Apartment in Casares (PIM10005)
Apartment in Casares 3-bed apartment in a prestigious golf area…
€655,000
Popular Locations: Marbella | Benalmadena | Duquesa | Estepona | Fuengirola | Manilva | Mijas | Puerto Banus
Thinking about buying a repossessed property on the Costa del Sol? If so, our team of property experts are here to help. We are passionate and focused on finding the perfect property for our clients on the Costa del Sol.
We have a large number, of bank repossession properties for sale in and around the Costa del Sol area, whether it’s Marbella, Estepona, Benalmadena, or Fuengirola, we can help.
As with most economic downturns, there are always winners and losers. And with the recent pandemic and cost of living crisis, there are more losers, than winners. However, this is good news for people looking for a bargain property, with a bank repossession.
If you are seeking to purchase a bank repossession in Spain, in many instances it will be the bank as a vendor you will be dealing with as a potential purchaser. As such, it is important to be in full knowledge of the legal and financial implications, so we advise instructing a Spanish-speaking lawyer to ensure all is legal and above board.
Spanish bank repossession properties are becoming a popular option for buyers to get a bargain property.
A repossessed property is a property that the mortgage lender or bank has taken back after the borrower has stopped paying their mortgage each month, or they are not didn’t meet the terms of the mortgage.
The lender or bank has the legal right to recoup the outstanding amount borrowed. Once the lender or bank has reclaimed the property, they must then organise the sale of the property to cover the outstanding debt and any other additional costs incurred.
How do I find a bank-owned property in Spain? We work with registered repossession agencies and banks, so we have direct access to Spanish repossession properties around the Costa del Sol area. So, if you’re searching for bank-repossessed villas for sale in Marbella or a repossessed property for sale in Benalmadena, we can help.
Lenders or banks typically sell repossessed property through either an estate agent or it’s sold at auction. As lenders and banks want to recoup their losses as quickly as possible, they’ll be looking for a fast sale which is why many choose to sell repossessed properties at auction.
A property sale at auction can complete in less than 30 days. However, buying a property at auction is very different from buying a repossessed house through an estate agent. So, how do you buy a repossessed house at auction or through an estate agent? Buying a repossessed property at auction can be a fast and effective way of getting a great deal on a property.
Properties put up for auction are generally advertised for around a month before the sale, so you have time to view the property and arrange the necessary finance.
Many lenders and banks will sell a repossessed property through estate agents. Estate agents don’t usually market repossessed properties in the same way as other properties brought to market due to the negative connotations of repossession. Instead, estate agents normally have a record of potential buyers that they contact about the property.
If you’re interested in purchasing a repossessed property, it may be a good idea to contact a variety of local estate agents to find out if they have any available.
Yes, getting a mortgage on a repossessed property shouldn’t be any harder than getting a mortgage on a standard property. It’s all based on your deposit and credit history.
The fact that the house was repossessed previously shouldn’t affect your ability to get approved for a mortgage. Mortgage applications are primarily assessed on a borrower’s ability to afford the repayments, considered in combination with the size of the deposit they can put down and their credit rating.
If you decide to purchase a repossessed property at an auction, the process of buying it generally takes around 30 days, as there’s no.
Buying a repossessed house can allow you to get your hands on a great property deal quickly, but there are advantages and disadvantages to this and it’s important to consider these.
Cost Savings – The main advantage of repossessed properties lies in the obvious cost savings. Repossessed properties can cost anywhere between 20% – 30% less than their full market value. However, it’s worth noting that these properties sometimes need work, so it may require a degree of investment to bring them up to acceptable living standards.
No Chain – Another significant advantage of buying repossessed properties is the lack of a chain to hold things up. As you’ll be buying the house from the bank, you won’t have to wait for the sale of properties in the chain, making the transaction a much faster process.
Fast Sale – The lender wants to sell these properties quickly to minimise their losses, which means you can get your hands on a repossessed house much faster. Lenders often use auction houses to secure a speedy sale.
Poor Condition – It’s not uncommon for repossessed properties to be in poor condition. That’s why it’s a good idea to view the property before making an offer or a bid to identify any damage and the level of disrepair so you know how much you may need to invest to bring it up to scratch. These properties can have all kinds of issues, from a few missing fixtures and fittings to requiring significant refurbishment.
High Competition – The prospect of a great bargain and a faster sale means repossessed properties are often highly sought after and even subject to bidding wars. Competition over these properties can be fierce, so it’s a good idea to consider more than one property and set yourself a budget, so you don’t spend more than you intended.
Potential Gazumping – If you buy a repossessed property via an estate agent, be aware of potential gazumping – which is where your offer is accepted on a property but someone else swoops in and puts a bid that’s higher than yours, so the property goes to them. Most lenders will ask agents to keep properties on the market even if a sale price is agreed upon to see if they can get a higher offer.
Lenders generally have no reservations about gazumping buyers, even if you’ve spent money on a valuation or legal fees. While this could also happen if you buy a repossessed property at an auction, it’s less common as there are penalties for pulling out of a sale after bidding ends.
Hidden Costs – When properties are repossessed it’s common for some, if not all, utility services to be disconnected. You’ll probably have to pay for them to be reinstated. A survey on the property may also reveal potential issues that require work that will add to your costs.
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