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Real Estate Investors
are being traded every day; in some cases the entire list of properties may be bought buy a single buyer or Investment Fund and within a few weeks of receiving a new list from the banks. These properties are all sold for the value of the debt, in most cases at a fraction of the real value and of the valuation price and include: Apartments, Townhouses, Villas, Fincas, Land Plots, Commercials, Garages and and even whole Urbanisations. It is possible to make huge savings as the offer price can be as much as 80% below the actual valuation, but is more usually in the region of 50%. Since the system started recently in Spain some 460 million Euros worth of property has already been sold.
These deals are for real estate investors, and not really suitable for private individuals looking to buy cheap a house. The category of buyer is someone who has the cash ready to snap up a bargain to sit on until the market improves.
How it works; There are two areas to consider: Real Estate Investors
Judicial Auction (Cesiones de Creditos). This is to buy the debt from the bank that gives you ownership of the property until it comes up for judicial auction (Cesiones de Creditos), at which time, if no-one else bids, the property is automatically adjudicated to you. If anyone else puts in a higher bid (unlikely) you get your money back from the auction proceeds plus interest. There is consequently no risk of losing any money, but this is for investors rather than for people who want to buy a single property to live in (although this is not an impossibility if you are prepared to wait for the auction, which can take several months to happen). These properties are being sold off daily, so if you are interested in any particular property you need to act quickly. You should be aware that in most cases it is impossible to view the properties as many still have people living in them, but they can be viewed from outside of course once your interest to has been officially registered. Real Estate Investors
'Key in Hand' (Ajudicacion Bancaria). Some properties are Key in Hand, and these properties can be inspected, and bought directly from the bank without any delays. Viewings are possible for these properties and are by appointment only, which we can arrange.
Prices are more or less fixed by the banks, in the main it's a take it or leave it deal. The fact is that you are buying at the value of the Bank's defaulted mortgage loan and so the bank recovers its dues, which is all it wants. This is simply a method to dispose privately of properties that, if the whole foreclosing procedure has to be completed, takes much more time for the creditors to get hold of and would involve extra costs with lawyers and intermediary commissions etc.
Fees: 10% has to be added to the stated purchase price to cover the Legal fees and administration costs. These do not include Government taxes and closing costs.
Reservations: In all cases there is a 10% reservation fee which must be paid when the private sales agreement is signed with the Bank's Lawyers, at which time full details of the property are handed over (this is refundable in a maximum of 10 days if the buyer wishes to cancel the deal), and there are additional Notary fees when the property is finally taken over by the buyer.
All properties are offered subject to availability, so contact us if you are interested.
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