Having invested so much in the still unfinished projects, developers were being faced with disaster as the banks tried to recoup these funding loans. Also the once fruitful sales market crumbled with the end to the cheap mortgages and those who had already bought found themselves in trouble as interest rates rose. A second problem was the weakening pound against the Euro. This exchange rate crash removed one third from the value of any funds brought over from the UK, including pensions. With that and the increase in interest rates a great many were no longer able to keep up their mortgage payments and watched with horror as the Banks moved in.Foreclosures and repossessions are on the rise throughout the Costas. With countless thousands of unsold Apartments and Villas sitting empty the rental market has followed the sales crash. It is now a buyers market through and through. With foreclosures getting ever closer, countless owners are desperately trying to unload their properties at a fraction of their normal value. Now with the risk so great there are few prepared to buy. That leaves the door open to investors in this new marketplace –
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