There are many repossessed properties for sale in Spain owned by Spanish banks. These properties can be purchased at a bargain price well below the market value, and can be a great opportunity for investors and buyers alike.
Repossessed properties from the bank generally come from people that cannot meet their mortgage repayments. Once a mortgaged property is repossessed by the bank, they will try to sell the property on to recover any debt left with the Spanish bank.
This can work well for potential property buyers, as the banks can be open to offers on repossessed properties. Spanish banks will also be more willing to offer higher mortgages, or mortgage values on the properties that they have repossessed in a bid to sell them.
Be aware, even if you are purchasing a repossessed property from the bank, you must still carry out your due diligence with a qualified Spanish conveyancing lawyer. There could be hidden traps such as unpaid taxes, community of owner’s debts or even Squatters. It is also advisable to instruct an architect, building surveyor or builder with you to check for any major structural problems with the property.
There are many Property developers that have hit hard times with the collapse of the Spanish property market in 2007, and have been declared bankrupt. Due to this, whole developments were repossessed and sold on by the Spanish banks. Some developers managed to keep hold of the developments, and before the banks declared them bankrupt they were able to sell the properties on at a heavily discounted price of up to 30 – 50% below the present market value. These properties are known as distressed properties.
· Always inspect the property with a professional builder / Architect
· Always hire a lawyer – He will do all due diligence and check all charges or debts that may be on the property and help with all legal paperwork.
· Check property prices in the area, to help you make an informed offer on the property.