BUYING a bank repossessed property in Spain is seen as a cheap way to get a home or just getting one for investment purposes.
Bank repos are almost inevitably down to the previous owner unable to maintain their mortgage payments and were especially common during the economic crisis of 2008 onwards.
With interest rate hikes and the cost of living these days, there is still an extensive portfolio of such properties available on the market.
Property portal idealista has listings starting from just €2,300 and there are rural properties coming in from €7,200 in Alicante province.
Acquiring a bank property can offer various benefits to buyers who are looking for a property at a competitive price and with favourable terms.
One of the main advantages of getting a repossessed property from a bank is that can offer better interest rates than on the current market and flexible payment terms.
Banks are keen to offload their portfolio of ‘distressed’ properties quickly which means a bargain price is very much on the cards.
There are no real estate fees to pay and banks may also offer additional inducements for a fast sale.
When buying a home from a bank, it is crucial to consider several important aspects to ensure a successful transaction.
All that glitters with a low price may not necessarily be gold and doing some research is essential to avoid a nasty financial surprise.
That includes inspecting the property to check out its physical state and also its legal standing to see what kind of charges or outstanding debts have accumulated- which will fall into the laps of a new owner..
Another important aspect to consider is finance and despite banks offering good deals on foreclosed homes, potential buyers are advised to make sure they full understand the terms and conditions of a mortgage loan.
It is therefore a strong recommendation to get legal and financial advice before going ahead with a purchase to get expert guidance on every aspect of the transaction.
Bank repossessions are normally sold ‘as seen’ which usually means that buyers will have to lay out part of their budgets to carry out renovations and improvements.
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