trailer brakes and set up...

Sounds like the OP's brakes need to be adjusted. The master cylinder is compressing al the way, hence the clunk. I'd adjust them and then make sure there is brake fluid and then give it a whirl.

I've had electric brakes on a home made boat trailer for 7 years. No problem and we dunk weekly in freshwater. When we head to the San Juans we sling the boat in to avoid dunking the whole trailer in salt water. We usually do that once a year. If I lived closer to the salt water and could get out on it more often, I would add the flush kit and dunk my trailer. I know ALL of the connections are soldered, siliconed and heat shrunk to guard against salt water intrusion. The nice part is that they work IN REVERSE!! I've watched trucks slide back down the ramp while the driver is trying to hit the brakes and surge brakes don't work in reverse!
 
I think basically the Hyd. brakes don't work due to lack of use then the master collects rust because of the moisture not being dissipated. I redid brakes on my last one and they seemed to only work for a year or so then needed to be redone on my car trailer w/electric brakes they always work no matter how long it sits. the brakes on my boat trailer look brand new but the Master is shot. It was an exciting 250 mile trip home from Grand Haven Mi. down I-80 to the ILL. Toll Way, just glad it was a Sunday and I had an I-Pass so stopping was at a minimum
 

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