Distressed sales bargains to be had – the facts revealed

It's a fact: The Spanish economy is recovering from the recession which has affected most of Europe and there are those, who for one reason or another, need to realize the equity which is tied up in the property that they own.
Distressed sales can offer the purchaser an opportunity to invest now and beat the price increases thus saving them up to 40% when compared to similar properties. These properties offer an ideal opportunity to benefit from the ever expanding buy–to-let market and can generate incomes which cover day to day running costs whilst providing investment return over a relatively short period of time.
There are, without doubt, still some bargains to be bought. Distressed sales result, unfortunately, from a number of different scenarios which can vary from a change in financial circumstances, to the death of a spouse. Whatever the cause, the bargains are still out there to be purchased. The problem is finding them! Tenerife Property Investment has a team who are able to source the bargains you are looking for – often before they come onto the open market and are able to arrange one week inspection trips out to Tenerife in order to view the best bargains available on the market.
By way of contrast repossession property investment has been rather miss-leading to the potential purchaser and it is worth noting that because of the huge amount of complications involved, these are only available to the professional sector of the property market. Contrary to many people´s beliefs, the Banks are very reluctant to repossess directly from an owner as this was, in all likelihood, a customer of that Bank and this reflects badly on the Bank´s image.
When an owner defaults on their mortgage, the banks are legally bound to assist their client and this is normally achieved by the reduction of the mortgage to an interest only loan for a period agreed between the bank and the client. This will involve the production of a new contract which is paid for by the client. If then, the client fails to keep to the new contract the bank will normally pass on the property details to clients, informing them that the owners have a financial difficulty. This then becomes a pre-repossession property. If the client has been in default for many months then it is possible that the Court proceedings would take up to a year in order to gain permission to sell and redeem the outstanding loan or part of the outstanding loan. This is a particularly difficult area as any shortfall in the price raised by the auction against monies outstanding can be pursued by the Bank in order to redeem their loss.
The property would then have to be offered at auction and the auction is only offered to people who have lodged a guarantee by way of a certified cheque, which would be 30% of the valuation of the property. Tenerife Property Investment are happy to advise on any of these particular areas and offer a specialized approach in liaison with an abundance of advisors to provide an impartial and informed advice service. There are many bargains to be bagged and there has never been a better time to invest in property in Tenerife.
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