Banks repossess and resell or auction boats if their owners fail to pay for them. Vendors label these vehicles as "repo" or "foreclosed" to signal cheaper prices.
Private individuals and companies that specialize in recovery and liquidation purchase boats from bank foreclosure sales. Potential buyers must exercise caution when they consider buying or bidding on repossessed or foreclosed boats. The vessels are typically used, and their specific condition depends on the previous owner. Many people do not properly maintain their boats before they are seized by a bank or lender, and resellers promote an "as is" policy that absolves them of responsibility for existing damage.