Buying from the Spanish banks

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(Free-Press-Release.com) February 14, 2012 -- Buying from the Spanish banks

The process of buying a repossessed home from a bank in Spain might not be ideal for every real estate investor looking at purchasing a property in the country. But, there are other property options to buy from the banks that might be more attractive to some investors instead of negotiating for repossessed homes.

Along with offering repossessed homes the Spanish banks also have two other purchasing options than can provide buyers with financed property at lower than market value prices.

The first option is buying a property that has been given back to the bank in “Dación en Pago”

This is where someone struggling to pay their mortgage gives their property to the bank in return for a cancellation of their loan. The debt owed to the bank must be less than 80% of the current property value and the owner must show that a change of circumstances has affected their ability to meet mortgage repayments, but many Spanish houses and apartments have been given over to the banks in this fashion.

With a growing catalogue of vacant properties, the Spanish banks are becoming reluctant to take on more properties this way, but because they sell them at the value of the debt, with no added lawyers costs or interest, the property can be bought at considerably less than market value.

The second option is property that the bank has taken control of and commercialised because the developers they funded have gone out of business. Location and build quality are important to consider here as they could be the reason that the developers went out of business in the first place. But there are also good builds in attractive locations that the banks have take over due to the the bad acumen and business skills of the developers causing them to close down, not the development itself.

Similar to “Dación en Pago” options these properties are sold at debt value. Prices and quality of these properties can vary quite considerably, but bargains can be found especially when a developer has gone out of business but has had a fairly low debt to clear.

Whether you are looking at buying a property using the above options or purchasing a repossessed house, Girasol Homes can advise on the best way to approach the process of buying from the Spanish banks. With local real estate experts based in Spain equipped with knowledge of the provincial markets, we can find the right property tailored to your investment requirements and advise on finance and purchasing. Call today on 00 44 1974 299055 or check out our website at www.girasolhomes.co.uk

More information can be found online at http://spanishrepossessions.com/

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