Bank Repossession Guide

BANK REPOSSESSIONS



The Propety Gallery SL has over the years not been in the habit of dealing with bank repossessions, partly because there were not a lot available and partly because the demand for these types of properties was very low. However, with the changing economical climate we have found that more bank repossessions are on offer and the demand has risen tremendously. Hence today we find ourselves dealing with them on a daily basis. In addition this year we have been appointed as exclusive agents for Tenerife by a leading Spanish bank.

Bank repossessions are a totally different type of property sale to a resale or new property on the market, so therefore we wanted to offer a guideline on how it all works

 

General information:

A Bank Repossession is owned by a bank. Since the bank does not really want the property, but prefer to recuperate the money they lent in the first place on it they offer a higher percentage of mortgage on it compared to a normal bank mortgage and also offer the property at a greatly reduced price.

However, do remember that the bank did re-claim the property from someone that has often stripped it of many fixtures and fittings, so what you are purchasing can often be the bare shell. Therefore be prepared to do a considerable amount of work. There is also the additional cost of furnishing it.


Steps to buy a Bank Repossession:

  1. Search for your property. The Property Gallery SL has a large number of bank repossessions on our portfolio so you can naturally browse our web site or alternatively let us know that you are interested in this type of property and we can e-mail you a complete list of available properties.
  2. Contact us for Information. If you are interested in any of the properties or wish to discuss the areas and property options, feel free to contact us. You can do so by:
    1. a) Request A Call Back under the Contact Us tab,
    2. b) Fill in the Online Enquiry Form under the Contact Us tab,
    3. c) Calling us on (0034) 922 719925 in Tenerife ( Spain), where our Sales Consultants will be pleased to assist you Monday to Friday, 9 am to 5 pm (GMT time).
  3. Visit the property. If you are finally interested in visiting properties, our Sales Consultants will then contact you to make an appointment.

In case we are unable to contact you by telephone we will send you and e-mail. We will need at least 24 hours working days notice to arrange for keys to be available for the property or properties you have selected to visit. We normally suggest that we meet in our office or in your hotel reception.

  1. Formalising the Operation. Steps to follow:

1.Present the purchase request. If you are interested in buying one of the bank repossessions, you need to fill out the Purchase Request Form. Once the request to buy is approved by the bank a 10% deposit is paid by bank transfer to the bank and the receipt of the payment together with a signed reservation contract is sent to the bank.

2.Once the Purchase Request has been accepted by the bank, you will need to formalize the operation within 1 month by signing the corresponding title deed in front of a public Notary, and pay the balance of the purchase price plus taxes . This payment will also be carried out by depositing the money into an account stipulated by the bank or by bankers drafts made payable to the bank.

3.Request your NIE (identification number for foreigners). You need a NIE to buy and register your home in Spain in your name. The NIE is normally requested in a police station in Spain. The Property Gallery SL’s staff will assist you with the application when you buy a property through our company.

An NIE number is a tax identification number to be used in Spain and the Canary Islands. Prior to purchasing a property, selling a property, obtaining a mortgage, starting up a business or working in Spain, etc, it is a requirement by law that every individual possess an NIE number.

4.We also recommend that you appoint a lawyer when buying a bank repossession. We can provide you with an excellent well established lawyer with extensive experience on repossession properties.

5.Request your Mortgage (if required). The property can be financed by the bank. The bank offers special conditions on its bank repossessions. Please check with your sales consultant the latest percentage that the bank will generally lend (this is subject to status and final approval by the banks underwriters)

If you need financing, you should hand in a Mortgage Application along with the Purchase Request including all the paperwork needed to study the operation.

6.Signing the Dees. The Property Gallery SL together with the bank and your lawyer will be in contact with you to schedule the deed signing before a Notary when the remaining monies due are paid and the keys to the property are handed over.

We work with various companies which offer services to help you and to make your purchase a little less stressful; solicitors, community offices, builders, pest control, cleaners and furniture companies.