Monthly Archives: October 2010

Extended crisis: fall in mortgages and more repossessions

The country will not recover from the property crisis in 2011 and certainly not until 2012 or 2013 at the earliest. Moreover, some pessimists like the IMF, forecast a long period of crisis up to 8 more years. The latest data does not give room for hope. The mortgage market is getting tighter and tighter in Spain. The rate has dropped in 4 consecutive months since May 2010 compared with the same

Homebuyers trapped by Banks Swaps Strategy

It could be dozen of thousands of Spanish mortgage borrowers who have been affected by Swaps products commercialized by Spanish Banks between 2007 and 2009. So far, there are more than 4,000 already registered as affected, but only Banks know how many there are. La Caixa, Santander, Bankinter, Caixa Galicia and BBVA are the ones that most widely sold this product.     Spanish Banks ha

Finally the market shows its bargains: 50% off in cities

Banesto is the first Spanish Bank to launch a really positive campaign to sell units in city areas at prices of crisis. Surely there are good bargains and we hope the rest of the Banks will follow the move soon. Banesto has announced to start commercializing today a total of 600 properties in urban areas at half price of the market value. The first lot of properties is a 50 units package at

Developers admit that ˝toxic properties˝ should be demolished

For the first time in Spain, property developers have recognized in public that it could be better to demolish developments that were built up in the Spanish property boom and will never be sold. It was a public statement announced last week in Valencia during a seminar run by the Asociación para el Progreso y la Dirección (APD). The idea to demolish non-marketable developments is not new - in I

Quick guide on how to recover down payments for home purchases

Imagine somebody buys a Spanish apartment which has still not been completely built. When signing the purchasing contract the buyer pays to the developer a down/ advance payment of several tens of thousands of euro. Several months after the agreed upon delivery time the developer has already finished building the apartment but he has still not obtained the first occupancy license (authorization is