property professionals based in the Costa Del Sol specialising in bank repossessions
:: BANK CREDIT REPOSSESSIONS ::
In this situation the bank sells on the debt of the outstanding mortgage. In some cases the value of these properties can be up to 75% less than their market value. The initial information provided is very vague as it is not for general release. This information is usually only the location, development, valuation and current bank credit price, and it is only when a 10% deposit is lodged with the banks lawyer that full details are provided. It is at this time your lawyer will do the full property search and provide you with the complete breakdown corresponding to the property. The legal process in taking actual possession of the property can take up to 9 months, it depends on if the legal process is just starting or if it is nearing its end.
There is no risk involved as the buyer will be dealing directly with the bank, and the bank’s lawyers. When you purchase the "Debt" (outstanding loan), you acquire an appreciating asset. If the owner wishes to pay off their debt during this process, the owner will have to pay the penalty interest, as per the original contract with the bank which can be between 15-21%, the interest accrued from the date the debt was purchased, and all the legal costs. Whether the owner pays off the mortgage, or whether you acquire the property you are in a profitable position.
To gain a full understanding of the buying procedure for "Credits" properties please do not hesitate to contact us. We can provide you with the costs involved for this type of transaction to ensure that you are completely aware of the whole process.
For bank credit properties available please click here.