If you are considering buying a Spanish Bank Repossession who will surely find how much cash you use in the transaction will affect how much the bank is prepared to accept which is totally contrary to resale property purchases and those properties bought directly from the developer.
If you’re buying from a distressed vendor the only thing they consider is what they physically receive for a property so if you’re buying with cash instead of a mortgage your cash isn’t that big a thing to the property owner. The only exception to this is if the vendor is under a timeline to sell and his property could be repossessed if it’s not sold within a month in this case this owner will need to find a cash buyer for the property. The same principal applies to properties that are owned by a developer here the price the property is sold for will be dependent on the outstanding mortgage the developer has on the property and the reality is he will not sell it below that price as he would have to pay the difference. Again the developer isn’t concerned if its cash or mortgage he just wants the maximum he can get for the property.
However all these rules go out the window when buy bank repossession in Spain because the bank will always want cash. There was one Spanish bank that was the exception to that rule in that they were always prepared to lend up to 110% finance on their own properties to maintain their valuation or outstanding debt for the property but will now for the first time consider reducing their valuation of properties for cash buyers. Put very simply cash is king and if you’re a cash buyer then it’s Spanish Banks where you will get the best deals from. The only issue is that is does the bank actually have a property you want to buy. The banks own a lot of stock no one wants to buy and normally when they have properties people want to buy they are snapped up pretty quickly especially villas.
However if you do find the right property and you are a cash buyer then you will be able to achieve a discount on the property that a buyer seeking a 90% mortgage would not be able to negotiate. Even if you only had 50% cash you can be pretty sure the bank would give you some discount for that compared to a buyer seeking a 90% mortgage.
As stated above cash is king when looking to buy a bank repossession in Spain and if you want some help or further advice on how to take advantage why not give me a call at Spanish Hot Properties.