Buying a Bank Repossession

Bank repos are usually non negotiable. The price is the price. My understanding is that you can put an offer in under the ask price. But you have to wait on the bank staff to review this ,(don't hold your breath) and you might get lucky

Thanks very much for your response.  If that's the case I think the property is not well priced as it seems to need a lot of work!

Another thing, being a cash buyer is no advantage as that can make things more complicated as you have to demonstrate the audit trail of the cash for anti money laundering procedures. I am semi retired with three part time jobs, so that's me having to look out 12 payslips for the last three months income among other things. The amount of hoops I have to jump through is unbelievable. My advice is get a good English speaking Spanish solicitor (abogado) and get the power of attorney sorted out asap if your not going to be there in person for concluding the purchase. 

Another thing to take into consideration is the fact that most bank repossessions are because the bank's client hasn't kept up with the mortgage payments, so the bank needs to sell the property to recover the mortgage debt on the property. They prefer that the person who buys the property takes over the existing mortgage, which is how they make their money. They're not in the real estate business and just want people to continue to take out mortgages with them.

Ive bought two bank repos both repossessed from the builder and offered 5% below asking and accepted.The paper trail needed for your cash is ridiculous you just have to go with it if the property is worth it!

Good Luck.

Thank you very much I hadn't though about a paper trail at all!

Thanks for the info!

Thanks Crissywissy, 5% seems low enough of a reduction, will keep that in mind.

We've recently completed purchase of a bank repo in Roda village that had not been lived in.  Our experience was the same as other posters, not much room for negotiation and satisfying the audit requirements for the anti money laundering can certainly be a challenge.  You need to prove where the money came from in the first place and then show evidence of money leaving your account, going through money transfer provider and arriving in Spanish account (we used Currencies Direct but you need to compare rates, fees etc as these can make a big difference with large amounts).  As others have said important to get a good English speaking lawyer and POA sorted if you want them to open bank accounts, set up utilities etc.  Re. your concerns about the price and the property needing a lot of work, it might be worth looking at the price of similar properties and see if the price difference is enough to make the cost of the work worth the investment  For us the cost of the repo, new appliances and new furniture was a bit less than the cost of buying a furnished 'lived in' property (and you get all new stuff:-)) Might also be worth checking the purchase tax %.  I'm not sure but i think it might be less for new/unlived in properties.  I'm sure somebody will be able to confirm.