Boat repossession has become more and more frequent nowadays than in the past. Back in time, buying a boat would be something achieved by the wealthy in order to fill their spare time. Today with such ease in obtaining loans, buying a boat has finally become a practice not only of the wealthy but also of those belonging to middle class.
More and more repossession companies perform boat repossession as more and more boat owners end up in default loans. The companies have hired and trained their employees to track and collect the vessels from backyards, garages, marinas, etc. and bring them to the storage place of the company from where it would be sent to the next owner after the public auction. When the initial boat owner and credit consumer realizes that he can no longer pay for the boat, and thus is unable to return the borrowed money to the creditor, he thinks a solution would be to simply stop paying. He does not realize it but the situation becomes really strained and he finally has the shock of coming home and not finding his sweet possessed good where he left it. It is a shock and a trauma, and since the cost of a boat, be it a sail or a speed one, is so much higher than that of a car, the consumer is unable to get his boat back. Boat repossession is the measure of the creditor to get his money back, and if warnings and grace periods have not convinced the debtor that the lender needs his money, then the repossession will do it.
After boat repossession, the next step is the auction. Here anyone can imagine that the price that will be obtained for the boat will actually be much below its real value than if it were sold on the market. In case the auction money does not cover the whole amount the consumer owes to the creditor, then the lender has the right to file suit and ask for a deficiency judgment. The deficiency judgment represents the difference between the money obtained for the boat in auction after the after the boat repossession and the amount of money needed to clear the loan account. And the person having to cover the deficiency judgment is once again the debtor.
In the case of a car, the deficiency judgment, just like the full value of a car, would not be that much compared to the sum of money you need you need in case of a boat. But since we are all going on loan sprees simply because getting a loan has become a piece of cake, we do not realize how difficult it is to stick with the monthly payments if they are very high and how easy we can end up in the situation of facing boat repossession.