Bank repossesed property & mortgage

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25 Mar 2010 00:00 by Arindam Star rating. 6 posts Send private message

Hello Everyone,

I am planning to buy an apartment in around Villamartin, Costablanca. I would need a mortgage. Is it safe to buy a Bank repossesed property ? Is it possible to get a mortgage on a repossesed property ? Any help will be much appreciated.

Cheers,

Arindam





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25 Mar 2010 11:49 by joanmalaga Star rating in Costa del Sol. 424 posts Send private message

Mortgages are very difficult to get at the moment, why not try to find someone selling who already has an existing mortgage you can take over.

This might be easier.

Joan





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25 Mar 2010 19:03 by fpegman Star rating in San Miguel De Salina.... 464 posts Send private message

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Try Solbank in Cabo Roig they are giving out mortgages at the moment



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25 Mar 2010 19:41 by Smiley Star rating in San Pedro de Alcanta.... 2437 posts Send private message

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Generally most banks are still giving mortgages although criteria have tightened since the arrival of credit crunch. There is a great deal more attention paid to purchase price than used to be the case (used to be only based on bank valuation which was invariably higher). Much more due diligence in terms of income assessment and ability to pay ratios. If it is a bank repo you need to be careful that there are no other debts lodged on the property (community fees, IBI, property taxes, utility bills) as these are debts recorded against the property and not the previous owner thus you could inherit someone elses debts. If a bank has repod a property then they would very likely advance a mortgage on it (subject to your meeting criteria) and the % they may advance may well be higher than a third party lender - CAM certainly were doing this and also Bancaja - but tread with caution - the bank MAY give an inflated valuation against what the property might sell for on the open market.

Client recently had been offered a property as a bank repo for 150,000€ - was offered a 90% mortgage. Having looked around she found a better property in better location (bigger sq m, newer, better facilities and condition) for 30,000€ less. Strangely enough the original bank was only willing to offer her 50% of the purchase price to buy this one.

Remember the three watchwords - Research, Research and Research.



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25 Mar 2010 20:18 by Arindam Star rating. 6 posts Send private message

Thanks very much for your input folks. Appreciate it very much. Just wondering will the local solicitor be able to find out the debts associated with the property? Big thanks to smiley for sharing the info.





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25 Mar 2010 20:40 by Smiley Star rating in San Pedro de Alcanta.... 2437 posts Send private message

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Hmmm can of worms.......In theory your lawyer should be able to establish that all bills are up to date and paid - this could be easy or difficult (the wrong way, the right way and the Spanish way) depending on whether those debts have been recorded at the Land Registry - in which case they will be on the Nota Simple. But Spain is a bureacratic nightmare and sometimes debts do not get recorded promptly - water bills for example can run 2 or 3 years behind. Unpaid community charges can take 3 or 4 years to catch up.

Now subject to how diligent and efficient your lawyer is (and whether he prefers a coffee and Tapas to dotting all the i's and crossing all the t's) he should be aware of all and every debt likely to be associated with a property and he should be able to check that everything is in order and what is outstanding. Make sure you get a good lawyer.



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25 Mar 2010 22:30 by claire T Star rating in Torremendo, Orihuela. 700 posts Send private message

EOS Supporter

Hi - if you use a decent agent then they too check all debts on the property and will provide a statement from the Administrator to show that the community charges are paid, as well as proof from the utility companies that they are paid up to date also. 

There are lots of repossessed properties in Villamartin but, as others have said, they are not necessarily the best value.  I know of one here (very close to Villamartin) which is on the bank's books at over 190,000€ and I have the same for sale for 125,000€.  The bank property comes with a great mortgage deal and you can probably put in a low offer, but it might not work out the best deal.  You will also find that many of the repos have been totally stripped whereas a resale will usually come fully furnished and equipped.

There are good deals to be had on both sides but just take your time and check out all your options. 



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Claire

 

 

For great value properties in southern Costa Blanca

 

www.realcostablanca.com

 




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26 Mar 2010 08:06 by Arindam Star rating. 6 posts Send private message

Thank you very much Claire T





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26 Mar 2010 16:53 by ******** Star rating in UK & Murcia. 571 posts Send private message

Hi Arindam

I've changed Spanish solicitors twice.  For many reasons, one of them being that the ones I have used do not have the same idea of customer service as we are used to in the UK.   If I use a lawyer it is usually for something important, and I expect to have some form of effective communication with them.  Not so.

I know use Spanish Solutions near the La Zenia roundabout.  They are on the ball, responsive and have never let me down.  I am happy to recommend them from my own eperience.  Best wishes.



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Jane




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29 Apr 2010 11:35 by jinosbrovens Star rating. 1 posts Send private message

I think that in most cases it was not possible to sell the property for anything like the settlement money and they just gave the keys back. In several cases the distressed mortgagee was not that worried because the bank advanced more than they actually paid for the property one actually put 30,000 in his pocket.


 



This message was last edited by jinosbrovens on 29/04/2010.

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