Forced auction - land claims by two parties

You can also register a land charge of over a million on a garage. It doesn't really make sense, but no one forbids you from doing so.

You can also have a mortgage of over a million registered on a garage. It doesn't make sense, but no one forbids you.

That's clear, but you won't get a loan for that amount and no one will go into second position either.

I think Eva2015 wrote that a bit awkwardly. The claims do not apply to the property but to the previous owner.

Example from practice:

I bought an apartment at auction, the market value was 90k, I bought it for 120k! And the claims mentioned at the auction amounted to a good 250k! The previous owner was a businessman and the main creditors were the bank and the tax office.

Now the court takes the 120k paid at auction and distributes it to the creditors; the remaining debt of 130k is still the problem of the previous owner. If he can pay it off bit by bit, that’s good for him; if he can’t, he goes bankrupt...

Cheers!

I bought a house by forced auction in 2010.

to note:
- you have to deposit a security payment in the form of a guaranteed bank check amounting to 10% of the market value. The check costs money. depending on the bank it costs more or less. it can be 5-10% of the value of the check... IMPORTANT: the check is only valid for a certain period. if you don't use the check, too bad, the fee is lost.
- cash deposits or bank statements or even phone calls with the bank are USELESS.
- if it is such a popular building area, be prepared that professionals are involved. that means realtors, developers who know their stuff and have experience. the market value will then definitely be outbid.

I was lucky at the time, I talked to the developer/WBG who was there and also bidding, and so they dropped out.

At that time there was even a lifelong right of residence registered for the parents of the debtor on the house/land, or on an apartment (2-family house).
In such a case, the judge normally runs a two-track process. there is then in the expert report a value that the right of residence has. this is then deducted from the market value. One bidding sequence is then:
a) house + right of residence: market value - monetary value of the right of residence = new market value
b) house + right of residence deleted = market value of the expert report
then the creditors are asked if they prefer one form. Usually the claims exceed the sales value for option A) therefore option B is usually preferred.
then the judge asks if anyone wants to bid on option A). normally nobody wants to have someone live in their house for an indefinite time who doesn't even have to pay rent, and who will probably make your life hell because you bought his or the child's house.
so option B is usually applied as the main procedure.

How long does a foreclosure auction usually take?

I find it annoying when you can’t get into the house beforehand. If it then goes above the market value, you really bought a pig in a poke (or a needle in a haystack).

I’m thinking about going to watch a foreclosure auction sometime.....

I highly recommend that you watch a foreclosure auction sometime, it’s really an exciting experience! Especially before you bid on a desired item at an auction, I would go to several auctions beforehand to get used to the whole thing and observe how people behave when bidding. An auction lasts at least 30 minutes and only ends when the highest bid has been made and no one outbids it: 3, 2, 1, sold for... to...