Costa del Este, Panama City
Unit 37C, Floor 37
Deal Assessment
This unit was acquired at a 24% discount to fair market value through a bank REO (Real Estate Owned) sale following foreclosure proceedings. The discount is legitimate and well-documented through Registro Público records. The current buyer financed at 80% LTV with the same bank that foreclosed (Banco General), which signals institutional confidence in the asset quality.
Valuation
Estimated FMV
Ownership History
Financing
| Bank | Amount | Rate | Term | LTV | Year | |
|---|---|---|---|---|---|---|
| Original Mortgage | Banco General | $272,731 | 6.00% | 30 yr | 70% | 2014 |
| Current Mortgage | Banco General | $256,000 | 6.00% | 30 yr | 80% | 2024 |
Same bank for both mortgages. Banco General foreclosed on the original borrower and re-financed the subsequent buyer at a higher LTV (80% vs 70%), indicating confidence in the collateral value despite the foreclosure history. The current mortgage amount ($256,000) is 39% below the estimated fair market value ($420,000).
Risk Assessment
The unit was acquired through a foreclosure auction (remate judicial). While bank-owned properties can carry encumbrance risks, the title has been fully transferred post-remate and is now clean per Registro Público records. The fact that Banco General re-financed the new buyer at 80% LTV confirms the bank considers the title unencumbered.
The previous owner defaulted on the mortgage after 8 years. Owners in financial distress frequently also fall behind on condominium maintenance fees (cuotas de mantenimiento). Buyers should independently verify with the building administration that all fees are current. Outstanding condo debt can follow the unit, not the owner, under Panama's Ley de Propiedad Horizontal.
Two separate embargo filings (July 2022 at $355K and March 2023 at $364K) indicate a contested debt resolution process before the bank ultimately foreclosed in February 2024. This is typical for bank proceedings in Panama but suggests the borrower may have attempted to contest the foreclosure. Both embargos are now resolved.
Price History
Market Context
Transparency
FMV is computed using building-level comparable sales from verified Registro Público transaction data. The model uses median $/m² from same-building resales, adjusting for floor premium and unit size. Developer sales (initial transfers) are separated from secondary market transactions to avoid skewing resale estimates.
The B+ grade is derived from a multi-factor scoring model that evaluates transaction volume, price stability, rental yield potential, and building age. Grades range from A+ (exceptional) to F (significant concerns). The grade reflects overall building quality, not individual unit condition.
High confidence. This assessment is based on 59 comparable transactions in the same building. Buildings with 30+ transactions produce statistically reliable valuations. Transaction data is sourced directly from Registro Público, not listing prices. The confidence level refers to valuation accuracy, not a guarantee of future market performance.