Banks in Spain finally coming to terms with Spanish property debt?

Posted by SpanishHotProperties 176 days ago (http://www.spanishhotproperties.com)
Category: World & Business | Tags: spanish property property in spain

It now seems that most of the Spanish banks are finally coming to terms with the huge amount of debt and for the first time in their history are preparing to write debt off according to the Spanish property experts Spanish Hot Properties. History has proven Spanish banks and property developers are very reluctant to sell at a loss and in previous recessions Spanish banks and developers have held onto property and sold when the market returned however this recession the banks are now finally coming to terms with the problems and realizing they will have to write off debt if they want to bring cash into their banks, well that is the opinion of Nick Stuart managing director of Spanish Hot Properties.

“Basically at the bottom end of the market Spanish bank repossessions especially Costa del Sol property is very uncompetitive where we have distressed sales at half the price of what the bank wants for there repossessions and its very clear it going to take some time for the excess stock to clear and the reality is as the best deals get taken from the market there could well be a lull before the market recovers fully with 2011 being the realistic earliest period for that. Some banks had set up property management companies but I believe the majority of them now realize that debt will have to be written off and some banks are already going down that road with a well known Spanish bank prepared to sell 500 units which have a debt of €120m Euros for €60m Euros and we are aware of some banks getting ready with special schemes for September to turn bad debt into what they call good debt” explained Nick.

Some of the so called Investor groups who were looking to do these deals a while ago are now getting cold feet and it may well be that some Spanish banks wished they had taken the deals when they were offered but only time will tell who is right on that particular score.

Spanish Hot Properties have wonderful opportunities for Investors who are ready to invest and the would encourage nay investor to contact them as a matter of urgency.

Anyone wishing to find more about distressed Spanish property in Spain from Spanish Hot Properties should either call us or email Spanish Hot Properties.

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