Bank Repossessions in Spain

About Bank Repossessions:

Bank Repossessions naturally attract attention as they are associated with genuine bargains. However, before considering this route you need to bear in mind that these deals are not in the same category as open market real estate transactions, rather, a financial investment by buying the debt from a bank. This is purely a financial transaction where the buyer is investing in order to make a profit on the bank’s selling price, whether for already foreclosed properties or about-to-be-foreclosed properties.

This kind of transaction is more suited to the serious property investor, and may not be appropriate for private individuals looking to buy cheap a house. The category of buyer is someone who has the cash ready to snap up a bargain to sit on until the market improves. Due to the nature of the situation in respect to each case it may not be possible to supply further information on the property in advance, such as photographs and rooms measurements and it may not even be possible to view the property in some cases.

Bank Repossesions are being traded every day; in some cases the entire list of properties may be bought buy a single buyer or Investment Fund, and within a few weeks of receiving a new list from the banks. These properties, located throughout Spain, are all sold for the value of the debt, in most cases at a fraction of the real value and of the valuation price and include:

     o  Apartments
     o  Penthouses
     o  Townhouses
     o  Villas
     o  Fincas
     o  Land Plots
     o  Commercials including: Hotels, Commercial Shopping Centres, Office Buildings, Tourism Projects
     o  Garages
     o  Whole Urbanisations (Complete New Developments).

It is possible to make huge savings with the average BMV in the region of 50%+. Since the system started recently in Spain some 460 million Euros worth of property has already been sold.

The Lawyers acting for the Banks and their Agents have the Power to Release information to Potential Buyers / Investors once there has been a registration of Interest. The listed prices are net and include the Repossessing Bank’s fee’s incurred in the repossession process of the property. As an intermediary, we are authorised to bring these opportunities to investors and to facilitate the process in return for a fee from the transaction. As we do not receive commission or fees from the banks we make a fee to the buyer for our services.

The table below shows an example of the type of properties we have to offer under Bank Repossessions in Spain.

Key: AB = Key in Hand (Ajudicacion Bancaria), CC = Legal Process, Judicial Auction (Cesiones de Creditos). GD = Gran Desquentos (Ajudicacion Bancaria). This is just a small selection of investment opportunities we have to offer. We have many of these types of properties, all with good bank valuations.

How it works; There are three categories to consider:

1. CC: Judicial Auction (Cesiones de Creditos). This is to buy the debt from the bank that gives you title of the property until it comes up for public auction (Cesiones de Creditos), at which time, if no-one else bids higher, the property is automatically adjudicated to you. If anyone else puts in a higher bid (unlikely) you get your money back from the auction proceeds plus interest, with any accrued debts during the process being owed to you. There is consequently no risk of losing any money, but this is for investors rather than for people who want to buy a single property to live in (although this is not an impossibility if you are prepared to wait for the auction, which can take several months to happen). These properties are being sold off daily, so if you are interested in any particular property you need to act quickly. You should be aware that in most cases it is impossible to view the properties as many still have people living in them, but they can be viewed from outside of course once your interest to has been officially registered. No additional property details available until payment of 10% reservation deposit when the file for a specific property can be made available for inspection at the appropriate branch of the lending bank. The deposit is refundable if you do not proceed with the purchase, (less an administration fee of 10%, however this retention can be carried over to another property if required).

2. AB: Key in Hand (Ajudicacion Bancaria). These are properties that the banks now own outright and these can be inspected, and bought directly from the bank without any delays and to proceed straight to Notary. Viewings are possible for these properties and are by appointment only, which we can arrange. No additional property details available but the banks that own the property can make the keys available for inspection visits. No deposit required until signing of private contract to purchase.

3. GD: Bank authorised heavily discounted sale price. These are cases where we have been notified by the banks about properties they have authorised the vendors to offer to market for sale with big discounts. All and any property details such as number of rooms, built and plot sizes etc. will be provided on request. No deposit required until signing of private contract to purchase.

Prices are more or less fixed by the banks, in the main it's a take it or leave it deal. Some negotiation may be possible on big deals. The fact is that you are buying at the value of the Bank's defaulted mortgage loan and so the bank recovers its dues, which is all it wants. This is simply a method to dispose privately of properties that, if the whole foreclosing procedure has to be completed, takes much more time for the creditors to get hold of and would involve extra costs with lawyers and intermediary commissions etc.

Fees: * As mentioned above, in all cases a transaction fee will be charged to the buyer based on a percentage of the purchase price. This is totally seperate from your own legal fees, Government taxes and closing costs usually associated in the buying process in Spain.

Note: All properties are offered subject to availability.

Let us know what you are looking for:

Our lists are too extensive and comprehensive to send out individually so if you are looking for a genuine Below Market Value Property in Spain (BMV), please let us know what specifically you are looking for, i.e., the type of property wanted, town or area, and name the development name if you know it and we will reply quickly with specific properties matching your criteria.

For more information on Bank Repossessions in Spain or to arrange viewings please call (0034) 952 963937 or Email:

propertydirectors@telefonica.net