Why is a house put up for auction? Home is your primary asset , your nest , the only place where you truly feel safe . Yet, it may happen that in particular circumstances, such as in a delicate moment in your life,
you suddenly find yourself overwhelmed by debts and find it difficult to pay even
the mortgage on your home, a situation that, if prolonged over time, can lead you to lose it .
And this is why it is always better to first know all the dynamics for which a house can be auctioned, so as to know what to avoid to prevent this from happening.
A house is put up for auction because it has been foreclosed by
the bank or anyone who has a claim against you, which they try to recover through
the forced withdrawal of the property, which is then put up for auction.
What is foreclosure?
The foreclosure is the deed, which is notified to you at home by a bailiff,
with which the procedure for the forced expropriation of your property, movable or immovable,
begins , in consideration of the fact that you are a debtor insolvent. When your home is foreclosed,
we talk about a real estate foreclosure .
The foreclosure also applies to the first home and even if you have a minor or an invalid in your charge , since it is an expropriation and not an eviction.
When does the foreclosure take place? The deed of foreclosure is, in reality,
the third and last phase of a procedure that has been initiated by those who have a credit against you
and have, as their only goal, to recover what is due to them, getting back on your home. .
The two phases preceding the foreclosure are:
- injunction : the first act by which the Judicial Authority, following the request of the creditor,
orders you to pay, within 40 days, the sum to which your debt amounts,
in addition to the expenses and interest accrued;
- precept : the second judicial act that comes to you from the Authority
if you have not made the payment or you have not taken any type of action,
following the injunction. The time available to pay your debt is only 10 days from receipt of the deed.
Auction house: what happens after the foreclosure
What happens when your home is foreclosed and you receive the notice of foreclosure?
In a short time, an expert comes to inspect the house and draw up a detailed report certifying its current conditions and defining its value.
Subsequently, the court sets the auction date , determining the minimum price ,
based on this expert opinion. Unfortunately the price will be lower than the real value of the house.
If no offer is made on the property during the auction,
we are talking about the so-called deserted auction , the court will have to lower the price of the house, up to 25% , even reaching 50%, after the fourth failed sale attempt.
By significantly lowering the price of the house,
the property is sold off at auction and it will be impossible for you to cover the entire amount due ,
so you will still have to pay the remaining part of the debt in another way.
During the auction period, you are still the owner of the property and can
continue living in your home until the transfer decree arrives .
The decree of transfer of the property is pronounced by the execution judge.
this decree, the ownership of the property sold at auction is transferred directly to the successful bidder,
who, to all intents and purposes, is the new exclusive owner of the house.
Furthermore, the transfer decree, which is itself an enforceable title,
obliges you (injunction) to immediately vacate the home you still occupy. In case you refuse to leave the house,
the successful bidder can initiate a procedure to obtain the forced release of the property through the bailiff .
Today, in our Gabetti agencies , thanks to the presence of the Astasy Points,
It is possible to speak with one of our real estate execution specialists , who can help you if:
• your home is at risk of auction and wants to free you from debts,
Through the settlement and excerpt procedure ;
• you want to discover and buy properties at auction in the area that interests you most.