Bank repossessions for sale in Spain
- Whole list of sites to search Bank repossessions in Spain
- The bank repossession process in Spain
- Before the bank starts the repossession process
- The foreclosure process in Spain
- The property already repossessed by the bank in Spain
- Tips buying repossessions in Spain
Nowadays the banks are the owners of a big part of the property for sale in Spain. These repossessed houses come from developers' bankruptcies and people that can not afford the payment of their mortgages.
The property repossessed is a product highly sought after by experienced investors in the property market in Spain. But anyone can buy a bank repossession in Spain.
If you are looking for a bargain is a good option to take a look to the repossessed properties owned by the bank. But be careful, all that glitters is not gold.
Here it is the list of the bank repossessions in Spain:
The bank repossession process in Spain
Before the bank starts the repossession process
The foreclosure process in Spain, that ends with the house repossessed by the bank, begins when the mortgage debtor has fallen in arrears after several months without paying his monthly mortgage obligation.
The repossession by the bank follows a legal procedure that involves high costs for the debtor. Usually, once legal proceedings are begun, to the debt is added 30% more as late payment interest, legal costs and expenses.
In this period, before the procedure for repossession by the bank begins, is a good time to negotiate directly with the owner the purchase of the property, as he will be interested in selling the house and save as much as he can of his investment and credit.
The foreclosure process in Spain
Once the process of foreclosure is started, the usual path taken before the housing bubble burst in Spain, was the auction of property seized. In these auctions anyone can bid to acquire the property. The problem in recent times has been the lack of buyers in judicial auctions, which made the award prices were extremely low to meet the amounts owed by debtors on their mortgages. (Learn more about the mortgages in Spain)
This issue has led banks in Spain to begin with the repossession property by the way of the Assignment in payment. So, the bank before filing a foreclose suit, allows the defaulter to offer his/her properties to satisfy the total debt instead of starting the legal process.
The property already repossessed by the bank in Spain
Once the house is repossessed by the bank, it will try to sell it as soon as possible to avoid the costs linked to owning a property in Spain. The bank (generally) will consider any reasonable offer. Besides, buying a bank repossession in Spain is the best way to get a mortgage in the best terms. The banks are looking forward to get rid of these bargains and they are very open minded to listen your offer and give you the mortgage.
But, as said above, be careful. Commonly when you ask for a mortgage to the bank, this one becomes an ally to check that everything is in order around the property you're buying, but not in these cases. There are possible traps hidden like community of owners debts, local taxes unpaid, squatters in the property, ghost neighborhoods... It's a must checking the property.
Tips buying Bank repossessIONS in Spain
- Once you have found a property that interests you, remember that foreclosed properties are sold under the principle of "caveat emptor", therefore, is advisable inspect the property to evaluate its physical condition and determine possible repairs and costs.
- Obtain sales prices of comparable properties in the area through a real estate agent in Spain to determine how much should be your offer. Being a bank repossession for sale does not mean that its price is cheaper than others in the same area. As we saw, sometimes, finding a seller who wants to save part of his investment before the foreclosure, can give us a more competitive price.
- We must do a thorough check of charges and debts: Most burdens appear in the Land Registry in Spain, but there are other debts that do not have to appear there.
- The seller is the bank. They have a crowd of lawyers that know every single law in Spain and the tricks to put the deal in their favor. You MUST HIRE A LAWYER. The complexity of this kind of purchases, looking at the counterpart and to the legal complications that the repossessed property has, makes necessary to hire a lawyer specialized and experienced in property in Spain. His fee is going to be around 1%-1,5% of the price. Nothing compared with the problems you will save. Besides, If you buy a bank repossession in Spain through us, we have agreements with some of the banks listed above, and our legal fees will be included in the price.
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