Return properties in the hardest-hit economies inEuropesold at greatly reduced prices. According to the international rating agency Fitch, about half of the cost is losing the house, returned for the debts or because of non-payment of the mortgage.
The greatest losses in value are observed inPortugalandSpain, where the discounts start at 35% and reach 50% of the original estimate. It demonstrates the poor condition of real estate market, the high indebtedness of the borrower and the unavailability of new mortgage loans.
The biggest problems now are related to mortgage loans at the peak of the property market inSpainandPortugalin 2005, 2006 and 2007.