Hi
We are looking to buy a property in spain, we have heard that you can buy them directl from the banks.
Is this true and how do we go about finding out about properties
thank you
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Hi
We are looking to buy a property in spain, we have heard that you can buy them directl from the banks.
Is this true and how do we go about finding out about properties
thank you
Dear Sir/Madam,Quote:
Originally Posted by Unregistered
Let me start by saying that yes it's true. There has been a lot of hype over the last year on this matter and many websites and companies have been specifically incorporated targeting this market niche. However most of them are failing and the reason is very simple.
If you read my article on Bank Repossessions in Spain the average reposssession takes at least three years if not more. The repossessions that are now available are the ones that defaulted in 2006 which were only a handful unlike now.
All the wave of defaulters over the last year as a direct consequence of the rising interest rates (Euribor), plummeting exchange rate, massive layoffs, stock market crash etc are not going to be available at least until 2011 or even later as the law courts are now clogged with repos.
That is why many people are asking for bank repossessions like the next big thing but they seem to be unable to find all these promised bargain properties. Besides, the few good ones available are snapped up very quickly and are not released. You are better off waiting a few years to pick a good bargain from the glut that will be available.
A bank repossession has a very signficant discount on its price tag, you'lll know it when you see one! Many properties are being falsely advertised as bank repos and this is only misleading and frustrating purchasers as they are really non-performing mortgages or distressed assets but not repos.
Moreover, many Spanish banks have been forced to buy back or accept properties from distressed borrowers (mostly defaulting developers but also and increasingly private borrowers through daciones en pago so as to waive the mandatory provisions set by our laws which would affect adversly their credit-rating and liquidity ratios in such a dire time as now with a shortage of liquidity in the Money Markets. These properties waive a full blown-out repossession procedure and are therefore key-ready available from banks unlike repos.
All this will translate into a huge portfolio of properties available from banks themselves within the next years. In fact, in 2009 the largest Real Estate Agencies in Spain belong to banks themselves: Altamira (SCH), Anida (BBVA), Aliseda (Banco Popular), Promodus (Banesto)...Spanish Banks are doing exactly what they did back in the nineties they have set-up or completely overhauled their exisiting real estate divisions to get rid of their massive property portfolio which is ever increasing day-by-day.
So back to your question the reply is yes but perhaps now is not the best timing. If you are patient and wait 2 or 3 more years you'll be able to chose and buy home repos from banks themselves as in the nineties.
Regards,
Raymundo LarraĆ*n Nesbitt
Thank you for you reply Raymundo
something to think about,we did think now was the right time to buy as the property prices might go up in the next year
You're welcome.
YEs, totally correct, the one I bought was empty for a couple of years, dirt cheap, and yes, I waited for it for 2 years! Got to be in the know and be patient.Quote:
Originally Posted by Lawbird Lawyer
Hi,
at the moment there are alot of bank repossessions on the market, the banks are now working with estate agents to get these properties sold. It would be worth while you asking an agent if they have any bank repossessions that fit your criteria.
All the best