A house foreclosed on by a bank or a state institution, through a bailiff, can be purchased at a much lower price than the market price.
Participation in foreclosures offers the opportunity to purchase goods and real estate at prices that cannot normally be sprayed, but possession can become difficult in some cases. Thus, it is very important to be informed before this approach and to know the rights and obligations before participating in such an auction.
Forced foreclosure homes or apartments can be found relatively easily on banks’ websites or through advertisements published by bailiffs. In order to be able to participate in such an auction, be they objects or real estate, 10% of the value of the executed well must be deposited in the executor’s account. This money is a down payment and will be refunded if the auction is not won. The price of a good sold at auction starts from the one displayed by the executor in the sales publications but may increase if a higher bid is registered for that good.
The debtor, respectively the owner of the executed good, can assist, but cannot participate in the auction, neither in personal name nor through intermediaries, and cannot intervene in any way on the auction of the respective good. The participants in the auction are also obliged, under the law, to comply with certain provisions. According to art. 246 of the Code of Criminal Procedure, “the act of removing, by coercion or corruption, a participant from a public auction or the agreement between the participants to distort the adjudication price is punishable by imprisonment from one to 5 years.”
Forced goods are auctioned off several times until they are sold. If a good is not sold at the first auction, a new auction will be held and the starting price for that goodwill drops to 75% of the original value. If the sale is not made at the starting price or at the second auction, but there are at least 2 interested buyers, the good will be sold to the buyer with the highest offer, but the final price of the good cannot fall below 30% of the starting price. the first auction.
Once the auction is won, the handover process begins and, of course, the payment of the purchased goods. It is very important to never bid for a good that, in the end, cannot be paid. You can run out of goods and pay dearly for this mistake.
The successful bidder or winner of the auction will have 30 days to pay for the purchased good. If the auction is won, but the purchased goodwill not be able to be paid, not only will the guarantee of 10% of the previously submitted price be lost, but the respective person will be obliged to bear the costs of organizing a new auction and possible price difference.
Once the real estate property is paid, the new owner takes possession. In the case of real estate, taking possession can be quite expensive for the buyer. It must be borne in mind that the one who will bear all the costs of the transfer is the buyer. The legislation states the following: “the expenses occasioned by the transfer of ownership will be borne by the buyer-adjudicator”.
Moreover, the buyer is the one who has the obligation to evacuate the property and will bear all the expenses incurred on this occasion. Thus, taking possession can become difficult in some cases and for this reason, many of the properties sold at auctions are still inhabited. Forced foreclosure owners, in most cases, will not easily give up the house in which they lived or any other property lost in such conditions. Often, such a procedure is followed by processes requesting the suspension or cancellation of enforcement.