Embargo/Sale of uninhabited property if owner owes high Community Fees...

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22 Feb 2018 11:31 AM by Susanspain Star rating in Mijas, Malaga. 145 posts Send private message

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HI, hoping someone is in the know!

I have 'heard on the grapevine' recently regarding buying an empty property... (hopefully at a reduced price becuase of the 'issues!)

'If a property owner owes a large amount of community fees, the community are legally able to embargo the 

property and SELL IT at auction. I.e to any member of the public that so wishes to buy it (from the new owners - the community.) ' 

I have heard of this where a Town Hall embargo a property and sell it at (public?) auction when they need to recoup unpaid IBI etc. 

Any tips or advice on this matter welcome. 

(Also.. does anyone know for sure that the property has to be put on the 'open market' and listed for 'public auction' for the month that I was told about. I have been advised that in this case there are professional investors whose job it is daily to look at the Boletins/public auction sites and it is unlikely that I would be able to achieve my aim of buying a cheap property as they have 'inside knowledge?' or the cash to just keep going higher.) 

There was a rule of thumb apparently that if the debt owed (to the community) was 40% at least of the past 10 years bills owed, then this is when the comminity could invoke the embargo and sell without the owners permission to recoup fees owed. 

Thanks for any input! 

 

(PS I am avoiding bidding on any properties that have illegal tenants in as I understand if they are paying the elec etc then it is considered their home by law and any owner present and future cannot get them out!!!) 

 

NB We are just looking for a good priced property for ourselves. We are not investors/dealers. 

 

BTW very useful reply here from your team on a similar matter!

https://www.eyeonspain.com/forums/posts-long-19263.aspx

 





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22 Feb 2018 12:02 PM by Kavanagh Star rating in Oil Drum Lane Newcas.... 1225 posts Send private message

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You would be a brave person, some might say foolish, to enter this dragons den. These sort of purchases are for highly experienced Spanish investors and not amateur foreigners after a juicy bargain. Beware greed does not get the better of you. Just look at all the threads on here of people having a nightmare with straight forward issues.   



_______________________
There is enough in the world for everyone, but not enough for the greedy!



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22 Feb 2018 12:45 PM by Susanspain Star rating in Mijas, Malaga. 145 posts Send private message

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Will bear this in mind Kavanagh.  We have an excellent gestor who will advise us if it is a 'no go.' I.e Don't touch with a bargepole. We are looking for any personal experiences where this has worked. 

NB We bought our current property 'on a punt' as it was such a bargin. It had been sold on twice Compraventa only since 1975 and escritura was not in sellers name. The judge didn't like it, but we were lucky enough to have such a good gestor she stuck with it and 4 years later the land registry put it in our name. (But we were always prepared that it 'might not happen!' but that we would have a cheap roof over our head. We only paid as much as we had paid in five years renting at silly prices!) 


This message was last edited by Susanspain on 22/02/2018.


This message was last edited by Susanspain on 22/02/2018.


This message was last edited by Susanspain on 22/02/2018.



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24 Feb 2018 10:06 PM by hugh_man Star rating in Kent/Roda . 1593 posts Send private message

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Bear in mind that many newer build properties that are incurring owner debts will most likely have a mortgage and it is most likely the bank will repossess the property to seek some compensation for non payment.

Communities auctioning off debt ridden property would likely be a rare occurence.





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24 Feb 2018 10:06 PM by hugh_man Star rating in Kent/Roda . 1593 posts Send private message

hugh_man´s avatar

Bear in mind that many newer build properties that are incurring owner debts will most likely have a mortgage and it is most likely the bank will repossess the property to seek some compensation for non payment.

Communities auctioning off debt ridden property would likely be a rare occurence.





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25 Feb 2018 10:01 AM by Kavanagh Star rating in Oil Drum Lane Newcas.... 1225 posts Send private message

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You are quite right hugh, each property will have it’s own horror story, mortgage and debts to who knows, some with a sad personal history like divorce, redundancy and/or serious ill health. The vultures and parasites need to be experts in this market in order not to get their fingers burnt.



_______________________
There is enough in the world for everyone, but not enough for the greedy!



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25 Feb 2018 10:11 AM by briando55 Star rating in Yorkshire. 1982 posts Send private message

The first thing to consider is why you want to buy the house.    If it’s just right for you long term, in the right area and going to be a place you settle in, then look further and find all the information you can.

If your just buying it because it’s cheap and it’s a risk, and possibly you can make a bundle of cash on it, look at your finances and if you can afford to lose the money, have a punt.   



_______________________

Best wishes, Brian

 




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