Repossessions in Spain do not work in the same way that they do in the UK. In fact there is quite a difference in the duty of care that Banks have to show when selling repossessions.
Most Spanish Repossessions are dealt with by the individual branches of the Banks in Spain and very often the properties are sold to the first bidder whose bid is high enough to clear the debt on the property. This debt is not just the Mortgage on the property it could also be the total sum of any recovery costs and any taxes owed.
In the UK the process is very different. The Banks and Building Societies are duty bound to get the highest offer on any property that they repossess and there are rigorous rules in place to ensure that this procedure is followed.
Of course repossessions are not the only form of property that needs a quick sale.
Distressed properties are houses or apartments that need to be sold quickly by the Vendors themselves. Usually they have either stretched themselves financially or simply do not have the funds to complete the purchase.
A typical and increasingly apparent reason for a distressed property sale is where someone or a syndicate of people have put a 20%-30% deposit down on a new build property that they hope to sell before the project completes.
Unfortunately with the Spanish property market becoming swamped with apartments that are just about to complete it is not so easy to sell them. The investors who put down the deposit get more and more anxious to sell as the developments completion looms and if they are unable to complete the purchase themselves they are normally very happy to pass on their property to you at a reduced price rather than loose their deposits.
