Everybody’s talking about distressed sales and bank repossessions – they’re the real buzz words of real estate at the moment – and Spain’s Costa del Sol is no exception! So what’s so great about buying a bank repossession? There are two main categories of bank repossessions. Unfortunately in Spain some individuals have found themselves unable to keep up with their mortgage payments and had their homes repossessed. Although a few of these properties are in areas that might appeal to foreign buyers, most are located in the built up areas of the coast’s main towns and cities.

Luxury Marbella Bank Repossessions
Luxury Marbella Bank Repossessions
The second category of bank repossessions is made up of those properties which were previously owned by developers who were unable to continue making the payments due to their bank or lending institution. These newer properties are generally more interesting to foreign buyers – they are located in the most popular areas and are brand new with no previous owners! In some cases, the bank will have acquired several properties in a development. This enables them to drastically reduce the price of the units on offer, sometimes by more than 50%, and it is these properties that appear most regularly on the bank repossession pages of agents’ websites. The agent is, in fact, acting as a liaison between potential purchasers and the banks – after all the banks are not estate agents, have limited personnel resources and certainly no staff trained in property sales. Despite most people thinking that price is the main attraction of bank repossessed properties, it is actually finance that provides the main incentive. Generally speaking, the Spanish banks are currently advertising non-resident mortgages at around 60% LTV. Even at such low loan-to-value rates, these mortgages can be hard to come by and even harder to nail down. But mention to a bank that you plan to purchase from their list of repossessed stock, and you may find that all of a sudden the question of finance becomes an awful lot easier. The banks are reluctant to approve any new finance but, of course, more willing to provide new mortgages on properties for which they are not currently being paid. You may find that the qualifying conditions are easier to comply with, and that LTV will typically range from 80% to 100%, even for non-residents. In some cases, it is even possible to borrow over 100%, covering the costs of your buying expenses and/or furniture package. Keep an eye on our main property pages for more information on bank repossessions and to catch all the latest deals such as where prices start in Elviria at 155.000 for two bedroom luxury Marbella apartments.