Why is a property put up for auction?

After a short summer break, here we are back with our insights on real estate topics.

Today we answer a question: "Why is a property put up for auction?"

Let's take inspiration from a post published on Facebook, which promoted a house for sale at auction, which caused quite a stir.

The debate focused mainly on the injustice towards those who suffer the expropriation of the property, and only one person during the discussion put himself in the shoes of the person who is no longer able to recover the money he had lent.

The creditor, perhaps many do not know, can be any person and not necessarily a bank.

The use of a judicial auction is not to be considered as an injustice towards the homeowner and we will try to explain to you briefly and in simple words why.

The house is put up for auction for a single reason, and that is due to unpaid debt.

The foreclosure of the house, however, is the third and final phase resorted to by those who have a credit against someone else.

The owner of the property is given a time in which to pay off the debt, and in the event that this is not paid, the court will initiate the procedure which will lead to the auctioning of his property.

In the following weeks, an appraiser will view your house and draw up an appraisal; based on it, the court will determine its value and set the auction date.

Unfortunately, the price will be lower than the real value of the property, and will drop to half if no offer is submitted at the auction. Unfortunately, this will mean that the debt may not be completely repaid.

In conclusion, what we would like to convey is that a judicial officer, before resorting to forced foreclosure, tries to recover the credit through systems that do not include expropriation.

Expertise Re provides consultancy for participation in judicial auctions.

For more information click here.

To view all our properties up for auction click here.

To learn more about the topic we post some useful links:

Real estate auctions: expenses in case of award

Buying properties at auction