When someone can’t make the payments on a loan or mortgage then the lender – often a bank – has to be able to get back the money they’ve lost somehow. Often this is accomplished by repossessing the home or car to sell at an auction. For banks it’s more important to get the majority of their money back quickly than it is to wait months to get the best price which is why you can often get discounts at bank repo auctions.

The exact price of the house depends on a number of different factors including who is at the auction and where the auction is held. You need to be willing to pull out of the bidding if it gets to a certain level because the competitiveness of the bidding is often down to luck and it’s hard to tell what it’s going to like beforehand. Set a strict upper ceiling to you bidding that you won’t cross no matter what so you can avoid the problems that go along with overbidding.

There are some things to keep in mind if you’re buying from an auction though. First of all, if you have the highest bid and that hammer comes down then you’ll have to pay the deposit on the item – often 10% when it comes to houses – immediately. Because of this you need to be sure you have the funds available. Also, unlike buying a house from an estate agent  at an auction once you’ve won you can be certain that the house is yours and won’t be open to better bids.

As you don’t get a second chance when you’re buying bank repo homes from an auction it’s important that you thoroughly inspect the house before making the decision to bid on it.  The same goes for any other items such as bank repo cars and boats.  You definitely don’t want to be faced with any unexpected surprised when you move in!

However, what is a horrible event for the original boat owner can be a window of opportunity for anyone looking to buy a new boat. Repo boats are often sold at a vastly discounted price to ensure a quick sale which makes them attractive to anyone looking to get a boat. In many cases a bank repo will be sold for around 70% of its true value. You might wonder why banks sell boats for this price when they could get more money for it. The simple reason is that they’re more interested in getting back the loan quickly and easily than they are spending a lot of time trying to get the maximum price for the item.

Finding repo auctions can be quite tricky though. Although the competition is less for boats than it is for bank repo cars there are less boats available which means you’ll be competing with a number of other people in most cases. Basic knowledge of how auctions work is essential if you’re to get a good deal and not waste your money.

For most people the most important thing to remember when at repo auctions is not to panic. When there’s a lot of people bidding on an item you really want to buy it can be hard to remember your budget but it’s vital that you do otherwise you could be in for a shock at the end of the auction! You also need to examine the boat before you buy to check that it’s in working condition and won’t cost a lot to repair before it can be used. If possible ask an expert to view the boat with you to check that there is nothing seriously wrong with it, you’ll also do well to do your research ahead of time, you can find more information about bank repo boats and other repo tips and information here.  It’s not always easy to tell what condition a boat is in though so make sure you’re careful about which one you bid on.

Buying boats at auction is similar to purchasing repossessed cars for sale, you’ll find many experienced dealers attend that know what they’re looking for, if you do your research ahead of time you’ll be able to put yourself on more of an even playing field.  Failing the auction experience you can always try finding a repo depot, most stock anything from cars and watercraft all the way aircraft.

Shelter Before Pleasure

Before surrendering their vehicles or homes most boat owners have elected to default on their boat loans. This has resulted in a glut of bank repo boats. Virtually every bank has repo boats for sale, often for as much as 40% to 60% off the boats book value.

For the boat buyer with cash or ready financing it is truly a buyers market.  The consumer looking for a boat may now be able to buy a much larger, more luxurious one than expected at a public boat repo auction. Since lenders have no use for the items themselves, repossessed marine vehicles are selling at surprisingly low prices.

Since they are not retailers, but in the business of financing properties, lender are often willing to settle for pennies on the dollar for repossessed boats. They simply want to sell their non-performing asset as soon as possible, however much it is discounted, so the cash can start working for them again.

Boat Auctions

Boat repo auctions are listed in your local newspaper, boating magazines or on the Internet. Prospective buyers can get a listing of current and upcoming repossessed boats coming to market, the date and time of each auction by phone, email, of in person if the auction facility is local.  Having a marine survey done on the boat or making your own vessel inspection including starting the motor and/or taking the boat into the water can be arranged in advance.

Auction terms are listed in the Official Notice of Sale and a Deputy U.S. Marshal usually officiates. Prospective bidders must pre-register, have a certified deposit, usually 10%, on hand and be prepared to consummate the sale in a timely manner as specified in the official notice.  Repo boat auctions offer great deals to the professional buying boat repos for a quick turn-around sale, the bidder looking for a long-term investment or the pleasure boat seeker just wanting to save a few dollars. Becoming knowledgeable about repossessed boat auctions can result in tremendous savings for all.

Perusing Online websites that specialize in the sale and auction of boat repos is an extremely efficient method of finding local auctions or auctions that will be disposing of certain types of boats. As you can see there are more than home foreclosures and repo cars, the current flood of boat auctions is a window of opportunity for the wise marine vessel shopper.

Unfortunately as the economy continues to weaken, bank repos continue to rise, at last report it has been said that the banks are holding off releasing 1.2 million house foreclosures and bank repo cars in fear that it will drive property values even lower. There has also been talk that hedge funds are now working with the banks and cherry picking the best deals to profit from them in the future and leaving the lesser desirable ones for the general public.  On a positive note for the rest of us, it is unlikely any fund manager would be bothered with repossessed cars for sale, that is of course unless it is a fine collector car or high end Porsche, Lamborghini or the like.