...Distressed Market Lags Behind: The gradual recovery seen in the Spanish residential property market has had limited, if any, effect on distressed properties subject to foreclosure. Fitch Ratings expects this situation to persist, as legal and operational complexities, mainly concerning vacant repossessed properties and overall market imbalances, lead to lower final sale values. Data for 1H15 suggests that sale values achieved by servicers and lenders on residential properties taken into possession are 67% lower than the initial appraisal values....