[size=75:1y0ued42]novinite 7 January 2010

Scores of Bulgaria Beach Hotels Face Foreclosure

Scores of luxury hotels and apartments on Bulgaria's southern Black Sea coast are listed for foreclosure by private law enforcement officers.

In the last few months over 100 properties have foreclosed over their owners' overdue mortgage payments to banks and debts to businesses, the Bulgarian TV channel bTV reports.

For example, in just one building in the town of Nessebar, 3 apartments are listed for sale by a private law enforcement officer and belong to one owner, who is unable to repay the mortgage. There are other similar cases in the same quarter, which is filled with new construction despite the fact that it is yet to be included in Nessebar's general urban plan.

Foreclosures are also listed in St. Vlas, Ravda, Sunny Beach, and Sozopol.

Most of the debtors are construction contractors, unable to sell the properties over the economic crisis, but there are private individual owners as well, who have difficulties repaying their mortgage.

Foreclosed properties also include those of foreign owners, mostly British and Irish.

Only 15% to 20% of the foreclosed listings end up being sold because even professional appraisers cannot estimate their market price. The requirement that the buyer must deposit the money in cash in 7 days after the sale also impedes the purchases. There is a discussion of the possibility to give buyers the opportunity to repay the initial mortgage.