BoatWiki - Definitions
An affidavit of repossession, as it relates to the boating industry, is a sworn statement on behalf of a marine lender. It sets forth the chronology of events, including a physical repossession, that culminated in the sale or liquidation of such collateral. This is known as an extra-judicial or non-judicial foreclosure, which is typically implemented according to the relevant state level uniform commercial code regulations.
A properly executed affidavit, along with supporting documentation, will generally allow a purchaser to gain title to a vessel that was sold pursuant a non-judicial foreclosure. When executed in accordance with the appropriate regulations, it should be honored by most state and federal agencies.
Purchasers of boats sold under these circumstances should be aware that any liens or encumbrances, other than those of the foreclosing lender, will remain valid even trough a subsequent change of ownership. It is also unlikely that a foreclosing lender will have any recourse for loan balances not fully recovered from the sale. In order to avoid these issues, it would be necessary implement the foreclosure through a state or federal court rather than non-judicially.
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3/14/2022 - Page initiated by Team BoatWiki.