Forced sale: online portals for buyers, local court list and tips
Compulsory auction – Your goal is to acquire a property as cheaply as possible? You would like to participate in a forced sale, but you always lack the information when and where a forced sale takes place? Put an end to it!
Foreclosure auctions – How you can always be part of it
We at Lukinski have listed for you how you will never miss an appointment for a foreclosure auction again. No matter from which part of Germany you come, we have the right address for you. And one more thing: We give you our tips on how you can best prepare for an auction date.
You’ve always wondered how friends or acquaintances who bid at foreclosure auctions knew when and where they were taking place? From now on, this will no longer happen to you. In the meantime, there are even Internet portals that show the foreclosure auctions divided into the different federal states.
Trust the official portal:
Foreclosures are posted at www.zvg-portal.de
List of all local courts in Germany
If you should not have the possibility on the different Internet portals after a suitable real estate to investigate, then there is also still another possibility of these dates to experience. The dates of auctions must be recorded as a notice in the competent district courts. In addition, the auction must also be recorded in the official gazette and can also be in a newspaper. If you do not know which local courts are in your area, there is a list of all local courts in Germany divided by federal state.
More information on foreclosures:
Tips for preparing for a foreclosure auction
To achieve the success you want at a foreclosure auction, you should prepare thoroughly. It makes sense to look at the foreclosure process several times before you attend a foreclosure auction yourself. The second step is to start looking. Look for offers that correspond to their interests by also activating the search filter on online platforms and do not waste time unnecessarily.
Then, once you have found a property that appeals to you, it is important that you gather enough information about the property. The most important information you can gather:
- Review market value appraisals
- Examine land records
- Note the file number of the object to obtain even more information
- If possible, arrange viewing appointments
Develop financing concept & follow preparation tips
It is particularly important that you come up with a sensible financing concept. Make sure that you don’t let yourself be distracted from your pre-determined highest bid in the heat of the moment, so that you don’t get into financial difficulties afterwards. However, before you bid at a foreclosure auction, you need to make sure that you can put down a security deposit. The security deposit must be 10 percent of the fair market value and must be paid to the court cashier before the auction. The total price of the property must be paid four – six weeks later.
If you follow these preparation tips, nothing will stand in the way of the auction of your dream property. Now all you have to do is bring your identity card or passport to the auction so that you can identify yourself.
Read also:
- Foreclosure explained
- Prevent foreclosure
- Foreclosure Submission
- Receivership
- Compulsory mortgage
- Tip! This is how an auction works (external): Compulsory auction procedure
Procedure of a forced sale – Video
Risks of a forced sale – You should be aware of these risks
Most people who attend a foreclosure auction hope to get a bargain. However, this is not always guaranteed. There are risks involved in a foreclosure auction that you should be aware of. Here, we have compiled possible risks for you so that you can be prepared in the event of a foreclosure.
Personal viewing rarely possible
Before participating in a foreclosure auction for a property, it is important to obtain sufficient information beforehand. Unfortunately, it is rarely possible to inspect the interior of a property in advance, as the occupant does not have to allow any insight into the interior. For this reason, possible damages or defects often only appear afterwards.
Existing tenancy must continue to exist – unless own need
If you buy an already rented property at an auction, you automatically become the landlord and have no right to terminate the tenancy, unless you need the property for your own use. You are therefore bound to the tenants to a certain extent.
Bidder offers more than financially possible
At a foreclosure auction, there is always the risk of falling into a so-called “bidding frenzy”. If the desire to buy the property at auction is particularly great, the risk of getting into such a situation increases. The active bidders drive each other up and do not notice it sometime that they have already arrived at the limit fixed by themselves before. Through this happening it can happen that one drives oneself into a financial ruin. Once a foreclosure sale has been concluded, there is no longer any right of withdrawal.
No warranty on construction defects
If you have managed to buy a property at auction and afterwards construction defects occur, this is particularly annoying. The disadvantage of a forced auction is that there is no warranty on construction defects.
