lumps. Your obvious.
If it was sunk u should of reported it to the insurance company who should of paid it off. Yes u will owe the difference of what u owe and what it sold at auction.
This same basic thing happens to cars all the time about being repo ed to the bank. YES you will have to repay the amount between what they sell it for & the amount you owe.
You owe the difference.
Check with your insurance company to see if they can provide some help.
Best of luck
I think this event has not yet happened. Someone who can't make the payments deciding to commit fraud. Hoping it will relieve them of their obligations.
