Bank Repossessions

The financial crisis and unemployment in Spain have left many people unable to pay their mortgages forcing the banks to repossess the properties. The banks in Spain are in a position where they need to sell properties to recoup their capital.

Not all the properties on offer represent great value for money. Some people who have seen negative equity on their properties have simply elected to give their properties back to the bank. If the banks then offer these properties at the value of the mortgage and the original loan to value was close to the peak price market value, then these properties are actually over priced in todays market.

Banks are not to keen to reduce the prices of these properties, because this acknowledges a depreciation in the value of their assets. Therefore until the banks decide to take the hit, these properties will remain unsold.

That said there are bargains to be found. If for example a property owner has substantial equity in the property, and the finds himself in a position to pay the mortgage. The property owner then fails to sell the property before the repossession proceedings go through, the bank can sell the property at below the market value and recoup the capital.

Spanish banks can also offer generous mortgage terms, such as no set up costs and 100% mortgage loans, making the purchase much cheaper than it ordinarily would be.

The following page in the directory lists bank property portals:

Spanish Bank Property portals

14-02-2010

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