Documentation deletion

C

ClarkGriswold

Well-Known Member
Jul 9, 2016
2,878
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Sea Ray 370 Sundancer
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Hey all-

Wondering what a reasonable time expectation is for the deletion of CG documentation? Days? Weeks? Month?

First time dealing with purchasing a documented vessel so I’m here to learn.

thoughts?
 
Cdillerud said:
Hey all-

Wondering what a reasonable time expectation is for the deletion of CG documentation? Days? Weeks? Month?

First time dealing with purchasing a documented vessel so I’m here to learn.

thoughts?
Click to expand...
Just wondering what you mean by deletion of CG documentation? Thanks.
 
QT1 said:
Just wondering what you mean by deletion of CG documentation? Thanks.
Click to expand...
The vessel I’m under contract to buy is documented with the Coast Guard. My lender does not finance documented boats so I need a deletion letter from the CG and will then need to do a state registration upon closing. At least that is my understanding of the process.
 
So your lender wants a lienholder interest on the boat. There must be a way to finance a documented boat. A lot of boats that are documented must get financing somehow, someway. I'd start another thread "How to or who finances a documented boat?" I didn't give it a thought with what you're actually needing with your title.
 
I went through this in 2018. I worked out the financing by having my bank speak directly with the bank that financed it for the seller. They were able to provide confirmation that the boat had no lien (after I paid) other than the USCG documentation. With that all I needed to provide my bank were copies of the termination of documentation from the seller.

It was 3+ months before the USCG completed their part. I boated almost an entire summer with a folder full of paperwork at the helm expecting to get pulled over for not having the boat registered...
 
Cdillerud said:
The vessel I’m under contract to buy is documented with the Coast Guard. My lender does not finance documented boats so I need a deletion letter from the CG and will then need to do a state registration upon closing. At least that is my understanding of the process.
Click to expand...
It might be quicker for you to find a new lender. My lender had no issue with my boat being documented.
 
Jus Cruisin said:
So your lender wants a lienholder interest on the boat. There must be a way to finance a documented boat. A lot of boats that are documented must get financing somehow, someway. I'd start another thread "How to or who finances a documented boat?" I didn't give it a thought with what you're actually needing with your title.
Click to expand...
My understanding is that my particular bank just doesn’t work with documented boats any longer, for some reason.

I could go somewhere else to finance but I have a good relationship with this bank and would like to keep my business here if at all possible.

We were able to check the status on the deletion and it currently is in the Abstract of Title phase. I don’t know if that means we are close or not. According to the seller they sent in the request 3 weeks ago to start the process.
 
jmauld said:
It might be quicker for you to find a new lender. My lender had no issue with my boat being documented.
Click to expand...
I get that. But I’m down the road now and do want to stay with my current bank if at all possible.
 
Cdillerud said:
Hey all-

Wondering what a reasonable time expectation is for the deletion of CG documentation? Days? Weeks? Month?

First time dealing with purchasing a documented vessel so I’m here to learn.

thoughts?
Click to expand...

I have a USCG timeline and good story for you all........ Since purchasing my boat privately last August, I've been going through an over 6-month re-issue process with the USCG to transfer the boats documentation from the old owners name to mine. Besides the fact that you have to deal with the red tape of a government bureaucracy, nothing gets done if you don't have the proper paperwork and stay on top of them.
After getting an email acknowledgement of my initial application after scanning and emailing all of the required documents, it took them 3-months before they looked at the paperwork, a timeline which can be checked on their website. One week after waiting 3-months for my application date to show up on their site, I called to get an idea on when it will be processed and was told it went back to the bottom of the pile because I never responded to the email requesting payment, which I never received!
Another issue I had was that the format and information within the sellers lean release letter was not acceptable to them and they then supplied me with a sample lean release letter, which I'll attach a copy of. I emailed the sample letter to the seller, so that he could request a new lean release letter from his lender in Ohio. The bank sent him another notarized letter, which also was lacking the required information/format and the bank never responded to additional requests he made for the proper document, just before he moved from Ct to Texas!
Last month, I was able to get someone on the phone at the sellers bank, since the title department at the bank does not take phone calls and able to get a case number, email them all the transactions paperwork, along with the request for a new lean release letter containing the proper information/format required to remove the lean, which would then allow them to transfer the documentation into my name and me to then register it with my States DMV.
If I don't have the letter by April first, I'll pass it on to my attorney.

I agree with Jmauld.... to simplify the process, find another lender and whether you're deleting, or re-issuing the documentation, make sure your sellers lean release letter contains the required info, if there is a lean on the CG doc. Good Luck.
 

Attachments

  • USCG Lean Release Letter.pdf
    254.9 KB · Views: 131
Checked status when I got to the office this am and it's been updated to read "Exchange" and according to their glossary of terms it reads thusly...

Exchange - is the term used when changes are made to the Certificate of Documentation (COD) for a vessel which is currently documented with the U.S. Coast Guard. The changes may include ownership, vessel name, hailing port, and/or endorsement(s).

I dunno, feels like progress?
 
Cdillerud said:
Checked status when I got to the office this am and it's been updated to read "Exchange" and according to their glossary of terms it reads thusly...

Exchange - is the term used when changes are made to the Certificate of Documentation (COD) for a vessel which is currently documented with the U.S. Coast Guard. The changes may include ownership, vessel name, hailing port, and/or endorsement(s).

I dunno, feels like progress?
Click to expand...

Hope....is not a strategy :):)
 
The last two boats we purchased, a 3rd party that was acceptable to the lender did all of the CG stuff. Yes, you have to pay upfront, but the lender moved forward and we closed with them knowing the transfer was in process. I got the new paperwork a month or two later. It cost a couple of hundred or so, but no aggravation to deal with.

Bennett
 
In point of fact a documented vessel is better for a lender (and owner) from a collateral protection perspective. CG documentation is proof of ownership that is recognized internationally. A state title is only good within your state, and an out of state (or non US) court is under no obligation to honor it unlike the CG Documentation.

A lender that does not want to lend on documented boats is either entirely clueless as to the business of boat finance, or intentionally does not want to lend on larger boats and is trying to discourage it. Either way despite your relationship you should seek financing from a more boat friendly source because they may also discourage this type of lending with higher rates or fees or onerous insurance requirements.
 
Henry Boyd said:
A lender that does not want to lend on documented boats is either entirely clueless as to the business of boat finance, or intentionally does not want to lend on larger boats and is trying to discourage it. Either way despite your relationship you should seek financing from a more boat friendly source because they may also discourage this type of lending with higher rates or fees or onerous insurance requirements.
Click to expand...

I'm sure there are plenty of great banks out there that have never dealt with CG documentation before. Mine was one of those banks. We boater's aren't exactly in the majority when it comes to lending. Boaters desiring to be documented are even fewer and further between...
 
Stee6043 said:
I'm sure there are plenty of great banks out there that have never dealt with CG documentation before. Mine was one of those banks. We boater's aren't exactly in the majority when it comes to lending. Boaters desiring to be documented are even fewer and further between...
Click to expand...
This lender is boater savvy...but at some point made a determination to no longer finance documented vessels. Not sure of their reasoning. Just the way it is.
 
Cdillerud said:
This lender is boater savvy...but at some point made a determination to no longer finance documented vessels. Not sure of their reasoning. Just the way it is.
Click to expand...

Their reasoning - because it's a huge PITA! Ha. They don't get paid extra to deal with the seven levels of paperwork hell that accompanies USCG documentation :)
 
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