Buying in Spain
Spanish repossession property
Spanish repossession properties are starting to be available to buyers in Spain. Typically the only way to get hold of these bargains would be through contacts. However, now there are some investment companies that are offering great repossession properties in Spain directly to investors.
There are three sources of property that has either been already foreclosed (and can be bought direct from the bank) and property that is about to be foreclosed upon:
1. Adjudicaciones Bancarios (ABs)
2. Cesiones de Crédito (CCs)
3. Direct from owner with (or without) banks' approval, (Gran Descuento)
They all work in slightly different ways. The most popular of the lists are the CC's which are properties that are subject to a loan or mortgage from the bank and have overdue payments. These may be properties that are only 1 month behind, but in law this is enough to start the repossession process.
The CC properties are normally bereft of information. It is important to point out that the investor is acquiring a property for a price that is substantially discounted from the valuation figure and the difference between these two is the potential profit. Nevertheless this is not a business for the faint-hearted or those of an inflexible northern European mentality. At times it can be frustrating, and anyone wanting a quiet life should perhaps stick to the Gran Descuentos or Adjudicaciones Bancarias lists and forget about the Cesiones de Crédito products. The CC's do however give potential for huge gains.