Info and experiences with 'Zwangsversteigerung'

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It's surely very interesting for people who are entering into this kind of adventure with the unknown consequences here in Germany. In all other lands, banks or institutions are dealing with the problem of the previous owner, but it somehow always happens here in Germany that you must do the work of banks or other institutions alone, as if helping them to recover some money wasn't enough, you alone have problem with previous owners, their families, lawyers... 

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Why do you think its the work of the bank?

 

The banks job is to ensure that they make money from you...

 

The Notars Job is to ensure you understand the legal contract and the Transfer of ownership is made correctly..

 

The Purchasers job is the ensure that they re-pay the loan and pay the Notar..

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How can I find out the contact of the bank who is forcing the auction? 

 

You can find it out from the "Volltreckungsgericht" (a branch of your local magistrate´s court). They will have a file with all the available info of the property in question, including an expertise assessing the fair value and info about who is driving the foreclosure.

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@jeba: Is the file accessible online, or I need to come  to the Volltreckungsgericht in person to ask for it?

 

I search on this site http://www.zvg-portal.de/ and from there one can download Exposee and amtliche Bekanntmachung, which contains a lot of valuable information about the object. But I could not find the info about the bank driving the foreclosure.

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When I checked last it wasn´t online. But that was more than 10 years ago. Simply give the "Amtsgericht" a call and ask them.

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A few questions about some practical aspects of the process:

  1. if I only want to attend (not bid), and I understand this is possible, do I need to register before hand somewhere? Or is it allowed to simply show up on action date?
  2. if I want to bid, do I need to submit a binding bid before the action? Or can I join and submit any bids only during the action? (of course, assuming I have paid the 10% of action price before or have a check for it with me)
  3. Am I allowed to pay the 10% but than not bid at all during the auction if something makes me change my mind about the property?
  4. Is there a minimum/maximum price increment between subsequent bid prices in the auction? (what finance people would call tick size)

Thanks!

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  1. if I only want to attend (not bid), and I understand this is possible, do I need to register before hand somewhere? Or is it allowed to simply show up on action date?
  2. if I want to bid, do I need to submit a binding bid before the action? Or can I join and submit any bids only during the action? (of course, assuming I have paid the 10% of action price before or have a check for it with me)
  3. Am I allowed to pay the 10% but than not bid at all during the auction if something makes me change my mind about the property?
  4. Is there a minimum/maximum price increment between subsequent bid prices in the auction? (what finance people would call tick size)

 

ad 1: No need to register beforehand

ad 2: Yes, you can submit during the action, but a normal check won´t be good enough. I forgot the details, but I think you need cash or a check issued by the central bank.

 

The Vollstreckungsgericht should have an information sheet which gives all those details. At least the one in Würzburg has.

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ad 1 - we had people sitting in watching during ours.

ad 2 - it cannot be in cash anymore.  Per my local Sparkasse, it changed about 10 years ago when about 10 bidders were all bidding on a large property, and someone came in, grabbed all the bags of cash, and walked out a millionaire.

ad 2 - the bank forcing the auction can offer to forego the 10%... so it is good to have a relationship with them beforehand if possible.

ad 3 - yes.  We were required to deal with the 10% only when we started bidding... and the bank forcing the auction was our bank and they waived that requirement.

ad 4 - no.  We went with €500, but it could have been €1 and the bank shared stories of this happening.

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To re-open the thread..

 

My house was sold this year at a Zwangsversteigerung, t less than the appraised value. As there was no Profit made, I presume there is no Capital Gains Tax due (duh).

Will my part of the end sale Price be considered as income? Is this, then, an Income Tax question?

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the "profit" is calculated (as a starting point) between what you paid for it and what it sold for.  The fact that it sold for less than current appraised value *may* be immaterial.

 

 

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On 12/11/2017, 11:01:32, food mom said:

My house was sold this year at a Zwangsversteigerung, at less than the appraised value. As there was no Profit made, I presume there is no Capital Gains Tax due (duh).

Will my part of the end sale Price be considered as income? Is this, then, an Income Tax question?

 

On 12/11/2017, 11:24:55, food mom said:

We built it, almost 20 year ago, so that may not be calculable.

 

The profit (= price you sold it for, minus what it cost you for the land and to build) is tax-free since you owned the house for more than 10 years, and therefore you do not mention that profit at all in your tax return:

 

 

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