Bank repossessed properties mean that the bank who financed a property, has taken the property back, either by forced sale or through an agreement with the owner. That can be a consequence of a lot of reasons; maybe the sellers are in financial distress. Distressed Sales or Bargain means that a property’s price is much lower than the actual value.
Or maybe the seller have just delinquent the payments for long time. As well, many of the new projects, the Bank have been responsible for the completion and is the responsible seller. In most of the cases Bank Repossession properties are listed far below market prices, which is why it can be a very good investment to buy directly from the banks.
The foreclosure process in Spain begins when the mortgage debtor has delinquent several monthly mortgage obligations. The repossession by the bank follows a legal procedure that involves high costs for the debtor. In mostly all the cases, once legal proceedings are begun, to the debt is added 30% more as late payment interest. This is due legal costs and expenses. During the process it may be a great idea to negotiate directly with the owners the purchase of the property. They may be interested in selling and save as much as he can of his investment and credit.
Properties already repossessed by the bank
Owning a house in Spain of course has a cost implied, like yearly property taxes, so, once the house is repossessed by the bank. It will try to sell it as soon as possible to avoid these costs; therefore the bank most likely will consider any reasonable offer. On the other hand, buying a repossessed house to the bank is the best way to get a mortgage in the best terms. The banks are always looking forward to get rid of these properties, s they are open to listen your offer and give you the mortgage.
Buying a repossessed property
Once you have found a property, then you have to start doing your homework and your research. It is highly recommended to inspect the property to evaluate its physical condition and determine possible repairs and costs. Also try to find listing prices of comparable properties in the area through a real estate agent in Spain to determine how much should be your offer. Sometimes houses repossessed by the bank won’t be cheaper than others in the same area. We also have to check on debts and charges and if they appear on the Land Registry in Spain. We highly recommend you to hire experts to help your through the process and negotiation.
In ForSaleinSapin we are experts, we will help you doing your research, paperwork and finalized the purchase. We will help you to buy the home of your dreams. Contact us!