Trip Advisor Pro

It seems no matter what you are out to buy nowadays you can find one that has been repossessed. It's no secret that the economy is a little rough, and many of those that could afford a little luxury a couple of years ago are now struggling to keep their heads above water.

There are certainly great deals to be had by purchasing a bank owned or repossessed boat. They can be obtained for virtually pennies on the dollar. However, before you go jumping in head first, it is imperative that you know what you're getting yourself into.

Boats that have returned from whence they came have not always done so in winning condition. When an owner gets notified that his boat has been tagged for repossession, often times the boat will pay a pretty heavy price. Anything that can be removed from the boat will be removed from the boat whether it holds any potential value or not. Many times, the removal process is savage at best so you can imagine the carnage that may be left behind. This, of course, is your worst-case scenario. There are boats to be had on the repo market that are in surprisingly good shape with accessories intact.

Once you have found a vessel or two that pique your interest the first line of business should be to find a reputable marine surveyor that can thoroughly assess their condition. Marine surveyors can find problems with boats that may be undetectable to an average buyer. Problems that could lead to your great undervalued find costing you a whole lot more than you bargained for down the line.

Bear in mind that the bank or whichever financial institution that has taken possession of the boat may not base their acceptance of an offer solely on the amount. Many times they will accept a lower cash offer or one that is submitted on an "as-is" basis because it is better for them in the long run. A cash offer obviously eliminates the possibility of another defaulted loan, and an "as-is" offer assures that the boat will sell even if it receives a less-than-desirable survey. A no-contingency offer is best for the bank, but may not be best for you so do your homework first.

It's also a good idea to purchase title insurance. If your target boat has been repossessed on account of the previous owner defaulting on a loan, odds are there could be outstanding balances on docking fees, maintenance fees or service fees which may have liens attached to them. Title insurance would offer you additional protection if a scenario like that popped up after purchase.

Lastly, research any warranties that may still be valid and transferable. Contact the the boat and engine manufacturers to see if any exist and make sure they haven't been voided due to maintenance policies or time restraints. A voided warranty may not be a deal breaker, but it's good information to have.

Ultimately there are some great deals to be found on the repo market if you have the patience and knowledge to sniff them out. Be sure to deal with trustworthy people that have good reputations in the business and try to resist any impulse-buying urges that you may have along the way. If you can learn to enjoy the thrill of the hunt as much as the spoils, there's a good chance that you can find a great boat at a fraction of it's market value.