Most private buyers looking for bargain property in Torrevieja will spend a great deal of time searching the long list of estate agents in the city and surrounding areas and arrange a number of viewings until they think they have found the bargain they’re looking for. This is a relatively simple yet time consuming process and another alternative is to look at bank property in Torrevieja. By this I mean properties that have been repossessed by the bank, either from developers that have gone bankrupt or private buyers who cannot keep up their mortgage payments. Many of these bank properties are snapped up by large investors with experience in bank repossessions but that should not put you off as anyone can purchase a repossessed property. I do not claim to be an expert on bank repossessions but will try to at least give some guidance and tips to think about for those wishing to purchase bank property.
Once a debtor (property buyer) has got behind on their mortgage payments by several months, the bank will start the foreclosure process. During this time the expenses, interest and legal costs will mount up for the debtor and this is the best time to contact the debtor with your interest in the property. By selling their property before it is repossessed the debtor can save on a lot of the above mentioned costs so will usually be open to negotiation. Another reason to get your offer in at this stage is that many of the banks will already have offered the debtor the option of relinquishing their property in full to cover the debt they have incurred, which is usually a fraction of the worth of the property, but some unfortunate debtors just do not have the finances to pay all the expenses and legal costs of a repossession procedure so have no choice but to hand their property over to the bank, lock, stock and barrel.
If you haven’t managed to negotiate with the debtor before the property is repossessed, it will now belong to the bank, but there is still a chance to put in a reasonable offer to the bank as they will be trying to sell it as soon as possible before they have to start paying costs on it. To make sure you get the best deal possible, look at similar properties in the area you are interested in that are being sold by private owners and compare prices. All bank property in Torrevieja is sold ”as is” so it is imperative to thoroughly check the property before any offer is made, and the expense of hiring a structural engineer can prove to be a very wise decision, especially if the property has been on the market for a long time. Lastly but most importantly, always hire a lawyer to oversee your property purchase as the process can get complex and there is a lot of ”red tape” involved; and remember the banks employ teams of lawyers that specialise in Spanish property law, so make sure the one you use knows their stuff.