Bank repossessions continue to fall in Spain. In Q3 of 2017, 1,584 repossessions on principal homes took place, 59.8% fewer than the same period in 2016. 487 repossessions were carried out on second homes, 54.3% fewer.
Spain is no longer experiencing an annual rise of 10% in repossessions. Repossession procedures – the order to sell the property to a third party because of mortgage default – were started on just 0.01% of the 18.5 million homes in Spain in Q3.
Most repossessions carried out nowadays continue to be on homes with mortgages taken out before the property bubble burst. In Q3, 19.8% of repossessions were on properties with mortgages approved in 2007, 16.5% with mortgages approved in 2006 and 12.1% in 2008. 59.5% of repossession procedures started in Q3 were for the years 2005-2008.
Resale properties amounted for most repossessions (78%) in Q3. However, the number of embargos on new builds went up by 24.4% in the year, while those for resale properties went down by 48.7%.
In regional terms, Andalusia with 1,425 repossessions was the highest, followed by the Comunidad Valenciana (915) and Catalonia (677). At the other extreme, Navarra with 11, the Basque Country with 19 and La Rioja with 31 had the least.