With the values in the real estate market still declining, there is still a chance to get a great deal on bank repo boats. Boat foreclosures turn into bank repos. Today’s bank repo boats are no longer the old, dilapidated boats that people with bad credit lose to a lender, but rather, a lot of them are repossessed from a dealer bankruptcy and are brand-new. The only difference is, you can now bid on a boat and buy it directly from the bank, rather than having to pay retail for it. In addition, in today’s market, there are a lot of people that have lost a lot of equity in their real estate portfolio. As a result, a lot of them are not able to afford the luxuries that they could afford three and four years ago. A lot of wealthy people are also losing their boats because they are no longer able to make the payment and maintain the the kind of lifestyle that they were previously used to.
These bank repo boats are a great opportunity. There really are a lot of boats that are being sold for 60 to 70% of their new price. If they are being sold quickly at an auction to the highest bidder, you have an opportunity to save more money buying a bank repo boat than you would if you were buying it from a private party seller. Below are some great ways to find bank repo boats.
Where to Find Bank Repo Boats
First of all, contact local boat dealers in your area, ask them if they are selling any bank repossessed boats, or if they know where any foreclosed boats are being sold. Also, you may want to check your local newspaper or the classified section of boating magazine. These will frequently have ads for bank repossessed boats for sale. Another way to shop for a bank repossessed boat is online, however, I think you should search for local auction companies rather than search for the boats themselves. You want to avoid scams, and never bid on a boat that you don’t see with your own eyes. You want to avoid bidding on boats that are more than 200 miles away from your home. After all less than 1% of boat sale at an auction to people that are more than 200 miles away.
This video shows how to bid on Repo Boats
The third way you can find bank repo boats for sale is to contact lending institutions. To banks and credit unions, these are referred to as “ nonperforming assets”. Banks and other lending institutions will want to sell these as quickly as possible so they can recoup some of the money that they have lost when they lent people money to buy the boat in the first place.
Some people think that it is unjust or unethical to buy a boat that had been repossessed. They think that buying a boat repossession is taking advantage of another person. However, most of the time, you are only buying a boat from the lender. They are giving you a discount, to purchase the boat quickly. You are not doing any harm to any other person, because there is no other person involved in this transaction. On the contrary, you are helping the bank to stay in business and allowing them to lend more money to other people to buy a boat. Read more...
Buying boat foreclosures allow you to save a lot of money on one of the biggest investments most people make. Even though some people think buying a foreclosed boat is heartless and cruel, and think you are taking advantage of some poor soul if you buy them, the truth is they are loosing the boat no matter what you do or don’t do. Buying foreclosed boats for sale can only help these people out. If you buy it when it is pre-foreclosure, you can keep them from having a foreclosure on their credit. Also, the more people that are interested in foreclosed boats, the less money the bank looses and the less likely they are to come back and try and collect the default amount owed by the original owner.
Plus if you buy a boat in pre-foreclosure, you may be able to help the owner salvage his credit and get out from an unbearable debt burden. Buying a boat from someone who can not make their payments may even save them from loosing their car or their house. (Some I know would rather keep the boat!)
Believing that buying boat foreclosure is unethical is narrow-minded and myopic for several reasons. First, when someone owes a mortgage on a boat for more than a boat is worth, they actually own negative equity. Each month they make payments on a boat + interest payments on the negative equity + payment on the depreciating value of the boat. The truth is the minu
te you fall behind on you payments, you find out you do not actually own the boat, the mortgage holder does.
From time to time, you find boat foreclosures at auctions, but not that often. This is because most lenders prefer to pay a dealer a small commission to sell them on a lot. It is quiet and convenient.
To make a lot of money buying foreclosures it takes a lot of time and effort to make the right connecctions and build the networks you need. For most people the time and patience required to build this network makes in an un-viable option. There are a few internet companies that do this and then sell you the boats
But there is still a great opportunity for the average buyer like you and me to save a bundle.
This is in the pre-foreclosure market. I love this market. They say “the two best days in a man’s life are the day he buys a boat and the day he sells it.” (or pays it off) While many people dream of owning a boat, many boat owners dream of selling theirs, either to buy a bigger boat, or to get out from under the burden of debt. For every 10 sellers you contact, 1 will be behind on their payments, and 2 will have trouble just making the payment every month. If people are behind, you can help them, either by buying the boat and short selling the bank, or the owner. You can get the price you want, and the owner can avoid foreclosure and get rid of most of their debt. However, not all preforeclosures or foreclosed boats are good. But a few of them will work out so nicely, it will be well worth it.
The main reason why boat and RV auctions are so popular, is because people like to save money. In today’s economy, cash is king, and the more of it that people can keep for themselves, the safer they will feel. Also, people have seen great devaluations in real estate and in the stock market. It is only practical that they try and capitalize on these because they have already lost a lot of money on them.
I was listening to the radio yesterday, and they said that the typical home loan-to-value ratio in America is 130%. Traditionally, this is 50 to 60%. It is really scary when you actually think about it. This means that the average American owes more on their house than their house is worth. You can’t really capitalize on low interest rates when the banks will only loan on an 80% loan-to-value if everybody who already owns a home goes way more than what the home is actually worth. The fact that real estate dropped almost 80 to 90% in value in the last three years has not helped.
Boat and RV Foreclosures
People are really interested in buying boat and RV foreclosures and also in buying bank repo RVs. They know that other people are having a hard time, because either they themselves have had a hard time, or people that they know have also been struggling. When you buy RV foreclosures from the seller, you are actually helping them out. Some people feel like you are taking advantage of these sellers, but trust me if you were in their shoes, you would want someone to buy your RV rather than go through foreclosure. After the foreclosure process occurs, a foreclosed RV becomes a bank repo RV.
Occasionally, you may be able to buy bank repo RVs directly from the bank. However, most of the time you will need to wait until these RVs go up for sale at auction. Then you will be able to bid on them against other bidders who are also trying to save money. RV auctions are great place for you to find RV and boat foreclosures, and the more of them that you go to, the better luck you will have bidding at them.
When you decide to buy a used boat rather than a new boat, you are showing that you have a high financial IQ. When people select to buy a new boat from a dealership, it is said that they lose 10% of the value the minute that they drive it off the lot, and they lose 35% of the value with in the first year. This is an extremely expensive boat to own. Even if you put down a third of the money when you buy it, you will have lost all of your down payment with in 12 months. In addition, you will have been making payments on the boat every month. Most of your payment that you have made or at least a very good chunk of it, will have gone to pay off the interest. Only a small portion of your monthly payment will actually pay down your principal.
Kelley Blue Book and NADA Value Guides
It is a very good idea to buy a boat, especially a used boat. But before you buy a boat, you are going to have to know what the bat is really worth. For this reason, a lot of people who are searching for boat values online, will search for Kelley blue book boats. They’re hoping that they will be able to find out how much they should expect to pay for a used boat for sale and which boats they think will be the best deals. Another great online RV guide you can use to search for the value of a used boat for sale is the NADA value guide. This is probably one of the biggest online blue book value guides available for boats. Even though there are literally thousands of different guides out there, the NADA is one that is commonly used by banks to help them determine how much money they can lend you on a used boat for sale.