Everything you need to know about Spanish seaside house bank foreclosures

Spanish bank foreclosures are becoming a popular option for investors looking to buy cheap property in Spain. Held by Spanish banks, seaside homes that are foreclosed by banks are generally very inexpensive. Buying a house under a bank embargo can certainly represent a real opportunity, but it can also be a risky operation.

To ensure the success of your project, Immo 365 on the Costa Brava will help you with every step of the way. Our team of experts has a perfect grasp of the nuts and bolts of buying a property in Spain.

Why are there so many bank repossessions in Spain?

Every year, tens of thousands of Spanish property buyers find it difficult to repay the monthly instalments on their mortgage on time. House repossessions, particularly of seaside homes, are therefore a relatively common occurrence. Several factors explain the presence of many bank foreclosed properties on the market.

A property bubble and a global economic crisis

Spain experienced a property bubble before the financial crisis that hit the world in 2008. This crisis peaked towards the end of the 2000s, in 2006 to be precise. At the time, the Spanish property market was booming. Prices were soaring, as were new builds and the number of bank loans.

With the subprime crisis in the United States in 2008 and its impact on global finance, this financial bubble unfortunately ended up bursting. This led to a drastic fall in real estate prices on the one hand, but also to massive house repossessions and major economic repercussions for Spain.

A housing glut

In the aftermath of the property crisis, Spain saw a fairly slow recovery in its economy. In addition to the properties seized by the banks, there was still a glut of new properties built during the bubble. Many properties such as seaside houses had not found takers. They ended up being seized by banking institutions in order to stabilise the market.

Where to find and buy seaside houses from bank foreclosures in Spain?

Bank seizures are carried out throughout Spain. A simple search on our real estate platform is all it takes. Our team specialising in the purchase of seaside homes will help you find the home that matches your desires.

You can use the search bar on our site or a map to geolocate the properties that interest you. Regions where bank foreclosures are common include Murcia, Catalonia, Andalusia, Marbella, Valencia and the Costa Blanca. If you want to invest in Spanish real estate and take advantage of buying conditions and attractive prices, call on our agency.

Many of you contact us to find out if there are seaside houses that have come out of bank foreclosures on the Costa Brava. The answer is yes. We also offer services in property sales and long-term rentals on the Costa Brava, but also in Rosas, Cadaqués, Playa de Aro, Empuriabrava, Tossa de Mar, La Escala, Lloret del Mar…

Before investing in a seaside house or apartment, open a bank account in Spain to make the process easier. Thanks to our collaboration with various Spanish banks, your banking procedures during this operation will be simplified.

Buying a seaside house in bank foreclosure in Spain: the advantages

Want to buy a seaside house in bank foreclosure in Spain? Here's what you need to bear in mind before embarking on such an investment.

The purchase of a seaside house in bank foreclosure has many advantages, but this operation also involves certain risks such as unresolved legal or structural problems. To make your investment a success, it's essential to be accompanied by a property professional who has a thorough understanding of the target region.

Are you looking for a seaside property on the Costa Brava or anywhere else in Spain? Contact us to speak to a property expert who can advise you. Our agency knows the Spanish property market like the back of its hand.

Take advantage of occasional discounts

Many banking institutions regularly launch bank foreclosure promotions involving embargoed homes. In these cases, the sale prices of these properties are well below the market price. Through Immo 365, you can get detailed information on the seaside properties in bank foreclosure that are being sold at promotional prices.

A valuation taken care of

The bank generally values all the properties it wishes to put on the market for sale. So to know the market value of a seaside home, you no longer need to pay for a new valuation, i.e. « la tasacion » in Spanish. Better still, you can get a free valuation of your property through our estate agency on the Costa Brava.

More payment flexibility

For banking institutions, it's vital that the new owner can meet all the mortgage repayments. For this reason, they usually offer more flexible repayment contracts. In some cases, the borrower only has to repay the interest and the amortisation rate on the loan in the first few years.

Are you a non-resident looking to resell a property purchased in Spain? Immo 365 can also help you with your tax affairs. We can provide you with a non-resident property capital gains tax calculator for Spain to find out the amount of tax you will have to pay and ensure that you are in order with the Spanish tax authorities.

Whether you are buying or selling, our property specialists will be there to help you.

Buying a seaside property in bank foreclosure in Spain: points to watch out for

Although seaside house foreclosures represent potential opportunities for investors, it is necessary to take a few precautions before diving in headlong.

Transactions involving seaside houses in bank foreclosure are often administratively complex. So it's essential to be patient and call on the services of competent professionals like Immo 365. Some foreclosed properties have been on the market for a long time. Some properties may be in poor condition. You should therefore take renovation costs into account when making your purchase.

Before anyreal estate purchase of a property in bank foreclosure, also check that there are no associated debts. Consult the land register for the house by the sea and the certificate of community debts. The bank must provide you with these documents. By using an estate agency like Immo 365, you have access to all the documents that can help you make the right decisions.

When you want to buy from private individuals in Spain, you can also face situations such as building defects, lack of registration in the register or town planning offences. At Immo 365, we take care of these technical checks to make things easier for you and help you buy a home that meets your needs and expectations.