As taken the property from Bank debtors?
If the borrower does not exercise any of loan payments for six months, not responding to requests, entreaties and even threats of the creditor, the Bank sued a debtor in court. If the court understands that the borrower does not want to or are unable to resolve between the two sides of the conflict, he will side with the Bank and will oblige the debtor to repay the loan assets. If the loan was collateral, then the Bank sells collateral and due to the proceeds from the sale of the funds will make their money back with interest. If the loan was issued without collateral, the bailiffs will come to the home and the borrower will take all that will fit, and if the amount of debt is too large, then this property may be a house or apartment owned by the borrower. It is worth noting that the Bank is interested in is liquid assets that can easily and quickly sell. The borrower's consent to the alienation of a property no one to ask will be gone.
To put mortgaged property for sale the Bank does not always require a court order, in some cases it will be enough just the Executive signature of a notary. On the basis of this document, the Bank shall apply to the state Executive service and sells collateral through special trade organizations.
How to buy a distressed property at auction?
In order to be able to participate in the auction, which will sell the property, finding a Bank in the mortgage, the buyer must pay the registration fee from 3% to 15% of the value of the property sold. If on the first auction of the collateral was not sold, then the next bid, its price will fall by 15-20% from initial value. The result of the auction is considered valid only if they involved no less than 3 buyers.
Purchase of collateral banks – possible risks
The undoubted advantage of buying the collateral of banks is its low cost, but it is perhaps its only plus. This low cost is due to a number of problems that may arise from the buyer in the future.
If residential real estate sales under the scheme, a property owner may not know about the sale, and the buyer risks to get in addition to angry residents, to evict from which acquired housing have their own. The same problem may occur when buying a car, formerly a Bank in the mortgage.
When you purchase a car at auction there is a risk of a defective product. To be able to sell a car at auction, the Bank will declare him wanted, the traffic police find, confiscate and put on the Parking lot where the vehicle is sold in the form in which it is, with no keys, documents and possibly in poor condition.
By purchasing the collateral banks should be prepared for the fact that you can do to stay without buying. So, the borrower can return the collateral back, if it considers that it is implemented at too low a price. Or, for example, to challenge the sale of the property can the spouse of the borrower, demanding part of the amount as alimony payments, etc. If the buyer loses the purchased property auctions, spent on its purchase money will have to return through the courts.