Property repossession in Marbella have risen eightfold in the last year, as the economic crisis and property market downturn push over-stretched owners onto the ropes.
According to the local press, foreclosures have risen from one a month in first quarter of 2007 to eight a month on average today.
“The worst is yet to come,” a judge in Marbella is quoted as saying.
The majority of repossessions to date are reported to involve foreign or expat owners of holiday homes and investments. This complicates the repossession process, as in many cases contacting the owners is proving difficult.
Mortgage lenders typically start the repossession process when borrowers default on 3 or 4 payments, and the process can end in a public auction.
More information on the property repossession process in Spain