Foreclosure auction: secure your dream property below its value!

Foreclosure auction: secure your dream property below its value!

An interesting property in Cologne is currently the focus of one Compulsory auction. This is an object that is offered as part of a division auction in order to clarify common ownership between the parties involved. This special form of compulsory auction is often the case when, for example, after a divorce or in communities of heirs, no agreement can be reached. It allows co-owners to sell their shares in a property and receive a fair share of the sales proceeds.

The procedure is initiated by the creditor bank and aims to sell the property without commission for interested parties. In addition to the free provision of all important documents and information on the auction date, bidders have the opportunity to purchase the property below the market value of €255,000.00. The hammer is expected to be awarded from a bid of €178,500.00, although no guarantee is given for this estimate.

Details about the division auction

The Partition auction is specifically intended to share common property when amicable solutions cannot be reached. An important feature is that the applicant only needs to be a co-owner of the property to be able to apply for the auction. Unlike conventional auctions, the consent of all co-owners is not necessary. The legal basis is regulated by the “Law on Compulsory Auctions and Compulsory Administration” (ZVG).

The process is clearly structured: After checking the application, a minimum bid is set and the market value is determined by an appraisal. This way, anyone interested can place bids on auction day. The contract is awarded to the highest bid, making the bidder the new owner. However, it is advisable to seek legal advice to minimize financial risks and advise healthy alternatives.

Costs and risks

The costs associated with a partition auction can range from application and procedural costs to appraisal and surcharge fees. Therefore, good planning is essential to avoid unexpected financial disadvantages. You should also keep an eye on the duration of the procedure - on average it takes up to a year, but it can vary.

Alternative solutions to selling real estate, such as a private sale or a voluntary auction with the active participation of the co-owners, could also be considered. While this alternative may take more time, it offers the opportunity to achieve better results without the pressure of foreclosure.

Anyone interested in the property is advised to obtain all available information at an early stage and to be well informed about the procedure. The Implementation details and the exact process are crucial in order to avoid any missed opportunities. Anyone who would like to decide to take part in this exciting opportunity should provide all the necessary information and documents in order to process the request smoothly.