BUYING A BANK REPOSSESSION PROPERTY IN SPAIN

Oct

BUYING A BANK REPOSSESSION PROPERTY IN SPAIN – DONE THE RIGHT WAY!

As with buying a newbuild or resale property in Spain buying a bank repossession can be straightforward and hassle free. Recent months have seen a surge in the amount of bank repossessions being sold throughout Spain the main reason being their affordability.

During the property boom many of the major banks were somewhat generous in their lending. With property prices and bank valuations being high the banks were willing to lend up to 110% meaning buyers could purchase a property on the Costa Blanca with little or no deposit. When the recession hit, the banks were the ones who suffered the most. Many British nationals owning a second home in Spain also felt the pinch in the exchange rate meaning monthly repayments became unfordable. This fact combined with the drop in property prices also meant many owners fell into negative equity and had no option but to default on their mortgage. The problem the banks then had is that the inflated debt on the properties and their true market value meant that they had a mass of properties on their books which they couldn’t sell. To try and clear up the bad-debt many banks took aggressive action to try and recoup some of their losses, after all the banks make no money on a defaulted mortgage. Many banks set up their own real-estate departments to try and shift some of the bad debt. Here at Casas Manuel we have numerous collaborations with many of the high street banks meaning we can offer their properties for sale.

There has been many successful campaigns whereby the banks have reduced their property prices by up to 60%!! Needless to say that these repossessed properties were snapped up in an instant. Many investors along with savvy property hunters secured these properties at a fraction of their true market value. This has certainly help kick start things in the property market but it has also helped generate more work in many local sectors – more business for solicitors and builders, furniture and electrical shops etc.

There has always been somewhat of a taboo with buying a bank repossession property in Spain, the main one being that the new owners would be responsible for previous debts – all of which tend to lean more towards fiction than fact. Done through the correct channels buying a repossession can be straightforward and hassle free. When a bank come to repossess a property they then become the official owner of that property meaning that any previous mortgages/debts will have been dissolved. If there is a community and there are debts outstanding the bank are responsible to clear this as with any possible Suma (council tax) arrears. As with all property purchases we highly advise that you employ the services of a local solicitor. Not only will they ensure that all paperwork is in order they will help with arranging for the connection of utilities.

Please keep you our out on our site for future repossession campaigns, likewise if you would like to send us your property requirements (repossession or resale) we will be more than happy to assist you in your property search. We currently have a diverse range of well-priced new and resale properties for sale throughout the Costa Blanca South including the areas of Algorfa, Benijofar, Benimar, Ciudad Quesada, Daya Vieja, Daya Nueva, Los Montesinos, Formentera, Guardamar Del Segura, La Zenia, Caboroig and surrounding areas.

Casas Manuel are also pleased to announce that we will soon be opening our new sales office in La Zenia, Orihuela Costa. If you are looking at buying or selling a property in La Zenia, Playa Flamenca, Villamartin, Los Dolses, Los Altos, and the surrounding areas then contact us today.

Casas Manuel – We’re here to help turn your dream into a reality!