Foreclosed Homes May Flood Spanish Market as Banks Offload Unwanted Assets (Source –Bloomberg.net)

7th December 2011 – Tenerife

Foreclosed Homes May Flood Spanish Market as Banks Offload Unwanted Assets (Source –Bloomberg.net)

Following on from the recent economic crisis in Spain, there has been a sharp rise in the amount of mortgage defaulters which, in turn, has led to an increase in the amount of repossession properties in the marketplace. Whilst this may sound like bad news for those who have financial problems, it is potentially good news for those who are seeking to purchase a bargain. You might think that finding a property which is being sold at a give-away price would be easy therefore, but this is not actually the case and sourcing the true and problem-free bargains can be a minefield for those who are actively seeking to purchase.

When a property owner defaults on his mortgage commitments, the bank must enter into what is often a lengthy and drawn-out process in order that the terms of the agreement are adhered to. Due to the long process involved in ascertaining the ability of the defaulter to prove his or her inability to pay, it can often take up to 2 years before the bank is in a position to offer the property in question for resale. During this period of time the bank will normally retain the keys to the property and information is difficult to acquire – that said, many repossessed properties were purchased at the peak of the market with unrealistic loan to value ratios and it is for this reason that many banks are now finding themselves in their own negative equity traps as they offer repossessed properties at the level of the outstanding mortgage. It stands to reason that the banks want to recover what they lent against each property but with the fall in prices most banks will be prepared to listen to sensible offers but are reluctant to consider a sale where their losses would be significant. This scenario is where Tenerife Property Investment can be of benefit to those who are seeking a bargain property. Their pre-existing relationship with a large number of the major banks in the Canary Islands puts them in the forefront of negotiation power and combining this fact with their expertise in the property market, makes their advice invaluable for the prospective purchaser.

Tenerife Property Investment´s home finder service is able to source the best bargains by building a relationship not only with the banks, but also with the agents and vendors thus enabling them to provide and source properties which, in many case, are actually in the pre-repossession stage and thus provide easy access to the best deals around – in the right location, for the right usage and most of all, at the very best price. In addition, the ability to source product from the bank, rather than from agents, results in safe and secure purchases for prospective buyers in a wide range of prices.

By listening to clients needs and wishes, Tenerife Property Investment´s team of property finders are even able to negotiate with vendors to achieve some unbelievable offers prior to the repossession stage, simply so that the vendors can escape from what could become an extremely serious credit-rating problem – thus satisfying both the vendor and the prospective purchaser.

For further information please contact
Sherril Wilkinson
www.tenerifepropertyinvestment.com
Tel (0044) 0207 183 6287
Email sherril@tenerifepropertyinvestment.com

Eddy Wilkinson has more than 30 years of experience working within the property market, during which time he has studied property trends and investment in many countries throughout Europe and also in the USA. He has written many articles on this subject and specializes in the Spanish property market where he has given talks and advice to many people seeking to invest in the luxury second home sector.

Sherril Wilkinson
Tenerife Property Investment
Chayofa Country Club
C/Morro
Chayofa
38627, Arona, Tenerife
Jon@tenerifepropertyinvestment.com

This release was published on openPR.