Repo and Foreclosure Boats

[fullafrisky]

Has anyone had much experience with aquiring "repo'ed" or "bank owned" forclosure boats.

Seems like there must be a way to get some great boats which are owned by banks who certainly don't want them on their portfolios.

[Zanshin]

I was looking into a boat as part of a bankruptcy and finally opted out, since I could do a survey and meet the asking price, then the court could come around and give the boat to someone (who didn't have to pay for the survey) offering $1 more. I think the term they used was "overbid". I don't know if that would really happen, but I didn't like the idea of having a 3rd party able to decline a bid that was previously agreed upon.

[sandy daugherty]

A lot of them got there via huricane. But banks are no longer in the business of losing money, so they make a practice of knowing what they can get for these orphans. Beware the good deal.

[knottybuoyz]

You also have to be somewhat careful of these boats if the PO had known it was going to be repo'd, they would have put off most if not all maintenance and drove the sh*t out of it once the writing was on the wall. I've read some horror stories where this has lead to major repair bills for hidden damage caused by deferred maintenance. A good survey is always the best course of action. Clear title is again the other concern.

[Randyonr3]

There is an unseen problem on many of these boat, in the terms of the agreement when purchased is a fine line that stated that you will pay ALL fees due the state for past liens on the boat or past owners of the boat..
I went to a lien sail at a marina a couple years back and found that the boat in question had past money due for taxes, and the city had placed a lien on the boat for unpaid bills the prior owner had with the city. you could buy the boat but the liens went with the regestration and whoever bought it was resposnsable....

[Southern Star]

I purchased a boat that had been repossessed by a bank and was quite happy with the entire transaction. The bank was required, as part of the offer, to provide a clear title (including paying of storage and mechanics liens) and everything necessary in order to transfer the title except, of course, for the paperwork that I was required to file and the taxes/fees invovled in the transfer. A broker was handling the sale and I insisted upon making the offer time limited so that they did not drag their heels excessively.

As to the condition of the boat - cosmetically it was a disaster, and the bank would no doubt have done better if they had expended a little money on a clean-up and some basic repairs. That being said, since it likely scared off many people from bidding, I ended up getting the boat for a significant reduction.

As to hidden defects, I suspect that it is no different than buying any used boat - buyer beware. Know what you are looking for and, unless you are extremely experienced in the particular vessel and in repairs/maintenance/rebuilding, hire a surveyor.

Brad

[Pblais]

You should not need to worry about being stuck with back taxes since you they can't sell the title without it being clear first. If you could folks would sell a boat twice or more.

In a tax sale the price includes the back taxes so it sounds a little different. It also happens that way if the boat has a loan. You pay the seller and they pay the bank then you get the title. The contract calls for clear title. A broker or other third party usually disburses the money so it works smoothly.

It's just another used boat. The bank is motivated but not stupid. They generally accept or reject and you have to take all the risk about the condition.

[TaoJones]

From Newsweek Magazine, "Why It's Worse Than You Think," comes the following:

"It's not all doom and gloom. Businesses that thrive on a weak dollar are holding up nicely. 'In fact many sectors are benefiting from strong growth overseas, including high-tech, capital goods, chemical and other raw materials, aircraft,' says Nariman Behravesh, chief economist at Global Insight. Bob Toney, president of Ft. Lauderdale, Fla.-based National Liquidators, which auctions repossessed boats and yachts, has doubled his staff to 78 employees to pick up around 120 boats a month. 'Two years ago, we had 200 cases in our inventory and now we have 610,' he says."

