Comments on: Costa del Sol Bank repossessions http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/ Costa del Sol property Tue, 20 Jul 2010 22:51:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Andrew http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-177 Andrew Tue, 07 Apr 2009 17:17:18 +0000 http://blog.arribaestates.com/?p=633#comment-177 latest article http://blog.arribaestates.com/2009/04/07/spanish-repossession-and-distressed-property/ latest article

http://blog.arribaestates.com/2009/04/07/spanish-repossession-and-distressed-property/

]]> By: Andrew http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-176 Andrew Tue, 24 Mar 2009 11:03:03 +0000 http://blog.arribaestates.com/?p=633#comment-176 latest article http://blog.arribaestates.com/2009/03/24/cajas-and-repossessed-property/ latest article
http://blog.arribaestates.com/2009/03/24/cajas-and-repossessed-property/

]]> By: Bank Repossessions Spain http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-175 Bank Repossessions Spain Tue, 03 Mar 2009 10:58:26 +0000 http://blog.arribaestates.com/?p=633#comment-175 Most of the properties that have been repossessed by the banks are from the period where 100% mortgages were being given out left right and centre. Some in fact that were given more than 100% of the purchase price coupled with the fact that prices espeically here on the Costa Blanca - have fallen a lot in price since, hence the reason that they may not seem as attractive. I personally do not know about the situation in the Costa del Sol as we do not market down there, but here - repossessions are growing in numbers, maybe not as many as first thought but distressed sales are a lot more prominent in today's market in Spain due to a number of different reasons including the poor pound sterling to euro exchange rate which affects many expat pensioners, employment - as most of the expats that moved to Spain ended up selling houses or working in an industry connected to housing in Spain. Most of the properties that have been repossessed by the banks are from the period where 100% mortgages were being given out left right and centre. Some in fact that were given more than 100% of the purchase price coupled with the fact that prices espeically here on the Costa Blanca – have fallen a lot in price since, hence the reason that they may not seem as attractive.

I personally do not know about the situation in the Costa del Sol as we do not market down there, but here – repossessions are growing in numbers, maybe not as many as first thought but distressed sales are a lot more prominent in today’s market in Spain due to a number of different reasons including the poor pound sterling to euro exchange rate which affects many expat pensioners, employment – as most of the expats that moved to Spain ended up selling houses or working in an industry connected to housing in Spain.

]]> By: Andrew http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-174 Andrew Sat, 21 Feb 2009 21:29:13 +0000 http://blog.arribaestates.com/?p=633#comment-174 Thank you Sipengino, Good idea, do a search. Thank you Sipengino,
Good idea, do a search.

]]> By: Sipengino http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-173 Sipengino Sat, 21 Feb 2009 19:01:28 +0000 http://blog.arribaestates.com/?p=633#comment-173 Maaaan, you know there is such thing in the web like search engine, http://google.com if you don't, go there to understand why this post is bullshit Maaaan, you know there is such thing in the web like search engine, http://google.com if you don’t, go there to understand why this post is bullshit

]]> By: Andrew http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-172 Andrew Mon, 26 Jan 2009 22:15:55 +0000 http://blog.arribaestates.com/?p=633#comment-172 The following article might also shed some light how how repossessions work in spain <a href="http://blog.arribaestates.com/2009/01/24/bank-repossessions-spain/" rel="nofollow">Costa del Sol repossessions</a> The following article might also shed some light how how repossessions work in spain

Costa del Sol repossessions

]]> By: Andrew http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-171 Andrew Mon, 26 Jan 2009 21:31:39 +0000 http://blog.arribaestates.com/?p=633#comment-171 Hi Rasheed, It is worth noting that unlike say their British counterparts, Spanish banks are not currently having the financial difficulties of any serious note. Thus the banks are not in the situation where they need to off-load these assets. Second, most banks largest liability is not with home owner mortgages, but with lending to developers. So what will happen if a developer defaults on a project and becomes repossession? In the project is mostly sold the bank will arrange for it to complete to capitalize on large potential income that most of the individual buyer have to pay as most would only have paid up to 30% of the total cost. With the remainding properties being rented or bought through a let to buy scheme. Another option would be to convert a mostly unsold project into VPOs (government subsidized housing) where the bank can supply the mortgages. They would make a reduced profit, but a profit nonetheless. These are just a few alternatives to the bank simply selling the repossessions and a vastly reduced price. The government is also offering a range of schemes to help mortgage holders to offset their mortgage for periods up to 2 years and the banks are negotiating with debtors to help them through these trying times. So given the myriad of options open to banks in Spain, think they could wait? Andrew Hi Rasheed,
It is worth noting that unlike say their British counterparts, Spanish banks are not currently having the financial difficulties of any serious note. Thus the banks are not in the situation where they need to off-load these assets.
Second, most banks largest liability is not with home owner mortgages, but with lending to developers.

So what will happen if a developer defaults on a project and becomes repossession? In the project is mostly sold the bank will arrange for it to complete to capitalize on large potential income that most of the individual buyer have to pay as most would only have paid up to 30% of the total cost. With the remainding properties being rented or bought through a let to buy scheme.
Another option would be to convert a mostly unsold project into VPOs (government subsidized housing) where the bank can supply the mortgages. They would make a reduced profit, but a profit nonetheless.
These are just a few alternatives to the bank simply selling the repossessions and a vastly reduced price.

The government is also offering a range of schemes to help mortgage holders to offset their mortgage for periods up to 2 years and the banks are negotiating with debtors to help them through these trying times.

So given the myriad of options open to banks in Spain, think they could wait?

Andrew

]]> By: rasheed http://blog.arribaestates.com/index.php/2009/01/21/costa-del-sol-bank-repossessions/comment-page-1/#comment-170 rasheed Mon, 26 Jan 2009 20:43:14 +0000 http://blog.arribaestates.com/?p=633#comment-170 Given the current crisis, can banks realistically wait for a turnaround in the market before selling a repossession at a bargain price? They could end up with a huge stock pile of property !! And who knows how long it will take for the market to turn around. Given the current crisis, can banks realistically wait for a turnaround in the market before selling a repossession at a bargain price? They could end up with a huge stock pile of property !! And who knows how long it will take for the market to turn around.

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