Taking over payments on boat?

[Terminator]

I have a friend that has a boat that he can’t afford and is trying to sell or he is also thinking about filing bankruptcy because of some debt problems. I would like the boat but I just financed a home and I don’t think that I could get financed right now. I was thinking about telling my friend that if he would leave the boat in his name, let me give him some down and pay his payments for him. I get to have the boat while paying the payments. And when I pay it off or can get it financed in my name then he can sign over the title. Is this a stupid idea or could I make it work with some kind of legal contract?

[geesler]

Re: Taking over payments on boat?

Sounds like you could make it work- just have a contract written out and do it all legal style. Most things can be laid out in a contract.

[SUGARBABY]

Re: Taking over payments on boat?

I agree with Geesler.

[mick-G]

Re: Taking over payments on boat?

Problem here is if this guy is still making payments on the boat, it is legally still his from banks standpoint. It doesn't matter if you are paying the payments, in the bank eyes he is still the owner because of his fiduciary obligations to the bank. He must have the bank turn over the finance loan into your name along with title. Just to give you a idea. If you start making payments on this boat and even if you have a contract it is void, because he has not turned his financial obligation over to you. He could say after you pay a few thousand dollars that he changed his mind, then what? My moto, if you want something, buy it yourself and don't rely on others.

[Terminator]

Re: Taking over payments on boat?

Problem here is if this guy is still making payments on the boat, it is legally still his from banks standpoint. It doesn't matter if you are paying the payments, in the bank eyes he is still the owner because of his fiduciary obligations to the bank. He must have the bank turn over the finance loan into your name along with title. Just to give you a idea. If you start making payments on this boat and even if you have a contract it is void, because he has not turned his financial obligation over to you. He could say after you pay a few thousand dollars that he changed his mind, then what? My moto, if you want something, buy it yourself and don't rely on others.

Actually its the banks boat until he pays for it. So we could write the contract and make it state that we make the checks out to the bank directly and then the payments would be made without any conflicts. I am going to talk to some lawyers before I proceed though!

[kite]

Re: Taking over payments on boat?

Make sure you're covered and go for it.

[mick-G]

Re: Taking over payments on boat?

Actually its the banks boat until he pays for it. So we could write the contract and make it state that we make the checks out to the bank directly and then the payments would be made without any conflicts. I am going to talk to some lawyers before I proceed though!

Im not talking about who owns the boat, im talking about that it is his financial obligation to the bank and he still has title. So in that, what im saying is that even if you are paying his payments it is still his obligation and he still will be the owner if he has title to it. I have seen many probs that can occur in these type situations. Not saying that you can't get a contract written, but in the time peramiters that you choose at some point you will want to transfer title and this is something he must do willingly. This is where i have seen problems happen.

[BIGMOFO]

Re: Taking over payments on boat?

see the lawyer and listen to mick-g. If your friend is in finantial trouble will ridding himself of the boat get him out or it or delay the inevatable? if the bank has a lein on the boat, (which they do), a contract between you and your friend soesn't mean squat to the bank. So you pay on it for the next year, (hopefully you make all checks & downpayment directly to the bank or write the checks to the bank), and he decides to file bankrupcy anyway. The bank takes the boat and your out everything. If you want it see if you can get the loan bro, if not, maybe it wasn't meant to be.

[mick-G]

Re: Taking over payments on boat?

This is exactly what i am saying here.^ Reguardless if you have a contract, if you really want his boat the best thing is to go with him and transfer the title into your name then go directoy to the bank and have the loan transfered into your name as well, because if you don't there are so many problems that can occur if he changes his mind, or claims bankrupcy. You don't want to make alot of payments on a boat and find out later its taken away.

[Got Gear?]

Re: Taking over payments on boat?

I wouldn't do it..

Interest rates are low right now... if the bank won't give you the loan, you probably can't afford to buy it anyway.

[SUGARBABY]

Re: Taking over payments on boat?

Good Point GG?

[Terminator]

Re: Taking over payments on boat?

I wouldn't do it..

Interest rates are low right now... if the bank won't give you the loan, you probably can't afford to buy it anyway.

Oh I can afford it. Its hard to get a loan right after financing a $200,000 home. My wife is a Bartender and makes the money but its hard to prove how much she really makes. We had to pull strings to get the house financed.
And that also includes the little bit of hustling I do myself on the side!!