Why is it hard for banks to get rid of foreclosed apartments?

The prices of Bucharest apartments auctioned by banks are just 7% smaller than the ones owners ask for. Whereas owners can agree to cut prices during negotiations, in the case of auctions purchase prices can be even higher. People looking for a bargain through the acquisition of foreclosed apartments auctioned by banks should keep a close eye on websites so as not to miss the few truly profitable offers, in the context where, on average, banks' prices are just 7% smaller than those asked by Bucharest owners, reveals a ZF survey. In the case of auctions, if no buyer offering the asked price comes up at the first term, the price is cut by 25% at the second term, after which it can remain unchanged during the following auctions. Hence, banking executors reckon they have some properties older than one-two years in their portfolio, and clients are not rushing to buy. "There are people attending auctions, but the volume of deals is no longer as high as last year's for instance. The reason is linked to this financial collapse. As a result, people are short of money. Auctions are repeated as many times as necessary for the properties to be sold," explains Marian Stancu, a banking executor with OTP Bank.