Yesterday I had a meeting with Bancaja Habitat the development arm of Bancaja, Valencia’s Savings Bank. I came out very happy despite the 30 odd degrees heat that was making me wilt. Basically they have something called HPI’s. An HPI is a property that they are helping to sell for the current owners at debt price because the owner has problems paying the mortgage quotas.

What this means compared with repossessed property is less likelihood of the property having been trashed, more cooperation from the owners and also, and possibly most important the ability to negotiate the price with the bank in the style of an American Short Sale, ie debt price 200k you make an offer of 160k an the bank may well accept.

They are also offering preferential mortgage terms for those who pick up a property with 80% finance for non residents and up to 100% for residents and Spanish nationals depending on ability to pay. First year mortgage rates are good too as are the ongoing rates being base plus 1%