(Interesting video reveals what a repo boats condition looks like in todays market..)
An unfortunate yet growing trend continues into 2014 is the availability of bank repo boats. Getting a buy on one these is much more accessible to the general public...especially those who can find the auctions.
The following video reveals the alarming spike in bank repossessions across the country as lenders and credit unions try to write off these "non-performing assets" as quickly as possible.
Check out these bank repo boats for sale. Their surprising condition and originating owners is a sign of what's to come:
So how does a bank repossesed boat scenario play out?
Consider the following scenario. Bob, in his zeal to buy a new boat, purchases a new, 25' Sea Ray cruiser for $50,000 after a bank approves him for a loan of $40,000. Four years later, Bob suddenly loses his job and can no longer afford to make his monthly payments to the bank. At this point Bob has only paid down $10,000 towards the principal amount.
If Bob continues in default of the loan, the banks collections manager hires out a repo outfit and repossesses Bob's four year old Sea Ray that now has a market value of $30,000 at best.
Following the repo, the bank notifies Bob that he has 10 days to pay the entire loan balance, which at the time is $30,000, or they will be forced to sell the boat.
Since Bob is unable to make his regular monthly payments he obviously is unable to pay the balance by the deadline. The bank is forced to keep and then liquidate their repo boat for $25,000 suffering a $5,000 loss.
Though unfortunate for Bob, this scenario is replayed every day in America. However, from our vantage point the above scenario is nothing short of a pure opportunity that is unfortunately born out of misfortune. Sorry, Bob.
Where To Get In On a Bank Repo Boat Auction
This kind of opportunity is all around you, yet finding such an opportunity is a matter of persistence and knowing where to look. If you have the time local paper or trade magazines are places to find bank repo auctions. Banks have a legal obligation to the previous owner to advertise the repossessed asset prior to auction.
Once a lenders repossessed boat, car, truck, etc. hits the auction block its up for bid and is being let go for as little as 60-70% of the vessels current book value.
Boat Auctions Direct
is a newer resource that enables members to easily get in front of bank repossessed boats and other marine auctioned assets. Unlike other auction sites these guys strictly and aggressively pinpoint marine related asset sources available for public auction.
This resource just came available at the right time. Keep in mind that if your looking to find a boat strictly via bank repo boats
then you may be limiting your options--especially in this economy. After all the goal is simply finding a deeply discounted boat.
BoatAuctionsDirect.com is simple. Members gain access to a website that aggregates a focused database of online, bank, state and local auctions (both sealed bid or absolute-no-reserve auctions) specializing in the liquidation of boats, pwc's, atv's, wave runners, yachts, rv's, and other marine related parts and accessories.
As a member of possibly ever auction site available, my experience and humble opinion is that Boat Auctions Direct may be the most legitimate auction database online. By that I mean they maintain a deeper auction database with a lot less competition and junk related assets.
Bigger auction sites...such as Ebay are full of over bid assets. Ebay's great, but Ebay is also consistently among the top 10 most popular sites online! Competition is fierce so it's typically harder to find a great deal...unless your saavy in how you search.
Here's a word to the wise: expand your possibilities by looking into other options to finding a discounted boat. The more options available the better chance you'll find a cheaper boat faster.
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When it comes to boats, banks aren't equipped to securely hold, maintain, or liquidate boat repos for obvious reasons. Namely, it's just not their business. They will earnestly try to recoup their losses via. repo auctions, classifieds but the bottom line is that banks sell loans not repos.
Being forced to liquidate, bank repo boats present an opportunity for saavy boat buyers to buy at deep discounts. The challenge comes in finding these banks in time before they liquidate.
I've listed a free bank repo boats directory that is steadily growing as visitors include helpful links. Click the navigation bar above to reference this directory. If you represent a bank or lending institution, please feel to add that reference for our readers.