El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal post 749. Time to buy in Spain now: Banks offering 30% to 50% reductions on their mortgages
Monday, April 23, 2012 @ 5:51 PM

That is what many banks are offering to clients at present: 30% to 50% reductions on existing mortgages. Many of them, under Government pressure, need to clean their balance sheets before the end of the current year and reduce their real estate stock.

So, for instance: If the unit you were buying off plan had a mortgage of 60k , they are offering to you a possibility of completing on this for less than the existing mortgage on the house. This reduction being of even 50% in some cases.

In more understandable words: Banks are doing almost "everything" to have people owning those real estate assets, because they need to meet the Government measures.

Time to start searching, maybe there is someone who is also willing to buy your rights on that unit. Investors?

"Sol / Islantilla", Islantilla, Huelva, Spain, by Juan Duque Oliva, at flickr.com

0 Like

Permalink

Spam post or Abuse? Please let us know

12 Comments

Lee Rogerson said:
Saturday, April 28, 2012 @ 7:06 AM

Hi Maria
if you already have a mortgage on a property, how can you get the best mortgage when your terms have expired, our bank has told us or rates will rise to 3 times the payment, now how can that happen?

dbd1@hotmail.co.uk said:
Saturday, April 28, 2012 @ 10:54 AM

Looking to buy a rentable flat in either Granada or Seville. At least three bedrooms. for 50 000 euros (cash).
reply to dbd1@hotmail.co.uk

Phil Rainbow Realty said:
Saturday, April 28, 2012 @ 12:04 PM

As a real estate agent myself we have been approached by a number of banks recently wanting to off load bargain priced or distressed properties, in many cases offering 100% mortgages, now is the time to buy!

danielca said:
Saturday, April 28, 2012 @ 1:19 PM

Maria,
Can you please provide evidence please rather than generalised statements.You sound like a sales person.

neutral observer said:
Saturday, April 28, 2012 @ 3:28 PM

Reference flat wanted from dbd1@hotmail.co.uk, 3 bed flat for 50,000 euros? - now that's what I call trying to exploit a families hardship (I imagine there will be lots of families hoping you don't have to sell your property during bad financial times - I don't think!). Reference Phil Rainbow Realty, well being an estate agent you would make a comment like that (who believes or trusts what you people say?).
Regards, N.O.

Lizzie said:
Saturday, April 28, 2012 @ 9:33 PM

Why not ask for a flat for 50k? there might be someone without a mortgage who's inherited a flat and they just want rid and would take that amount. Someone with a mortgage probably owes 100k so wouldn't be able to take an offer of 50k anyway!

There are older 3 bedroom flats in our little town for 25k so yes, banks are selling for discount prices. Ask an estate agent and the price will be 40k. Nice commission if you are an agent. Go straight to the bank manager and make an offer, a silly one, and you'll probably get it. Especially if you take on a mortgage, insurance etc. etc. the bank manager will probably then want to marry you!

Maria said:
Sunday, April 29, 2012 @ 8:47 AM

Danielca:
Regarding evidences, there is no advert of this on the net but we have already been offered some of these deals to some of our clients.
We are not sales people, we are offering to our existing clients all possibilities at hand so they can have their problems solved.
Kindest!
Maria

Mike said:
Sunday, April 29, 2012 @ 4:41 PM

Maria we are from Canada my wife was born in Spain we were looking at buying property for our retirement. Wit the economic situation is it prudent to get a mortgage right now? Can we deal directly with the Bank or is better to work through a realestate agent.

Thank you for your assistance

Linda> said:
Sunday, April 29, 2012 @ 5:33 PM

What about existing mortgages? How can you go about negotiating a better rate or are the banks so pleased that you are already a customer that they won't consider it?

Trebor Robertson said:
Sunday, April 29, 2012 @ 11:43 PM

Yeah, 30% to 50% reductions on semi-complete dumps that you wouldn't put your mother-in-law into! Buy in Spain at your peril; we've lost a small fortune there to snake oil sellers with more broken promises than there are sunny days in Andalucia.

The UK weather may be poor but at least the legal system doesn't perform like a circus contortionist to allow the unscrupulous/downright theives to evade justice.

Please don't blame the global downturn or other economic woes. The Spanish property crash happened principally because of unbelievable greed on the part of almost everyone associated with property construction and property sales.

Despite everyone trying to talk it up it will be decades before they manage to offload the already constructed million and a half new homes never mind start to build new ones.

George said:
Monday, April 30, 2012 @ 9:29 PM

Hi Maria,
Can you advise what is happening with the Dona Julia El Patio complex?
I understand the orginal developers went bust,is there any chance of getting a the full or part of the deposit back?
Since Caja Rural DE GRANDE took over the El Patio appartments,are the willing to sell the appartments at the current market price just to off load them,to people who had paid there deposit.
Thanking you in advance

Maria said:
Wednesday, May 2, 2012 @ 10:12 AM

Dear George:
We can contact Caja Rural on your behalf if you need, please email us to web@costaluzlawyers.es

Kindest,

Maria

Only registered users can comment on this blog post. Please Sign In or Register now.

Blog home page

Maria
Lawyer. Director of the Costaluz Lawyers team. Useful legal tips for an easy way in Spain. www.costaluzlawyers.es

Interesting links