Can a bank repossess a boat if the payments are broughtt current?

Short answer is yes.

Here's the thing. When you buy a boat or anything else on credit, you are not actually buying the property, you are buying a contract. The property only secures the contract (that is, it can be taken--repossessed--if that contract is broken). When you default (fail to pay) the contract is broken, no matter if you were late by only one day. Once the contract is broken, the penalties in the contract are enforceable. The most common penalty is repossession. If you pay current and sign a new agreement with the creditor, you may be permitted to keep the property (the boat) that secured the first contract. What you are doing is reaffirming. You are making a new promise.

Most lenders will not begin the penalties phase of a contract until 60-90 days past due. Some primary lenders, like Chase for instance, may begin repossessions within a week of the missed payment. Once they take though, they are not obligated to give it back. they are obligated to sell it and apply the payment toward the debt. If they choose to sell it back to you (reaffirm), that is their choice to make. It is usually easier for the lender too, because when they reaffirm, they will demand all of your current information to make a second repossession easier, and the attachment of assets much simpler.