Distressed Sales- before repossession!
There are various different types of sales which are called ‘ Distressed’ and this is just one
Whilst these situations are not very nice to read about, it is to some owners the last resort for getting out before the bank takes possession
However it does give today’s buyers a good opportunity to get a bargain- I suppose one mans loss another’s gain!
This type of sale is where the owner is prepared to sell at a price, which just covers the balance outstanding on the mortgage and costs of sale
It has no bearing on market value and the seller cannot afford to take anything less
There may well be situations where the amount to repay the mortgage may be more than market value, so be a touch careful when looking at these
They come and go as they normally only become available for sale at this reduced price in the weeks just before re possession
A good example is a 2 bedroom 2 bathroom ground floor unit on Al Andalus where an original owner has two apartments which he has to sell within 8 weeks or the bank takes over
So he is prepared to take 134.000 € for each, as this just covers the amount owed to the bank and costs
This is 45.000 € less than paid…a big loss but it is the last resort!
I have stayed in Al Andalus this January and found the apartments very well fitted out and spacious. The complex also looks well kept and the indoor pool was heated all the time I was there
So it is a good opportunity for someone
And there are others out there, so this is something to look out for if 2009 is your year to buy