| In common with many countries all around the world, | | | | Spanish bargain property. In virtually every case they |
| the Spanish property market is suffering a major | | | | are correct - repossessions are often available at a |
| downturn and as a result many Spanish banks are | | | | deep discount to the true value of the property. |
| repossessing properties. Put simply, a home | | | | Of course every buyer in Spain wants to buy at |
| repossession (or bank repossession) in Spain is a | | | | below market value - so how do you find |
| property where the owner has taken out a | | | | repossessions in Spain? |
| mortgage on the property and has not kept up with | | | | Spanish Property Auctions - Spanish banks and many |
| the agreed monthly payment to the lender (the | | | | private sellers who are facing repossession - and |
| bank) in which case the Spanish bank has seized or | | | | must sell - will as a last resort put their properties up |
| taken back the property (know as repossessing it). | | | | for auction. Many bargain Spanish properties will be |
| SPANISH BANK REPOSSESSIONS ARE INCREASING | | | | found at these auctions. However you can also find |
| Home repossessions in Spain are increasing rapidly | | | | yourself picking up a bad property so be very careful |
| due to the deteriorating economy while at the same | | | | and do your research. A very cheap Spanish |
| time mortgage costs are rising as are the basic costs | | | | repossession may be in need of lots of work, both |
| of living i.e. inflation is rising in Spain. | | | | structurally and cosmetically. Obviously these |
| Electricity, gas, food and petrol prices have risen | | | | repossessed properties are unlikely to have been |
| rapidly in Spain in the last year and so people with a | | | | looked after and had money spent on them for a |
| mortgage on their Spanish property have found they | | | | long time. |
| have less money with which to make their mortgage | | | | Repossessions Direct From Spanish Banks - This |
| payment to the bank. | | | | could be your best bet to grab a bargain property in |
| Increases in the Spanish mortgage rates have also | | | | Spain - to physically walk into a Spanish bank and talk |
| been considerable. Many people have bought | | | | to the manager. Many people are unaware of this but |
| property in Spain thinking low interest rates were | | | | many Spanish bank branches are franchised out. This |
| here to stay. However the Euribor which most | | | | means that the manager has a great deal of control |
| Spanish banks use to set their mortgage rates has | | | | over the local activities. If he has repossessed |
| been increasing as the European Central Bank seeks | | | | properties on his account book then he will no doubt |
| to keep a lid on inflation in the Eurozone. | | | | be keen to get them off the books. The only |
| Also unemployment has risen sharply in Spain. Many | | | | problem you face here is getting to the front of the |
| jobs in Spain are in the construction industry and | | | | queue ahead of the local Spanish businessmen. But |
| many workers have been laid off. | | | | now there are so many repossessions in Spain this is |
| Many repossessed properties in Spain are apartments. | | | | less of a problem. |
| This is because many speculators put down a small | | | | Direct From Property Owners - If an owner of a |
| deposit and expected to sell the apartment at a | | | | property in Spain is falling behind with their mortgage |
| healthy profit when it was completed. | | | | payments then clearly they know they are in danger |
| This worked for a long time but then suddenly the | | | | of having their house repossessed. |
| Spanish property market turned downwards and | | | | These owners are often referred to as distressed |
| many buyers found the apartment was worth less | | | | sellers. They therefore must sell and as keen sellers |
| than they what they had agreed to buy it for and so | | | | you will certainly get a bargain property if you |
| they either had to walk away and lose their deposit | | | | negotiate correctly. |
| or try to keep up with the mortgage payments and | | | | But how do you find these distressed sellers? Well it |
| try keep it going in the hope that over the long-term | | | | won't be obvious but when you are looking for |
| it would again rise in value. | | | | property, look for private seller adverts in local |
| But many of these property speculators in Spain | | | | newspapers, many of these sellers will be distressed |
| have found they couldn't afford mortgages on two | | | | sellers anxious to offload their property quickly |
| properties and so have had their apartments | | | | before it goes down further in value or that they fall |
| repossessed. | | | | further behind in mortgage arrears. |
| HOW TO FIND AND BUY HOME REPOSSESSIONS IN | | | | Look for Spanish property with estate agents also |
| SPAIN | | | | and look for those properties advertised as price |
| Many people looking to buy property in Spain are | | | | reduced or low priced for quick sale. Ask the estate |
| looking to find bank repossessions in Spain. This is | | | | agents too, they may well tell you which sellers are |
| because most Spanish property buyers associate the | | | | likely to accept offers well below the asking price. |
| word repossession with cheap Spanish property or | | | | |