For the entire report, go to:

The Economy: Why It’s Worse Than You Think | Newsweek Inside Business | Newsweek.com

And, if you're curious, here's a link to National Liquidators: Repo Boats & Luxury Yachts For Sale - Boat Liquidators - Yacht Financing

TaoJones

[Maren]

Originally Posted by TaoJones

And, if you're curious, here's a link to National Liquidators: Repo Boats & Luxury Yachts For Sale - Boat Liquidators - Yacht Financing

Originally Posted by TaoJones

And, if you're curious, here's a link to National Liquidators: Repo Boats & Luxury Yachts For Sale - Boat Liquidators - Yacht FinancingTaoJones

I glanced through the list. The boats are mostly motor although I also noticed a Beneteau Oceanus going for something $79,000.

I can't really say that I am all that surprised about the motor boats being so common since there are a lot more of them. Rising fuel costs would also depress the value. Then the emotions kick in and next you know -- repossession.

[Connemara]

Interestingly, they are almost all powerboats. I guess sailors are better at paying the bills?

Connemara

[Randyonr3]

Not to dis-agree with you Paul, but they do..... Berkley Marina sell the boats on a lien sail , as many marinas here in California do, that have been abandon or attached due to non payment, and responsebility is up to you to make sure its clear..
From experance, I purchased a boat from a dismantaler in Folsom California, with clear paper on the boat, and all was good, until I tried to get to get it regestered.
It was a Catalina 22 in 1970s vintage.. DMV stated there was an attachment on the boat from Eldorado County.. when calling the county they stated the taxes were not paied for 8 years... after the first year, the penalty was 100% plus the tax, and the second, compounded, and the third and so on...
I purchased the boat for 1,200 dollars and recieved a proper bill of sale but the hold was over 11 thousand to free the regestration.
I ended up buying another "Trashed" C22 and between the two, built one boat and used the title off the trashed boat.. I turned the paper-work into DMV on the other boat and told them I junked the boat.......

[2Hulls]

Originally Posted by fullafrisky

Has anyone had much experience with aquiring "repo'ed" or "bank owned" forclosure boats.

You can probably find a lot of bass boats this way........

[Randyonr3]

The story I've placed is not an oddity in California, and not sure if other states follow in suit.
Not trying to change the subject but out here, DMV is worse than the IRS..
I currently own a 1885 VW Kit Car (with an MG body) that was built for the expo at the San Francisco Airport to be on display.. I bought the car from a repetable dealer after the show and it had plates on the car and I was given a "pink-slip" for ownership..
DMV will issue an ownership certificate and plates BUT will not regester the car for the street without a smoug certificate. so I get no tag..The car will never pass the equeptment part of the smog test. I've tried for the past 10 years to find a way around it without sucess, including having it seen by a state refferee, so the car, a cute little MG sets in storage without the right to be driven.. Many cars over 20 years old are exempt of the smog regs but if its special construction, your stuck for life.....
If buying a boat from anyone, check the background and paperwork to make sure its clear and I would also suggest that the sale carries a clause that ensures that the seller is held responsable for any and all past depts and leans due, including taxes.........

[TaoJones]

Originally Posted by Randyonr3

The story I've placed is not an oddity in California, and not sure if other states follow in suit.
Not trying to change the subject but out here, DMV is worse than the IRS..
I currently own a 1885 VW Kit Car (with an MG body) that was built for the expo at the San Francisco Airport to be on display.. I bought the car from a repetable dealer after the show and it had plates on the car and I was given a "pink-slip" for ownership..
DMV will issue an ownership certificate and plates BUT will not regester the car for the street without a smoug certificate. so I get no tag..The car will never pass the equeptment part of the smog test. I've tried for the past 10 years to find a way around it without sucess, including having it seen by a state refferee, so the car, a cute little MG sets in storage without the right to be driven.. Many cars over 20 years old are exempt of the smog regs but if its special construction, your stuck for life.....
If buying a boat from anyone, check the background and paperwork to make sure its clear and I would also suggest that the sale carries a clause that ensures that the seller is held responsable for any and all past depts and leans due, including taxes.........

Geeze, I'd think an 1885 VW would be grandfathered out from under the California smog rules.

TaoJones

[Randyonr3]

Tao, I would have thought so also but not under special construction.......