Number of homes handed back to Portugal’s banks falls by half

The Association of Professionals and Real Estate Companies of Portugal (APEMIP) has estimated that about 2,500 properties were handed back to banks to settle owners’ debts last year, a decrease of 54.5% compared to 2012.

Lisbon and Oporto remain the most affected areas in the country.

Luís Lima from APEMIP said the fall in the number of homes delivered to the bank is explained by the greater desire by banks to renegotiate mortgage terms and he sees this as a positive sign.

Owners argue that the nation’s banks, currently awash with tens of thousands of hastily repossessed properties, only recently have started to engage with their customers, hitherto treating them like the undead.  

The number homes being sold in Portugal unsurprisingly increased last year compared to the barren 12 months of 2012, but not as many as his Lima’s members would like as the desire to return to the pre-2008 boom years is a great motivating factor.

In the opinion of the President of APEMIP, the property market has an excessive tax burden and the government has failed to explain to the Troika the situation of many property owners in Portugal.

In the opinion the government the property market has an entirely reasonable tax system.

The members of APEMIP could easily reduce their 5% standard commission rate if they feel the costs for their customers when selling a property are excessive.

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