Complete the Preferred Ship Mortgage Form with Our Help

Do you need to take out a loan before you can afford to buy a vessel? If so, then you might want to think about taking out a particular type of mortgage known as a preferred ship mortgage. This is a great way to protect your vessel and make sure that you can get the loan that you need for the purchase, while also satisfying the demands of the lender. In order to understand what this mortgage does, and how to fill in the preferred ship mortgage form correctly, you can discuss the requirements with the team at Maritime Documentation Center.

What Is A Preferred Ship Mortgage?

When you take out a preferred ship mortgage, this allows the lender to place a lien on the boat that gives them first claim if your company falls or if you are declared bankrupt. In order to get the mortgage you need most lenders will insist on you taking out this specific mortgage, and then filing a lien with the USCG. What this means is that you cannot ask the Coast Guard to make changes to the documentation for your vessel, including changing the name, adding or removing owners or altering its hailing port, without the consent of the lender. In addition, it is likely that you will be required to obtain a documentation certificate, which will register the vessel with the coast guard. This is all designed to protect the lender in case of default and may mean that you can take out a larger mortgage.

ship mortgage form

Understanding the Form

In order to get the most from the mortgage, you may need to understand more about what the mortgage form contains. This contains the details of an agreement between yourself and the remainder of the lenders, complete with their names and addresses. The mortgage form must involve the entire vessel, not just parts of it or when it is in a particular position. In most cases, the mortgage will also not be accepted without the valid documentation certificate from the USCG, nor will it be accepted without official numbers and a name. These files have to be completed or you will not be able to access the rest of the mortgage, leaving you unable to buy the vessel that you would like.

Let Help with The Form

One of the hardest parts of filling in the preferred ship mortgage form is that it is overly complicated. All of the parts have to be filled in correctly in order to satisfy the demands of the USCG. They are likely to return the form to you if they are not satisfied and this could delay obtaining your full mortgage. Find out how the Maritime Documentation Center can help you to complete the form quickly today and talk to us about filing for documentation at the same time. We can help you, so reach out to us using our online form, or call (800) 535-8570 now.