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Exclusive Spanish Bank Deals – Spanish bank repossessions for cash buyers

We have Exclusive Spanish Bank Deals available only through properties247

A guide to buying bank repossessed property in Spain:

The repossession process in Spain is different to the UK:

Bank repossessions in UK – In the UK, a bank has obligations to try to resolve mortgage problems, by offering counseling and agreeing short term measures, to assist customers in difficulties. If all this fails, the bank goes to court to obtain possession of the property and the property will be put on the market. We have a selection of these bank repossessed properties in Spain.

Bank repossessions in Costa del sol Once the bank has control over the property, there are guidelines that need to be followed, to ensure that they obtain the best price possible for the repossessed property.

The amount outstanding to the bank, is the difference between the final price obtained when sold and the mortgage left outstanding including all costs. The banks in UK can then pursue an individual for any amounts not covered by the sale price achieved.

Bank repossessions in Spain – The first thing for buyers is to understand a little about the current housing market crisis in Spain and the legal system that governs the Spanish banks. Understanding will help you take advantage of the current financial crisis in the country.

Most experts say the Spanish property market peaked in June 2007. However, it didn’t become clear until the beginning of 2008 or even later, that there was a problem. The World banking crisis soon followed which brought to a head, Spain’s many properties that had bad debt.

As with all property cycles, 2009 presented the first opportunities for investors to take advantage of the crash. Now many prime location properties have changed hands at drastically reduced prices. It is countries like Spain, that witnessed massive building programs, that now have properties for sale with big discounts.

We are being misled by the press into thinking there are large amounts of property waiting to be sold.  Most are of a type that people would prefer not to buy. In the more desirable areas, discounts are far less than quoted in the international press.

Spanish banks have tried to sell off their unwanted properties themselves, they have also tried to recover most of the debt attached to them, so prices have been unrealistically high; they have not come to terms, as to the true value of the property on their balance sheets. So it was no surprise they have been largely unsuccessful. So they are now open to other ideas to sell their unwanted properties.

Things are changing and with guidelines from the Bank of Spain the banks are finally coming to terms with the fact that they will have to write off some debt when selling a property.
So, finally, as we go into 2012 there are opportunities opening for those wanting to buy Spanish bank repossessions – especially those who are cash buyers!

 Understanding the Spanish Bank repossession terms:

There are three distinct types of Spanish bank repossessions:

1)  Subasta 2) The 21-day rule  3) Full repossession – The first two types are ideal for cash buyers.

1) Subasta
The first distinct type is the Spanish bank repossession presented at the judicial auction (known as Subasta in Spain). This is where the property is still in the name of the original defaulting  owner, giving you the opportunity to buy at some of the best prices, by purchasing the loan. The downside is that the system involves an auction or bidding process in a court. As the property is still owned by the defaulter, property generally cannot be viewed. Unlike the UK and other major western economies, it is fraught with danger for those who do not understand what they are doing. Because the purchaser has to deposit a large percentage of the proposed purchase price, in the Auctioneers bank account, prior to being allowed to bid for a property, most Subasta properties are sold to local people. Purchasing at this stage of repossession is obviously a very complex affair. However, it does present real opportunities for a good price. We at Properties247 would be happy to explain to you, in greater detail, how to make Subasta purchases.
Please call, or use our contact form to find out more.

2) The 21-day rule
The second distinct type of repossession presents the best opportunity to buy. Here, you can secure the best price without the risks of buying at auction.  This opportunity occurs during the 21 days immediately after the property has gone to auction, but where no one has met the reserve price set by the bank. The bank has 21 days in which to pay all the taxes and put the property in their name. This is when the bank is likely to be most open to negotiation, as they would prefer to avoid those extra costs.In some cases, the bank will also consider refinancing on the new price.
Please call, or use our contact form to find out more.

3) Full Repossession
The final distinct type of repossession in Spain is where the bank has fully repossessed the property and paid property taxes and notary fee,s to officially place the property in their name.  They then offer these properties for sale. Generally this provides an availability of properties, with excellent mortgages of up to 100%, directly from the bank, that is keen to move the property on and get it off their books. Properties247 has lists of these properties, as we are registered specialists who manage this for a number of banks.

The Best Opportunity for Cash Buyers …

Without doubt, the best opportunity for clients in Spain is where the property has been through the first judicial auction and hasn’t sold. The bank has 21 days to complete the sale to a buyer before having to buy the property and pay all the property transfer taxes associated with the process. This is where the best deals are done. However a buyer will only see the financial information prior to the auction – photographs and property visits are only possible once the auction has finished. Therefore, our clients need a professional organisation, such as Properties247 which has an existing agreement with the banks to allow viewing and then complete the transaction within the 21-day period. It goes without saying that there needs to be a lot of preparatory work done and that our clients are decision-makers who can act immediately.

Selected real estate from these portfolios can be found in good locations and fully occupied buildings. The reason that these properties are on the market is not because of a failed project, but because an unfortunate individual has failed financially. This category of real estate is far more suitable for immediate selling.

 

How to take advantage of the 21-day window of opportunity

A Guide getting the very best spanish property repossession deal

In order to buy during the 21 days after Subasta, you must have the following in place:

  • You will need your NIE number, as without it you cannot buy a property in Spain
  • You will need your Spanish bank account and funds ready to complete the property purchase
  • You will need a chosen lawyer in place and an exact understanding of how you wish to buy the property
  • You will need proof of financial resources, to complete the purchase, to provide to the bank

There are other smaller points but the above checklists are a must. You will need to work with a professional agent such as Properties247 to make sure you can complete the transaction in the necessary time scale.
Please call, or use our contact form to arrange a meeting.

 

How Properties247 can help you …

When placing an investment where matters are so complex, it is important to deal with a company that you can completely trust in their capacity to execute such a process.

The following are some of the reasons why you should use Properties247…

 

  • We have day-to-day experience of working with Spanish banks for over 25 years.
  • We have unrivaled expertise in all three stages of Spanish bank repossessions
  • We have  established contacts and relationships with all the major banks in Spain and judicial lawyers, built up since the 1980s
  • We have access to exclusive property from select banks
  • We have access to the best deals before they come available to the general market
  • We have access to our internationally recognised Architecture department and construction company services for any renovations
  • We have the best level of financial service for mortgages anywhere in Spain
  • We have the ability to then sell your property and free your profit

To take advantage of the best Spanish bank repossessions available, please contact Properties247 on 00 44 1305 534490 or use our contact form to arrange a meeting.