Houses at auction:
auspicious or inauspicious?
If no one is helping you, ask Rogitando.
The topic is delicate and a minefield, but there are still too many incorrect pieces of information and urban legends circulating about property foreclosures.
We’ll help you identify every risk and support you in the evaluation of purchasing property through the court’s database of proprieties at auction, market knowledge, real analysis of buying and selling prices, compilation, and verification of the documentation.
Finally, a technician and a professional specialized in real estate law and legal matters concerning forced selling of real estate assets will complete the service of purchase support.
What is a real estate auction?
The real estate auction is the result of an executive procedure that’s concluded with a forced sale in the form of a public auction sale, better known as auction.
The forced sale is therefore a mode through which the process of forced execution or forced expropriation is carried out to liquidate a certain material asset, such to allow the satisfaction of the creditors.
The procedure begins upon the request of the proceeding creditor, provided they have the necessary legal title.
The application for the sale must be submitted to the office of the execution judge, after at least 10 days have elapsed from the notification of the seizure, but not beyond 90 days, except for perishable goods.
At the end of this phase, the forced sale is carried out through an auction, that we distinguish in:
Open auction (real-time bidding)
Silent auction
Differences between judicial auction and bankruptcy auction
The difference between a judicial auction and a bankruptcy auction lies not so much in the procedure, which is substantially the same, but in the premise of the execution.
The bankruptcy auction is applicable only towards fallible and declared subjects who are unable to satisfy creditors, such as commercial activities, companies, and construction firms. Valuables, property, and land can be auctioned.
The judicial auction depends on the failure of private citizens to pay their creditors, such as a mortgage payments.
What are the risks of buying an auctioned house?
One risk to consider when purchasing a house at auction is the possibility that the propriety is still occupied by the debtor or by their family members.
The sale, in fact, occurs in the current legal and physical state in which the property is found.
The timelines for vacating the property greatly depend on the promptness with which the winning bidder pays the sale price and the diligence of the custodian.
The judge is required to mandate the release of the auctioned house within 120 days from the bidder’s request.
Usually, for the properties occupied by the debtor with minor children, the timelines can extend beyond six months compared to the standard ones.
If the executed debtor and their family don’t vacate the propriety voluntarily within the judge’s established timeframe, social services may intervene. Their role is to find an alternative housing solution to protect evicted minors and vulnerable individuals.
