After doing repo’s for so many years you begin to realize the chain of events leading up to repossession and what they might let go of first. Allot of times it begins with one asset and ends with another much more personal asset.
It’s a kind of the circle of repossession, the business starts losing money like a funnel, there is a balance due or a debt on everything so the debtor has to think, should he pay the car first or the yacht, while not always thinking rationally, almost always they let the yacht go before the car. While a person may be attached to one thing much more than the other, in this scenario there are also many factors that should take place. Think about it, if you put over $100,000 down on a yacht and it has equity after paying it for so many years but the Maserati car is upside down and the payment amounts are similar just a longer term on the yacht. Logic says to let the Maserati go if need be and try to sell the yacht to save some of the equity that will surely be lost once the bank starts adding repossession costs, investigation costs, transport, storage, auction and remarketing fees, you can just say goodbye to any equity you might have had previously.
Toys are easier to repossess typically
When dealing with someones way to work, someones house or a persons lively hood, it makes a big difference in a repossession scenario. The violence factors shoot up when dealing with someones way to work or there means to do work. For this reason it is important to understand what you are actually doing and take caution highly. Taking someones yacht that they occasionally go out for joy rides with to celebrate deals made at the office is simple in comparison to taking Jimmy’s car that he needs to get to work 30 miles away in order to feed his kids. Yes, we all know well Jimmy shouldn’t have gotten the loan he got to begin with and this car was destined to go into repo with those payments, but it wasn’t until his hours were cut due to the affordable care act that he got into trouble. While not everyone is alike, there is a much higher chance in a situation like this you may be met with a violent welcome. With a yacht, the person may not have even seen this thing for months, 8 out of 10 times will not even be close to where it is docked and will also very likely be upside down in equity.
On the news you don’t typically see “repoman taking yacht or plane was shot and killed during the repo attempt.” Perhaps its the fact that most people with the ability to own a million dollar yacht are more likely to be professional and less inclined to become violent, while it does happen, it is just rare.
Toys that earn money for a company
Another situation that comes around often is a plane or a yacht is used as the only means to make money for the company. Like an air school unable to make payments due to a down economy. When you take the plane, you are essentially not just taking the plane, you are forcing them out of business. In that scenario it might be easier to take a persons car then the business itself.
Houseboats or people living in RV’s
I have found that many times the yacht I was taking had someone living on board. Whether it be from a recent divorce and he got thrown out of the house or bought the boat knowing that he would be living on it. In this situation the yacht is no longer the toy, it is the residence so you are the person that will put the debtor in the street. What about the old couple living in the RV that only has 6 months to go until it’s paid off but suddenly ran into a medical emergency leaving them behind.
In the repossession field, it’s not all about taking the toys, its about sometimes taking peoples lively hoods, their means to make money or even their living quarters. When it comes to the toys that are actually toys, they are usually in the front line to get picked up and rightfully so.