Re: Re: Question following Moody’s article on bank-owned propert


Make no mistake the banks in Spain are in serious trouble. I spent all day yesterday with bankers negotiating a deal on bank owned property in a southern province. Currently they are repossessing more property than they can handle. Panic is starting to set in.
The problem with Spanish banks from a private investors position is that you cannot deal with the organ grinder direct. You have to speak to the middle ranking guy they send. He then has to pass offers on up to a chain of command. Then you wait weeks for an answer. Then it starts all over again. Very frustrating.
In one province alone in the south where I currently am, 60 developers have been foreclosed in the last 3 months. Half built developments lie gathering weeds. This may or may not present an opportunity in normal market conditions. However I am struggling to make any decisions. The sheer volume of current bank owned property is staggering. Common sense tells you it could take a decade or more to return to market norms. Its nothing short of a disaster for Spain getting worse with every passing day.