Number of houses in banksaa‚¬a„¢ properties on the up

Newsroom 18/10/2010 | 16:37

Several hundred properties have ended up in the possession of financial institutions after they did not sell during the forced execution procedures. In the future, the number of properties taken over by the banks will be several thousand, according to Coldwell Banker Affiliates of Romania, quoted by Mediafax.

“We estimate banks will take over several thousands homes and apartments, after they have already entered into the possession of several hundred. The sale process will be a difficult one for lack of an adequate strategy which should also include an ample promotion,” said Valentin Ilie, CEO Coldwell Banker Affiliates of Romania.

Before it becomes the bank’s property, an un-performing real estate asset must go through the forced execution procedure and is taken out for bidding, which takes at least several months. After several attempts to sell the property fail, it goes into the possession of the financing institution which will also attempt to either sell it or rent it to obtain revenues.

Coldwell Banker Affiliates of Romania is promoting the sale of a portfolio of 100 properties seized by financial institutions through its specialized division Coldwell Banker REO Experts.

“We are in discussions with several financial institutions to administer and mediate the sale or renting of the seized properties. If banks take out for sale several thousands of houses there will be a blockage since the offer will surpass the demand in certain areas. However, for a price that is 10-15 percent lower than the average market price and with a fitting sale strategy, we estimate several thousands of dwellings could sell in 2-3 months,” said Ilie.

Otilia Haraga

 

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