A trawler - or any powerboat - is probably less likely to go far from home than a sailboat given the costs involved. But the security of a mortgage assumes the asset ( boat) is tied at the dock and will be easy to seize and re-sell in the event of default. I wouldn't be so sure that is the case. Heaven help you if the new owner ships out. Due diligence would require looking at home ownership, jobs of borrowers, and taking collateral security. Being a co-insured is not good enough - you need to have 'first loss payable ' status on the insurance policy.
In all cases return follows risk...there is a reason why the bank won't lend the buyer the $. Getting 6% is little comfort if the security moves to South America or heaven knows where... Randall E. Walford MBA LL.B., Esq 2. Re: Selling your old boat (djhaug...@juno.com) _______________________________________________ This List is provided by the C&C Photo Album http://www.cncphotoalbum.com CnC-List@cnc-list.com
