The big-boat buyer with a one-time credit blemish is not likely to get financed Normalcy is returning to the marine lending market, with one notable exception: You’re going to have trouble getting a loan for a big-boat customer whose otherwise solid credit history suffered a setback during the recession. “A foreclosure, short sale or bankruptcy is just the kiss of death right now, except maybe for that subprime lender,” says SunTrust Bank’s Don Parkhurst. Even the subprime lenders are skittish about going out on a limb for big loans, however. “Some lenders won’t finance anyone who’s had a bankruptcy or foreclosure,” says John Haymond of Medallion Bank, which deals heavily in the subprime market. “We’ll buy those all day but only up to $50,000.” Parkhurst says the number of people who suffered those onetime setbacks could represent a fairly large part of the market. The applicants tend to minimize the problem, he says. “It happened to so many people … they don’t think it’s a big deal.” The fear among lenders is that the boat loan is the first avenue of escape if things turn sour again. “It’s easy for people to walk away from boats because they don’t need them,” Haymond tells associate editor Reagan Haynes.
Published by Cruz Bay / Soundings Magazine. View All Articles.
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