Info and experiences with 'Zwangsversteigerung'

74 posts in this topic

There are already a number of threads on House Auctions

 

http://www.toytowngermany.com/search/?q=Auction

 

best read those and join the one that has the best answers.

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Saga update...

 

We met with the previous owners last Thursday to get the keys. The did hand them over. I wanted to get the Utility meter readings and the document what might still be in the house. But... the guy had his crap EVERYWHERE. Called the Schlüsseldienst to get the locks changed and they need to order specific cylinders so it will take 1-2 weeks. On Sunday some friends came by after church so we could show off / tour. They took pity on us, said 'screw not working on Sunday' and we spent two hours moving stuff from all over the house into:

Büro (40 sq m)

Swimhalle (40 sq m)

Cellar (15 sq m)

Garage (40 sq m)

 

Add that up, and you can figure out how much space he is still needing. He has resigned to the fact that he won't take the sauna with him (wahoo!... except I'm not really that into Sauna). The tanning bed might take a while too, he said. I think he wanted to get it all moved out, just he has all these little projects on the go and never completes them. I can sympathize because I'm the same way, but it impacts my kids and family and now I'm fed up with him delaying.

 

Next stop - lawyers to get a letter saying 'Get your stuff out, or you will pay storage fees'.

 

If I did it again, I would have given him 1 month free, and then charged storage fees. In return for information, I would cancel some storage fees (eg, just how does the in-floor heating work, and what is an Erd-wärm-pumpe?).

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Does anybody know if it is possible to circumvent the auction process and negotiate directly with the lender on a property? Or is it that once the foreclosure is made public, it has to go to court and everyone bids together?

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Of course, this is possible. However, you also need to deal with the creditor who instigated the foreclosure because he has the power to stop it.

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Hi! We're planning to bid on a house being auctioned Monday morning. We are supposed to pick up the check from our bank tomorrow morning for the 10% (49,800 euros), but the bank doesn't know who to make the check out to! We called the courts, and they said it should be blank. Really? A blank check? The bank says they won't give us a blank check. They said they will make it out to the Gerichtskasse and deliverer. We are going to the main bank (Sparkasse) in the morning and I would really like to know what is correct. The courts said they have never gotten a check that's filled out TO anybody. HELP!!! The house is a 4 hour drive from where we live...and I would hate to get there and then find out we can't bid because the check isn't filled out correctly!!

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That doesn't matter.

 

What matters is that the cheque is a (see here):

 

  1. a Verrechnungsscheck
  2. issued by Sparkasse, but drawing on an account of their parent organisation Landeszentralbank
  3. has 2 signatures and a stamp on it
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So last week I bought a house through Zwangsversteigerung. We had already seen it and had briefly spoken with the foreclosed owners. The Bank valued the property at 234000, minimum bid was 170100. I got it for the minimum bid. After the purchase I spoke to the former owner informing him that I had bought the house, needless to say he was pissed that we got it for so cheaply. I discussed with him the insurance switch over and told I would be calling him next week to work out an appointment so we can discuss the formal handing over the keys etc. Yesterday I call him he tells me he doesnt want to talk and that he is speaking with his lawyers about what do to. The deal is done I am the owner, but I am unsure of what I should do now... Also today the Stadt of Bad Urach sent me a bill for Grunderwerbsteuer at 8505 euros. What exactly is this for???

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Also today the Stadt of Bad Urach sent me a bill for Grunderwerbsteuer at 8505 euros. What exactly is this for???

 

That will be a certain percentage (looks like 5%) of the purchase price for the privilege of buying a house.

 

Are you entered as the owner into the Grundbuch (I think its called)?

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That will be a certain percentage (looks like 5%) of the purchase price for the privilege of buying a house.

 

Are you entered as the owner into the Grundbuch (I think its called)?

 

Oh, ok, please tell me that is a one time thing! Tomorrow my name will be entered into the Grundbuch...

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There will be a couple of bills coming from the Juristamt. The 5% is the big one, and I recall another small one.

