It is no secret that the Spanish banks face a huge problems in the current financial climate. They have huge portfolios of repossessed properties and very little experience in dealing with the problem.Traditionally Spanish banks took repossessions into their ownership at full book value. If this was higher than market value they held the property, sometimes for years, until they could sell it for a profit or at least break even. In the process they didn’t need to declare losses and didn’t undermine the main property market with a flood of cheap homes.
Today the sheer number of repossessed properties means that the banks can’t follow traditional practice and desperately need to make sales.
The other alternative was to auction the property. Unfortunately the process in Spain is convoluted and anything but transparent. It is very difficult for an outsider (ie the general public) to find out what is being auctioned and where. This meant it became a great way for the family, friends and business contacts of the local bank manager to make a profit because they are the only people who would ever know what was available and where and when it was being sold. As a result sales occurred at ridiculously low prices; a great perk for the insiders but a disaster for everyone else. In particular this process is totally unsuitable for getting rid of the current back log.
Since the current crisis began we have seen the banks try all sorts of things to shift property; 100% mortgages (albeit for homes at old fashioned prices) being a prime example. Selling through agents hasn’t worked well either because of the unwillingness of many to co operate with each other. The bank wpould give the keys to agent A on the understanding that other agents could have access to them. Unfortunately it mever seemed to be convenient and even if an appointment could be made it was amazing how something always came up at the last minute to prevent the viewing!
Long months of hard work have now resolved most of the problems and we are able to offer a large number of repossessed, bank owned homes. The important thing to note is that the asking prices are set by the bank and are EXTREMELY negotiable.
The banks are also difficult with regard to commissions, which is why in most cases we need to charge a buyer a “finders fee” of 2,000 Euros. This will be more than recovered in price negotiations and we would be equally be happy to work for a percentage of any discount we can negotiate!
Finally we have many, many, more repossessed properties for sale than we can show on the site. There has never been a time like this for buying bargain property in the very best locations on the Costa del Sol and in Inland Andalucia and all you have to do is let me know what you want and when you are coming. We will sort out the very best properties that meet your requirements and help you get the bargain(s) of a life time.
+598 424 80 563
Skype; tickle.tip
Good post...
ReplyDeletelong term rentals in andalucia
holiday rental andalucia
ReplyDeletegreat Property in Marbella
I would love to see spanish salad
Hope to see more posting related to
§ Bank repossession in Spain