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Advice on buying a repossessed boat

Discussion in 'General Yachting Discussion' started by NYCAP123, Sep 5, 2012.

  1. NYCAP123

    NYCAP123 Senior Member

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    A client has light interest in buying a repossed boat, and I'd like to get advice from anyone who's been through the process. At this stage I'm not even sure it's being auctioned as there's an asking price listed. I know it's kind of a pig in a poke, but can anybody tell me how thoroughly you're allowed to have them checked over, what kind of offers (on a decent boat) would be appropriate, how to locate the previous owner (it doesn't show up on the vessel documentation site by name), and any other advice about the process anybody can think of. Thanks.
  2. Yachtjocky

    Yachtjocky Senior Member

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    repo's

    if they are bank repo'd you can do a full survey, repo companies normally put an asking price but then let the bids come in to drive the price up.

    If the boat has been seized by the US marshalls for the bank or Fed's they some times limit the inspection to at the dock only and you have to be accompained all of the time that you are onboard.

    They give you a veiwing day and then an auction day to be held on the court house steps or in certain cases on board or at the facility.

    The bank repo'd boats are only put up for sale after the bank has made sure there is a clear title so at the end of the day your client can inspect it, survey it, sea trial it and have the engines checked out all like a normal deal. There are alot of add on fee's down here that the repo yards add on which can add another 1000 to 1500.

    Hope this helps, I would still advise that a documentation company is used as in all deals down here.

    So much for your retirement ? (good to see you posting) :cool:
  3. NYCAP123

    NYCAP123 Senior Member

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    Good info. Thanks. I keep trying to get the hang of retirement, but the siren song is hard to resist. So I just work the right boats and for the right people. I monitor YF frequently so I don't get too dumb, but have been trying to leave room for other posters to catch up.:)
  4. Capt J

    Capt J Senior Member

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    In addition to this good info, I'll add. If the batteries are too poor to turn the motors over, neither the repo company nor the bank is usually going to pay to have them changed so you can survey the engines, at least with a lot of repo companies.

    Dealing directly with the broker at the repo place responsible for that particular boat will get you the best deal. Expect the worse when it comes to repairs because 9 1/2 times out of 10, the previous owner stopped maintaining it for at least a year before it got repo'ed, it's been sitting around for another 6 months to a year with nobody maintaining it while the paperwork and nonsense has been dealt with, and now you're looking at it. Generally all of the banks have the boat surveyed when the boat comes in to get a condition and value for the banks books, and the listing broker may show you the survey if you ask.

    Also the boats are as-is where-is, so if you discover a major issue on survey, the bank usually will not come down in price.
  5. Maxwell

    Maxwell Senior Member

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    The boat that we purchased prior to our current was distressed. It was being represented for the bank by a marina. For us the deal went similar to any other boat that we had purchased. Visual inspection, offer, survey, sea trial etc. The few small issues (some crazing on the hoses etc that we deemed "safety issues") were covered by the bank. Obviously the hull and motor survey were extremely thorough (as they should be anyway) as you have to imagine that if the owner could not afford the payments they probably could not afford the maintenance either. At the end of the day I think it comes down to the specific boat. In this case it appeared the owner did take care of it however we did come across a few where the owner seemingly sabotaged the boat knowing it was going to be taken away.

    As far as contacting the previous owner it might be tough. Sure we found out who it was and were able to get an idea of where they cruised based on his address however I was apprehensive to contact him as I'm sure that he would not be willing to talk to the person who in his eyes was running away his pride and joy.

    max
  6. scott49

    scott49 Senior Member

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    My boat that I purchased from the bank was a voluntary repo. So the owner had kept most item up. The bank was very open to offers as they did not want to pay for all the expense of keeping a yacht. They were also fixing some items before I even started to look at it. Doors,compressor, Toilets, Etc.
    I would say all banks and repo yards are different, never hurts to ask them, what are they willing to do to sell the boat to you.
  7. ArielM

    ArielM Senior Member

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    I think buying disstressed boats in this economy is a great way to save money provided you chose the right boat and are diligent in your research. whether the boat is being sold by a private owner or the bank i dont see why there should be anymore research/survey/sea trial.

    It is true that distressed boats are neglected but so are 70% of boats which sit in the marina. At least when you buy from a bank you see the boat in its distressed state as opposed to the private owner who has put "band aides" to cover up all the known problems.

    With any boat purchase, a complete hull survey, mechanical survey and sea trial should be completed. a check with the coast guard should also be completed to insure there are no liens on the vessel and you are getting a clear title.
  8. Capt J

    Capt J Senior Member

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    It depends, I work for one broker that does all of the key bank repo's, and the broker maintains and fixes things (within reason). However, there is a large repo yard in Fort Lauderdale, and I know they do absolutely next to nothing on the boats the entire time they sit there, fix nothing, and are pretty much here it is, survey it and take it or leave it.
  9. Bamboo

    Bamboo Senior Member

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    Is there a site for these boats? Where does one find them?
  10. Capt J

    Capt J Senior Member

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    National Liquidators is one place that only deals in repo's and has lots of them.
  11. Knothead

    Knothead New Member

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    I purchased my boat as a bank repo back in Dec, it followed through just like any other sale. On survey found a bad tank, bank payed to install new tank and labor plus I cut a sizable amount off the bank asking price. This was done through a broker that the bank hired. I got an incredible deal on the boat and the previous owner did maintain the boat and only thing needed after the tank was a bottom job, zincs and an oil change(due to no history on the motors. I had a DD mechanic do a through inspection and compression check all good. Best part is the Admiral is very happy and I am just a hired hand now. It's her boat I am just allowed to run it. :D