Court auction is an auction which takes place at a public location designated by the court.
If a property owner fails to pay the mortgage, the mortgage holder can foreclose on that property. If the owner is unable to make sufficient payments, the property can be sold at auction. The time and place of the auction is published in official records.[1]
In case the value of the debt being foreclosed on is substantially less than the market value of the real property, this can finish the trouble for the debitor by paying all the credits.[2]
Germany
editIn Germany the court may suspend the auction for 6 months on the debtor's justified request. Justification may be hardship, e.g. if debtor has a physical disability and cannot find adequate housing. The creditor can object up to twice if the result of the auction is not sufficient to fulfil the claim. The bidder must deposit security in the amount of 10%. The highest bidder becomes the owner of the real property. If the claim is greater than the market value of the real property, debts are handled in an insolvency proceeding.[3][4]
Spain
editSpanish mortgage holders are responsible for the full amount of the loan to the bank in addition to penalty interest charges, and court fees. A bidder must pay 5% of the valuation price to participate.[5][6]
United States
editHistorically, the vast majority of judicial foreclosures have been unopposed, since most defaulting borrowers have no money with which to hire counsel. The highest bidder at the auction becomes the owner of the real property, free and clear of interest of the former owner. In 2009 there was a growing consensus that the deepening collapse of the housing market was at the heart of the country's acute economic downturn. The rules for court auction differ in the states. Usually the auction takes place at the property location and online in other instances. In US auctions are free to participate without a broker.[7]
See also
editReferences
edit- ^ "Foreclosure Process/U.S. Department of Housing and Urban Development (HUD) | HUD.gov / U.S. Department of Housing and Urban Development (HUD)". www.hud.gov. 20 September 2017. Retrieved 2021-05-16.
- ^ "BUYING A FORECLOSURE HOME AT AUCTION". www.auction.com. Archived from the original on 2019-05-23. Retrieved 2021-05-16.
- ^ "Act on Enforced Auction and Receivership (Gesetz über die Zwangsversteigerung und die Zwangsverwaltung)". www.gesetze-im-internet.de. Retrieved 2021-05-16.
- ^ "Information how to buy Property and Real Estate from Foreclosure Auction in Berlin Germany, German Property Tax, German Notary Public, How to buy Property in Berlin, Bank Auctions, Bank-Owned Property for Sale in Berlin and Germany". noack-immobilienberatung.de. Retrieved 2021-05-16.
- ^ Criado, José Francisco. "SPANISH COURT AUCTIONS | CriadoKraus.com". Retrieved 2021-05-16.
- ^ "Rules in a Spanish Court's Auction for bank repossession of mortgaged properties | Emilio Pino Lawyers". 2017-04-25. Retrieved 2021-05-16.
- ^ "US Dept of the Treasury Seized Real Property Auctions". www.treasury.gov. Retrieved 2021-05-16.