A 20% jump in residential mortgage transactions

Only over the past few months, the sellers of mortgaged real estate increased by 20%, according to the analysis of the Address real estates company. The trend for placing increasingly similar tenders on the agenda was confirmed by other experts in the branch. For the period April-August 2011, financial difficulties were the main cause for over 45% of sellers losing their apartments, reported the Address company. The repayment of mortgage loans made 24% sell their properties. The same percentage of sellers decided to seek a buyer for their real estate due to difficulties in the disbursement of consumer credits.

"Sellers in financial hardship increased by over 20% during the last few months," confirmed George Pavlov, Executive Director of Address Real Estate.
There is general growth in sales of mortgaged properties, which started two years ago, commented also Teodora Dimitrova, Executive Director of Era Bulgaria real estate agency. In this period, the majority of tenders seemed to be of properties at very high prices, although there were successful transactions. Which meant that owners decided to sell too late - after they had already become indebted with 5-10 loan repayments which significantly raised their liabilities to banks. Thus, flat price increases are above the average market value and transactions become difficult, explained Dimitrova.

People experiencing difficulties in repaying their mortgage loans sell real estate worth €50,000 - 70,000, normally for the sale of two- and three-bedroom apartments, according to Address Real Estate. There are many cases of sales of one-bedroom flats worth up to €50,000. The profile of the average seller in financial difficulties is a a middle-aged man (31 - 40 years old).

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