in spain -
part IV of our course on foreclosures
part IV of our course on foreclosures
Before the current recession, if you wished to pick up a bargain repossessed Spanish property, you'd need to know how to buy at Public Auction in the Spanish Courts of Law.
Our online course tells you how to do this and, below, you'll find Part IV of this course, along with links leading to other parts of the course.
But, we've good news for those of you wishing to bag property bargains in Spain!...
The Spanish banks are now so inundated with foreclosed properties that they've opened up special departments dealing with the sale of these.
To cut a long story short, you'll now find it much easier to buy your repossessions directly through the bank.
What's more, most of the banks are offering 100% mortgages to residents with proof of income.
So, do check out the information on our main foreclosed Spanish properties page, along with the listings of foreclosures of the main Spanish banks.
And, now, for Part IV of our course ...
repossessed property in spain - foreclosures course part IV
In this section of the course, we consider the financial arrangements you'll need to make ...
What Financial Arrangements Do You Need Make?
The financial arrangements you need make depend on whether you’ve reached a private agreement with the owner or claimant, or if you’re going to bid at Public Auction.
1. Private Agreement
If you’ve reached a private agreement with either the owner or the claimant, the financial arrangements will be relatively straightforward and similar to if you were buying a property in the normal manner.
In other words, it will either be a cash purchase, or you’ll need to take out a mortgage to buy the property.
If you’re planning on a cash purchase, you may need advice on how to best transfer funds from another country into Spain.
If you need a mortgage, are buying from the claimant, and the claimant is a bank, it’s possible they will help arrange a mortgage for you.
Remember that, at the present time, banks are loaning up to 100% mortgages to residents when they - the bank - are the claimant.
2. Bid At Public Auction
Perhaps you didn’t manage to reach a private agreement and plan to bid for the foreclosed property at Public Auction?
If this is the case, you’ll first need to ensure you either have enough cash to pay for the property, or that a bank or financial institution will agree to give you a mortgage.
Then, you’ll need to organize a special deposit, the payment of which is essential in order for you to actually participate at Public Auction.
This deposit is usually - ‘though not always - 30% of the guide price or tasaci�n. It can either be paid into an account prior to Auction (more-often-than-not at the Banesto Bank), the actual account number and details being quoted at the Juzgados (Law Courts). You’ll need to take proof of payment along with you to the Auction.
Or, you can take a banker’s draft for the deposit along with you to the Public Auction, presenting it prior to bidding.
This deposit will be returned to all unsuccessful bidders.
Remember, you can always ask your lawyer or your local Spanish bank for help and advice with these matters.
3. Spanish Governmental Body
Occasionally, some other Spanish Governmental Body will be handling the auction.
When this is the case, either you or your lawyer should go along to the address given and ask details there of any specific financial arrangements you need to make.
foreclosure property in spain - other pages of interest
Below you'll discover 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 III
- 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