Bank Owned Property
Bank Owned Properties in Spain
Nowadays the banks are the owners of a big part of the houses for sale in Spain. These properties come from developers’ bankruptcies and people that can not afford the payment of their mortgages. The houses are highly sought after by experienced investors in the property market in Spain because with a little paint, effort and imagination you could easily ‘flip’ the property for a decent profit or gather a couple of rental properties for a more interesting price.
Anyone can buy a bank owned property. If you are looking for a bargain this is a great option, but be careful, all that glitters is not gold. Our team is specialized in dealing with these transactions. We know how to find the right bargains and have agreements with all major banks. Dealing with them for over a decade has given us a great understanding to know when to advice you to go ahead or to keep looking for a better deal.
What happens in Spain Before the Bank Starts claims the property
The foreclosure process in Spain, that ends with the house repossessed by the bank , begins when the mortgage has fallen in arrears after several months without paying the monthly mortgage obligation. The repossession by the bank follows a legal procedure that involves high costs for the debtor. Usually, once legal proceedings have started, 30% is added as late payment interest, legal costs and expenses. In this period, before the procedure for repossession by the bank starts, it’s a good time to negotiate directly with the owner to purchase the property, as he will be interested in selling the house and save as much as he can of his investment and credit.
The Foreclosure Process in Spain
Once the process of foreclosure has started, the usual path taken before the housing bubble burst in Spain, was the auction of the seized property. In these auctions anyone can bid to acquire the property. The problem in recent times has been the lack of buyers in judicial auctions, which in effect made the final bid too low to meet the amounts owed by debtors on their mortgages. This issue has led banks in Spain to begin with the repossession property by the way of the assignment in payment. So, the bank, before filing a foreclose suit, allows the defaulter to offer the properties to satisfy the total debt instead of starting the legal process.This way it saved the people a lot of money and the banks had less risks.
The Property Already Repossessed by the Bank in Spain
Once the house is repossessed by the bank, it will try to sell it as soon as possible to avoid more costs linked to owning the property. The bank will consider any reasonable offer. Besides, buying a bank owned property it is the easiest way to get a mortgage with the best terms. The banks are looking to get rid of these excess properties and they are very open minded to listen to your offer and give you the mortgage. But, as said above, be careful. Commonly when you ask for a mortgage to the bank, the bank becomes an partner to check everything is in order with the property your buying, but not in with repossessed houses. There are possible traps hidden, like community of owners debts, local taxes unpaid, squatters in the property, ghost neighborhoods… It’s a must checking the property.
Quickly Check What Your Budget Is In Local Currency
So you know bank owned properties are something for you and you don’t want to spend too much on currency exchange. We have years of experience and can get you the best deals and value for money you can find. Check out Currency Exchange for more information.
Tips Buying Bank Repossessed Houses In Spain
Once you have found a property that interests you, remember that foreclosed properties are sold under the principle of “caveat emptor”, so you should really do your homework before making an offer.
Ask us about sales prices of comparable properties in the area to determine how much should be your offer. A bank owned property is cheaper than others in the same area necessarily. Sometimes finding a seller who wants to save part of his investment before the foreclosure can give you a more competitive price.
You must do a thorough check of charges and debts: Most drama is at the Land Registry in Spain, but there are other debts that do not have to appear there.
The seller is the bank. They have a crowd of lawyers that know every single law in Spain and the tricks to put the deal in their favor. You MUST HIRE A LAWYER. The complexity of this kind of purchases, looking at the counterpart and to the legal complications that the repossessed property will have, makes necessary to hire a lawyer specialized and experienced in property in Spain.\
A lawyers fee is going to be around 1%-1,5% of the price. Nothing compared with the problems you will save. Besides, If you buy a repossessed house in Spain through us, we have agreements with all of the banks, and our legal fees will be included in the price.
Bank Owned Property Is Ideal for Flipping Houses
Flipping houses can be fun and very lucrative, especially if you exactly know what the return on investment will be. Perform accurate property analysis in seconds with the analysis tools that are powerful, yet incredibly easy to use. Calculate all important metrics for rentals, house flipping, multi-family, commercial buildings and Airbnb’s.
If you don’t know if buying bank owned property is the right move for you it could help if you could analyze long-term cash flow projections for rental properties and profit projections for flips. Quickly change deal parameters and see how they will impact your profit and returns.
You can enter all the information available such as the buying price, estimate after repair or rebuild values and even potential rent revenue with confidence so you know in advance what buying this bank owned property will mean for you.
Even though the software has an automatic import system for areas in the United States, it is build to work perfectly in Spain as well.
When you have entered all the relevant data the program will calculate the minimum selling price for you so you are sure to make a profit, and that’s very nice to know.
So if you’re interested in bank owned properties and you want to start flipping houses you can start today with a fantastic 25% discount using the code VIP25OFF at the website. Start selling houses yourself today and checkout the website now.
If you are already very familiar with house flipping and know how to work and customize spreadsheets yourself this program might also be interesting for you.
Go to our bank owned properties or contact us.
