Buying a bank repossession is one of the alternatives we should consider when looking for housing. These are properties that, due to non-payments and foreclosures, have passed into the hands of banking entities. Opting for this option has many advantages for the buyer but also some drawbacks.
Reasons to buy bank repossessions
After the 2008 crisis, there were thousands of foreclosures, which caused banks to accumulate a significant stock of homes they must dispose of. That is why they offer some facilities:
Better financing conditions
Banks can offer up to 100% of the mortgage and longer repayment terms, which makes the acquisition easier. But they are not the only advantages related to mortgage loans; greater flexibility is also usually offered when requesting changes in repayment terms. Also, we won't pay commissions derived from the purchase.
Although prices have become equal to the market, you can still buy bank repossessions at somewhat lower prices. Periodically, banking entities launch offers to sell the properties they still have.
One of the expenses that a home buyer who wishes to apply for a mortgage must face is the appraisal of the property. In the case of bank properties, it is possible to save that cost.
Disadvantages of buying bank repossession properties
Although in many cases it is interesting to buy bank repossessions, there are some drawbacks too:
They may need a renovation
Those homes may have been empty for years or, on the contrary, have remained occupied non-stop. Whatever the case, they may suffer significant deterioration and require major renovations. Besides, that information is not usually available, such as who their owners were or how long the property has been empty.
They can have charges
Sometimes, homes may have pending sanctions due to debts with the Treasury or the community. It is worth checking it. It is also possible that the owner entity adds these debts to the price of the home.
One of the drawbacks of buying bank repossessions is the scarcity of offers. Therefore, it can be complicated to find housing in specific areas. Also, it can be even harder to find certain home types. Additionally, we must add that the offers sell out very quickly.
When is it worth buying a bank property?
Given that the prices of bank apartments are increasingly approaching market prices, it is advisable to carefully weigh the pros and cons before making the decision. Buying a bank repossession property is a good choice, especially in two circumstances:
• If you do not have a financial cushion to face the initial expenses of the sale, especially the 20% of the price that banks do not finance.
• If you find the right property, which would be a home at a competitive price that does not need renovation works or in a high-demand area.
If you desire to seek bank repossessions, you can find your dream home on real estate portals such as Spainhouses.net. Click here to search among a wide range of bank properties.