Can You Buy Repo Boats Direct From The Bank?

By Ed M. Tennison

If you've looked at any of the more visiteed boat classified sites it's not uncommon anymore to see up to 25% of the sites inventory displayed as 'bank owned' i.e bank repo boats. I personally like to peruse bass boats up for auction but all types of boats are liquidated. Repo auctions are significantly more evident with performance type watercraft. The question that frequently gets thrown around in boating blogs and forums is whether financial institutions and credit unions are desperate enough to accept serious offers 15 to 25% of their asking price. Anything less than that and you might not even get a bank to respond.

Assuming you are presenting an all cash offer for a particular repo boat. And your offer is reasonable you can expect the bank to seriously consider your offer and either counter your offer or based on how long the lender has been attempting to remarket the boat repo -- accept it outright.

The time it would take the larger banks to deal and negotiate each specific offer on one of their repossessed boats would simply be inefficient for them to manage. After all larger banks will be dealing with hundreds repossessed assets at any given time. Don't get me wrong lenders will have departments that will communicate with you on where they list their repos. Some are very open and will point you to where you can view their inventory of boat repos. But for the most part don't waste your time. Instead just use Boat Auctions Direct as they've already done a lot of the grunt work already so you're not wasting your time visiting each loan officer to see if they do or not.

The hard truth of striking up a deal with a bank on one of their repos is that often most lenders will not deal directly with the general public. They opt instead to go through experienced brokers and repo houses or liquidation companies for convenience sake. It's more systematized and even more important enables them to focus with their core service: lending. Some banks have so many vessels to manage that they are secuing fleet insurance policies

Understand that auction houses have a working agreement established with local and regional banks or credit unions. Often the terms are already set as to how much liquidation companies profit from the sale. The advantage for the lender is they are able to make use of a dependable name for marketing as well as rely upon their knowledge and expertise. And even more utilize their storage lot to efficiently re-market the boats. Something that's practically impossible for a bank to manage. The bank goal is to try to re-claim at least the defaulted loan amount once the hammer drops to end the boat auction.

A common question is whether or not banks offer a list of bank repo boats heading to auction? This may be true for smaller sized community finance institutions or credit unions but most often the larger lending institutions are contracted with local or regional repo outfits or repo boat liquidation outfits to proficiently seize and remarket their collateral. In the latter case of smaller banks you might make some headway if you ask to speak to the bank officer in charge of "special assets" assuming they don't already have a dedicated page for liquidating non-performing assets on their main website.

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