buying spanish foreclosures
buying spanish foreclosures
Below you'll find Part III of our course on How To Buy Repossessions At Public Auction in Spain.
Since the recession started, Spanish banks now have loads of bargain-priced foreclosures on their books.
Unlike pre-recession days, when the banks did very little to sell their repossessions, they have now opened up real estate sections which deal specifically with the sale of foreclosures.
In actual fact, we would now very much advise anyone wishing to buy Spanish foreclosures to deal directly with the bank concerned, as the procedure is much simpler than bidding at Public Auction, and the banks will normally guarantee the property debt-free.
If you're resident in Spain, with proof of income, it's more-than-likely you'll also be able to secure 100% mortgage.
But, for those of you who'd like to know How To Bid At Public Auction in Spain, we set out below Part III of our online course ...
investment property spain - buying spanish forecloses part III
In Parts I and II of our course, we looked at exactly what repossessions were, what we meant by Public Auction, how to find repossessed properties, and ways in which you could buy the property before it got as far as Public Auction.
In this, Part III of our course, we'll take a quick look at the steps you should take to check out the property prior to purchase.
Investment Property Spain - Is The Property Occupied?
One very important point is whether or not the property you wish to bid on is still occupied.
If it isn't, this is a very big plus, as it could mean much less complications if you're successful in your bid.
However, what happens if the property you like seems to be occupied?...
First of all, you need to check whether its occupants are tenants or owners.
How do you do this?...
Sometimes, the answer can be as simple as knocking on the door and having a chat with the people inside.
Failing this, you could stroll round the property and, hopefully, talk to neighbours.
If the property is an apartment in a block of flats with a porter, have a chat with the porter.
If this doesn't work and the property is part of an urbanisation or block of flats, find out who the administrators are and pop along to see them.
When planning to bid for a repossession at Public Auction in Spain, a lot of legwork is involved, and you need to get inventive.
This, of course, introduces another problem ... How well do you speak Spanish?
You'll need to be fairly at home with the language to unearth the information yourself.
If you feel your Spanish is not up to it, then you'll have to employ the services of a lawyer to do this legwork for you.
Tenant Or Owner-Occupied?
Even if the property is occupied, you should try and work it to your advantage.
For example, if it's owner-occupied, have a heart-to-heart with them about buying the property before it goes under Public Auction in Court.
The owners will be in financial straights, so will probably welcome the possibility of a private sale with you.
If, on the other hand, the property is occupied by tenants, your aim will be to discover if they have a proper rental contract, along with its terms.
Investment Property Spain - Do Any Outstanding Debts Exist?
Another important factor at this point is to learn about any debts owing on the property.
This is particularly important as, in Spain, any debts will be passed onto the new owner.
Here are the main steps for you or your lawyer to undertake ...
- Discover if any comunidad bills (rates) remain unpaid - ask the administrators about this.
- Visit the Registro de la Propiedad (Land Registry) and the Juzgados (Law Courts) to learn of any debts against the property - such as mortgages.
- Go along to the local SUMA office and ask if any unpaid IBI and rubbish bills on the property are outstanding.
- Check that electricity/phone/gas bills are all paid by getting in touch with appropriate company.
As you can see, buying repossessions yourself at Public Auction in Spanish Law Courts is no easy matter!
Although you had to do this in the past in order to secure a bargain repossession, it's now a much simpler matter to buy a foreclosure direct from the Spanish bank concerned.
investment property spain - other pages of interest
Check out the links to other parts of the course, plus foreclosure listings for the main banks in Spain ...
- Current Foreclosure Listings For Main Spanish Banks
- Buying Properties At Public Auction, Part I
- Buying Properties At Public Auction, Part II
- Buying Properties At Public Auction, Part IV
- Buying Properties At Public Auction, Part V
- Buying Properties At Public Auction, Part VI
- Free E-book On How To Buy Repossessed Property In Spain