Poles take more and more loans, including mortgages, and the cost of everyday life increases. Therefore, some people have a serious problem paying off their debts.
Creditors can try to get their money back by taking over the debtor’s property – it is then put up for bailiff’s auction. How to deal with this situation? Can a property indebted in this way be sold?
Attachment of real estate as a means of recovery by the creditor
When the owner of the apartment has debts and does not pay his debts, the creditor has the right to pursue his claims through the court. When the creditor obtains a final writ of execution, the case is taken over by the bailiff.
Initially, he is obliged to look for an effective way to collect the debt least troublesome for the debtor. If you own a property, your creditor strives to quickly and effectively satisfy your claim for a residential property.
What does it mean? The bailiff will send the debtor a final request to pay the debt, giving him two weeks to do so. After summoning the debtor to pay, the bailiff also sends an application for an entry to initiate enforcement in the land and mortgage register of the real estate.
The property is considered as occupied when the summons is delivered to the debtor or, if the call fails, at the time the entry is entered in the land and mortgage register.
Bidding procedure for real estate bailiffs
If the debt is not settled within two weeks, the bailiff will describe and estimate the value of the property and set a bid date by announcing it by public announcement.
The procedure related to the bailiff’s auction of real estate is complicated, expensive and burdensome for the debtor. The announcement about the auction is public and available on the Internet, and the debtor is exposed to visits of people interested in buying an apartment, who may come to watch them on the scheduled dates.
The price of the call, i.e. the lowest amount for which you can buy a property at the first auction, is 3/4 of the sum of the estimate. If no one buys property during the first auction, the bailiff sets the date for the second auction. Then the call price is only 2/3 (60%) of the sum of the estimate. It is not difficult to notice that properties at a bailiff’s auction are sold at a very low price.
After successful bidding, the bailiff proceeds to eviction at the request of the new owner of the property. The law, however, gives the debtor a chance to avoid losses related to the bailiff’s auction. If the debt is settled before the appointed auction, the execution will be discontinued.
How to sell a flat in debt?
An indebted flat can be sold legally – for a profit to both the seller and the creditor. Snag is to act as soon as possible. It is best to do this before the bailiff’s bidding begins, but even the property that is still occupied can still be sold.
If you have a problem paying off your debt …
In the event of arrears in the payment of mortgage installments or problems with the repayment of debts, when the creditor wants to take over our property, we have the right to sell the indebted apartment.
In the case of a mortgage, when the bank is entered in the land and mortgage register of the real estate, one should apply for relevant documents and with the help of a lawyer sign a settlement with the bank. The money obtained from the sale of the apartment is first used to pay the debt – the seller leaves the rest to himself.