What is the procedure for collecting on a maritime lien?
A maritime lien may only be foreclosed, or “executed,” by the filing of an admiralty action in federal court by one or more lien claimants. The vessel is then arrested by a deputy marshal, and held in custody pending further developments. The custodian is usually a private vendor, because the marshals charges for custody are prohibitive. Other lien claimants may enter the action. If any of the lien claimants prove entitlement to foreclose and payment, then the court will order the vessel sold, usually at public auction conducted by the marshal. Successful lien claimants will then be paid from sale proceeds in order of priority. Any remaining balance may be paid to the owner. Visit the Vessel Arrest Information page in this site for additional information. Regrettably, vessels usually bring less, and often much less, than their fair market value at a foreclosure sale. But a lien claimant may be able to purchase the vessel using the credit of its claim, avoiding any outlay of additional
