At our site, we take pride in having just about all of the different forms of documentation that a person might need through the course of vessel ownership. That said, not everyone will need every form that we have at our site. One form we’re often asked about is the NVDC Satisfaction of Mortgage. The truth is that this form can come in handy for any number of reasons, not the least of which is if you plan on selling your boat.
Boat Mortgages Explained
As with a home or car, a boat can be an investment. Many, including the very rich, either cannot or do not want to pay the entire price for their boat at the beginning. So, they’ll take out a very particular kind of loan. While very similar to a traditional bank loan, this loan is called a “Preferred Ship’s Mortgage.” It’s more or less what it sounds like: the bank puts a lien on your vessel and you’ll have special allowances on your mortgage. That way, you can have your vessel while paying it off for a time to come.
When the NVDC Satisfaction of Mortgage Comes Into Play
There are many triumphant days when you have your own vessel. For some, the most triumphant days are the day they purchase a vessel and the day they sell it. For others, it might be a day they had a very special occasion: a party, a proposal, or even just a lovely day with family and friends. However, one very triumphant day could be the day that you pay off your Preferred Ship’s Mortgage. Instead of having to make those payments, you’ve paid them off entirely. That’s when you file for this form: once the mortgage is entirely paid off.
Why This Form Can Be Very Valuable
Put simply, this form can really pay off when you’re ready to sell your vessel. If you try to sell your vessel before the liens are paid off, you may not be able to legally. In many cases, the lien itself would prevent you from selling the boat. Should you persist in doing so, you could face a fine of thousands of dollars (on top of everything else that you have to pay). Besides, just about any prospective buyer would want to see this form before they purchase the boat. It’s really something that you can show buyers to help you get more for your vessel.
The Other Forms You Might Need
The Satisfaction of Mortgage forms can be very important indeed, but they’re far from the only forms that you will need during the course of your vessel ownership. We have the forms for your initial documentation, your renewal, and everything else that you might need. After all, should you sell your vessel, it’s doubtful that the Satisfaction of Mortgage is the only form that prospective buyers will want to see. If you have any questions, we’ll be glad to answer them at (800) 535-8570.