When you decide to be a member of the boating community, it is really important to make sure that you understand all of the relevant terminology that you are likely to come across in the course of your vessel ownership. This is especially the case when it comes to the financial side of things, and a preferred ship mortgage is definitely something that you are going to want to understand. With this in mind, here is everything that you need to know about a Preferred Mortgage with the US Coast Guard, from what it is to how it might affect you.
What Is A Preferred Ship Mortgage?
This is typically a type of mortgage that has been approved for vessels that measure greater than 26 feet in length. As the phrase suggests, the notion of a preferred mortgage might be confusing if you are not an expert, but once broken down, the arrangement can be understood in strong and simple terms.
What Is Included In The Mortgage Form?
The most crucial elements of a preferred ship mortgage form include the signature of the vessel owners, as well as the addresses of both the Mortgagee and the mortgagor. It is important to note that the mortgage needs to be extensive enough to cover the entire vessel, not just a specific part of it when it is doing a specific job in any specific location. The vessel needs to be identified by its name, official number and hull number. Your vessel will not be accepted for a mortgage unless it has a valid and up to date Certificate of Documentation.
Certificate Of Documentation
Guaranteeing a loan for your vessel is usually something that a person wants to do quickly, so something that you might want to consider to ensure that you are always keeping on top of your ownership situation is choosing a renewal advanced payment option that keeps your Certificate of Documentation up to date with your mortgage. This option can be utilized to renew your documentation up to five years into the future, giving you peace of mind.
Ship Mortgage History
A preferred ship mortgage is the kind of mortgage that is recorded against a vessel that has been federally documented with the United States Coast Guard. There is a key reason why the word preferred is used, and that is due to the fact that it is the first lien preferred in any event that the liens need to be claimed. The only exception to this rule is a mechanical lien that might have already been in place before the granting of the mortgage, salvage or the salary of the crew.
If you would like to benefit from some professional assistance when filling out your own relevant paperwork relating to your vessel ownership, then look no further than the help that can be gained at the US Vessel Registrar. We specialize in the timely processing of all vessel-related documentation, taking the stress away from the application process for you. We very much look forward to being able to help you when you need some guidance and checking on your various documentation including anything related to a preferred mortgage.