 

As for the previous owner, you have a one-time right to immediately evict him from the house. He has no right to live there at the moment. I worked with a lawyer and we gave the previous guys 3 months (which was too long, should have been 2 months, because they will stretch things). Some people on TT offered a cash incentive to leave in sufficient time - something like 10k for immediately, decreasing by 1k a month. Saves going through a lawyer and evicting. But... if the people don't leave, you have lost the time and still need to get a lawyer and evict them.

 

Considering the people's response for your house, it seems like they are stalling. I'd get a lawyer involved. We ended up paying about 800 EUR for the work of writing a few letters - somehow the lawyer determined this based on a streitwert of an estimated 1-year rents. And this was for me with the guy leaving somewhat amicably.

 

Good luck.

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Ok, my boss gave me his lawyer whom I saw today. The lawyer was quite aggressive in his approach and said forget being a nice -and trying to reason with the former owners as they have lawyer-ed up, I should respond in kind. I was willing to give them 8 weeks, the lawyer said forget that and he sent them a letter telling them to move out by the 15th August, or else! Will let you all know how it turns out in the end... I guess sometimes being a nice-guy gets you nowhere in this business world...

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Congratulations on the house. My limited experience is that the owner / occupiers of auctioned houses may already be a bit 'challenged' in their grasp on reality. The bank won't accept any responsibility for the human being that they acquired along with the property, so don't let them pass any sense of guilt on to you. This situation was not of your making.

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Try googling: zwangsversteigerung eigentümer rauswerfen

The answers on other forums gives a good overview of the rights and reality of evicting the people currently in the house. A warning - there are stories of people trashing the place before leaving, or ripping out all the wiring, etc. Since they are bankrupt and couldn't pay the bank, it can be difficult to reclaim any damages (they are bankrupt - which is why the house went to zwangsversteigerung).

 

 

The bank won't accept any responsibility for the human being that they acquired along with the property

 

Technically, the bank didn't acquire the house, just forced the sale to get some money back. A difference from, say, Canada, where I understand the bank takes ownership at foreclosure and will evict people. An additional risk in the Zwangsversteigerung.

 

Good luck!!

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I have a query regarding a property I am interested in purchasing at a Division auction. 

 

Basically, according to the Land Registry, the property has a mortgage of 110.000 DM at 16% from 1996. I am concerned that I will not be able to get a mortgage on the property if the 'old' bank refuses to discharge the loan, not to mention 16% is too much interest. Do you know if the bank can refuse to let me discharge it?

 

Has anyone any experience with a similar situation?

 

Thanks in advance.

 

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There will be no mortgage in the registry once you become the new owner.

 

It's actually that bank which wants this property to be sold since they seem to have trouble getting their money back from the current owner. The purchase price will go to the bank under the premise that the mortgage gets deleted.

 

High interest rates for such mortgages, Grundschuld are common.But only as maximum rate the lender can ask for, the real interest rate is almost always way lower.

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Thanks for your prompt response sosarx,

 

Just to clarif, this is a division auction. The bank is not the one forcing the sale... it appears that there is a dispute between the owners

 

My understanding is that mortgages in germany are not on the owner, but on the land. As such, it is possible that loans will be inherited. I was concerned because my mortgage advisor indicated that the 'old' bank might not cancel the mortgage and this would make it hard to get a new mortgage ...Can this be unique to division auctions?

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In a "Teilungsversteigerun", division auction, the mortgage would in fact remain in the books. And since whole matter is , or at least can turn out to be way more complicated than a "normal" Zwangsversteigerung I would recommend to seek professional assistance.

 

You could turn to a notary and ask for clarification about all possible procedures and consequences . Will cost, but will be much less expensive as the possible trouble you could run into by not understanding all points.

 

I was at court as witness in a bit similar cases a few months ago.Nightmare.  Please see a notary or at least a lawyer.

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From what I understand, when a couple separate and wish to sell the house and they cant agree to the sale price, then its usually left in the hands of The Bank.

 

The bank will calculate exactly how much they need to recover from the sale of the property to cover the debt that is secured against it!

 

The Bank will then usually offer the property for sale with a price of "Better than" xxx,0000 €uro!..

 

This is where you put in your offer, before the closing date of the "Closed auction"...

 

So, Although there is a debt against the house for 110K DM, that isnt nessacarily what is owed to the bank! ( dont forget they will have, or atleast should have been making repayments each month....)

 

 

 

 

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