Need advice on how to sell or walk away from my boat

Correct me if I'm wrong...in a shortsale situation, if the lender forgives the additional 20K owed, you must pay income tax on that 20K (??)

If they "forgive" the difference then you WILL pay taxes on it. That's how a lot of people get in trouble and end up with an IRS Judgement against them.
 
Try advertising it in Australia. I sold my 2010 Glastron GS249 for over $20,000.00 more than anyone here would give me.

Its worth a shot, it worked for me.
 
I like that line of thinking, a couple things pop into mind...

1. A serious lease contract would have to be in place to protect you from liability.
2. You are responsible for maintenance & repairs.... 14 months in he smokes one of the engines. Yikes!
3. Better not let your bank or insurance company find out about it.

The line of thought is good though. I wonder how expensive it would be for him to set up a "leasing company". Or if his market could even support it.

I've worked in the leasing industry for a number years (cargo containers and port equipment) and this is just not do-able for a one off deal. Legal bill for a well written lease document is usually in the range of $ 50,000 to $ 100,000. I'm working on one project now involving a crane lease financing and the legal bill will probably be more than $ 100k and that is just for modifications to the lessor's standard lease document. There are a lot of other issues as well. Simply put without economies of scale you just can't do it.

The M&R responsibility is a matter of contract it can be on either party. But it will be a bone of contention. The concern about smoking an engine while under contract is real, but its not the worst case. The worst case is the motor going south after the contract is over. In the first case you still have some recourse against the lessee, in the latter you are on your own.

There should also be more insurance, specifically covering the boat lease and liability coverage for what the lessee might do to somebody else. If the lessee kills somebody, their estate is going to sue the lessee, and you as the owner. That is the time you do NOT want to be explaining to your insurance company about this arrangement.

I'd say don't try this, you may find yourself in a worse mess.

Henry
 
Todd...just thinking the same thing as I read what I had missed today. Troll?
 
The joint ownership would work but who wants to pay more than the market value for the boat. He's upside down in the boat so a 50/50 on the going price has a guy pay him $25,000.00 but he still owes $45,000.00 that he can't afford and who wants to go into a partnership with a guy that can't pay his share. This might work if you find someone that wants to come in with no money and they pay $25,000.00 off over the term of the loan, this would lower your monthly payments but it might not be enough for the OP.

I had a relative that turned a car back in because they could not afford the payment anymore, the credit card companies said they were now a bad risk and increased the monthly interest charged, when it cam time to renew the mortgage same thing bad risk higher interest rate. Protect your credit rating, it does not take much to effect it and it can become costly.

Ken
 
Selling your boat isn't always the only option. I think donating the boat would really help you be able to "walk away" from the boat. It'll give you the great feeling of knowing that you were able to contribute to a good cause. Plus when you donate you don't have to worry about selling it. If you're interested in donating I would recommend looking into Boats 2 Charity's program. They accept boats in all sorts of conditions, as well as of all types of boats. They only require you to submit this form, they actually send someone out to pick it up from wherever the boat is located that way you don't have to worry about moving it on your own. They're always willing to answer any questions you may have their number can be found on their web site. Hope this helps :)
 
Sorry to hear and unfortunately you don't have many options. DO NOT do a short sale, it's going to wreck your credit and the amount the bank let's you "short" will be considered taxable income like others have said. Only option I see for you is a home equity line if you have one or can get one. Of course there will be a payment on that, probably just interest, but still some sort of payment.
 
Sorry to hear and unfortunately you don't have many options. DO NOT do a short sale, it's going to wreck your credit and the amount the bank let's you "short" will be considered taxable income like others have said. Only option I see for you is a home equity line if you have one or can get one. Of course there will be a payment on that, probably just interest, but still some sort of payment.

Bill you do realize that this is a 5 year old dead thread that a newbie responded to? And the OP has not been seen since then....
 
Selling your boat isn't always the only option. I think donating the boat would really help you be able to "walk away" from the boat. It'll give you the great feeling of knowing that you were able to contribute to a good cause. Plus when you donate you don't have to worry about selling it. If you're interested in donating I would recommend looking into Boats 2 Charity's program. They accept boats in all sorts of conditions, as well as of all types of boats. They only require you to submit this form, they actually send someone out to pick it up from wherever the boat is located that way you don't have to worry about moving it on your own. They're always willing to answer any questions you may have their number can be found on their web site. Hope this helps :)

Doesn't sound like this would help his situation. He's trying to find a way out of being upside down on a loan and preserving his credit. Giving a boat away to a charity while still owing 75K might just make him a higher credit risk than defaulting. If this was an "unsellable" boat with value and it was paid off then this might be a consideration.

-Kevin
 
My wife doesn't was us to default on the loan, since it may ruin our credit ratings and hurt future potential job opportunities?

I would try to raise as much money from friends and relatives at near 0 interest to see if you could bridge the gap selling under market. I would also cut back 100% on all discretionary spending. I would look to sell anything of value you own to raise funds. Paying back $20K over a long period of time would be simple once your regular payments, operations and maintenance expenses are gone for this boat.

Its going to be a hard time but your wife is right - your credit rating today is too important to risk. Eventually you will come out the other side of this hard time and having a good rating will allow you to accelerate the recovery.

-Kevin
 
Guys....look at the dates
I would try to raise as much money from friends and relatives at near 0 interest to see if you could bridge the gap selling under market. I would also cut back 100% on all discretionary spending. I would look to sell anything of value you own to raise funds. Paying back $20K over a long period of time would be simple once your regular payments, operations and maintenance expenses are gone for this boat.

Its going to be a hard time but your wife is right - your credit rating today is too important to risk. Eventually you will come out the other side of this hard time and having a good rating will allow you to accelerate the recovery.

-Kevin
Guys....look at the dates, this thread is 5 years old. Great advice but a little late.
 
We have a resurrection.
 

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