Foreclosure auction: sensible investment, experiences?

Hello everyone,

next month there will be a forced auction [Zwangsversteigerung] of a property in our area that is interesting to us. Basically, we don't see any major drawbacks. We would possibly want to tear down the wall to the guest room on the lower floor and then install a steel beam. In addition, the attic is to be converted into a bedroom (there are five of us). We think the heat pump is located in the attic. That might be a disadvantage.

Could the solar thermal system, which is outdated in the picture, but now the whole roof is covered, be used for electricity as well or only for hot water? Do you notice any other noteworthy points? How does the format [Zwangsversteigerung] work? According to the appraisal and a quick look from outside on site, everything looks great. But what if the family vandalizes the house shortly before the auction? Or refuses to vacate the house?

Are there any experiences with this?

Thank you very much!

Could the solar thermal system, which is outdated in the picture, now be on the entire roof,

On which picture? Forgot to attach it? And, how well do you know the property? Have you been able to see it from the inside as well?

Next month, a foreclosure auction of a property interesting to us will take place in our area. [...] What about the format of a foreclosure auction?

Find out. The foreclosure auction at which you seriously want to bid should be hardly less than your fifth.

Are there any experiences with that?

Until about 2014, you could still snag bargains at foreclosure auctions. 60 to 70% of the calculated value.

Notary fees are waived, but court costs are added on top.

If the property is perfect for you, there is the possibility (provided both creditor and owner agree) to cancel the foreclosure auction appointment.

This involves costs, and the creditor usually wants a guarantee from your bank in advance.

Please keep in mind that for good properties, young couples often bid as if there were no tomorrow.

Brain switched off, but parents or in-laws with enough money stand next to them and nod.

You can google what happens after the foreclosure auction.

Despite knowledge of human nature, I’ve of course had failures but have also often been pleasantly surprised.

Going there and ringing the doorbell in daylight was always my tactic. Park the car a bit further away in case they get aggressive.

No matter how you decide, please report back here about it.

I'll take these quotes..

Until around 2014, you could still make bargains at forced auctions.

I already couldn't have that experience here in 1998.
Either it was a rigged game between the bank and the seller, meaning nothing but expenses. A check issued for nothing or even at the rare viewing appointments there were water or habitation damages.

Please keep in mind that with good properties, young couples often bid as if there were no tomorrow.

… I've never experienced that. They either had no liquid funds at all to leave the 10%, no appetite for risk, let alone nowadays the gambler gene.


The still most reasonable houses are gone beforehand - no matter how!

The problem with [ZV] is that you buy a pig in a poke. An interior inspection is almost never possible. Additionally, there are two problems:
1. A good house is usually sold beforehand. Much more controllable for the previous owner.
2. The cooperation of the previous owners is usually questionable. They don't sell voluntarily. Accordingly, you can expect all kinds of surprises. Evicting the former owners after the [ZV] is still the lesser problem (compared to delinquent tenants). However, vandalism is quite common.

A few points regarding your specific house:
- Is the planned expansion of the attic even possible? A folding attic ladder is not an adequate access. For living space, you need a second escape route. Is there enough headroom at all?
- "We think" is a poor advisor. You have no idea and should always assume the worse case. If someone lets it get to the [Zwangsversteigerung], you can assume that hardly any investment has been made in the house. Anyone who is behind with the bank certainly won’t invest heavily. So no heat pump; more realistic is the 35-year-old oil heating system with an immediate replacement obligation for you.