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Thread: Who signed for our mortgage?

  1. #11
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    Default Auction/sealed bid query

    Hi

    Since I last spoke our apartment, for a fee of 1000 euros, has been entered into a live auction. Which in fact resembled more of a sealed bid method of selling. We supposedly sold at this live 'auction' via an absent bidder through a commission bid just over our advertised selling price. This was two weeks ago and we have received no reservation fee from our supposed buyer, so in effect have lost two weeks of marketing our property believing a commission bid was in some way shape or form legally binding.

    Were we right to believe that an auction house instructed by us, with the transfer of 1000 euros, can be allowed to trade in such a way whereby a successful bid on a property does not result in anything legally binding let alone an eventual completion of sale?

    Thanks
    SuR

  2. #12
    Senior Member
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    Default

    Dear Sir/Madam,

    I take it you are referring to a private auction, not a public one?

    Because in Public Auction any potential bidder must previously lodge before the law court's bank account 30% of the assessed appraisal auction value to be enabled to bid as prerequisite.

    Regarding private auctions its whatever you've agreed with them and however they work.

    Yours faithfully,
    Last edited by Lawbird Lawyer; 10-02-2009 at 01:28 PM.

  3. #13
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    Default Auction/sealed bid query

    Hi

    Direct Auctions is the company and they make this claim on their website...Direct Auctions was the first Property Auction house open to the public on the Costa del Sol.

    Is the fact that it is open to the public make it a public auction?

    Thanks
    SuR

  4. #14
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    Default

    Dear Sir/Madam,

    To the best of my knowledge it's a privately held company, it's not "public".

    Yours faithfully,

  5. #15
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    Default

    Hi

    Would yo know of a public organisation that would suit better? Should we look for an auction house with plc at the end of their name (or spanish equivalent if you could tell me what that would be)?

    Would this safeguard us in future...i e sell our property on the drop of the hammer?

    Many thanks
    SuR

  6. #16
    Senior Member
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    Dear Sir/Madam,

    The truth is that in auctions, private and public alike, no one is bidding unless the asset is exceptional (i.e. Lord Sugar).

    The reasons are:

    1. Shortage of liquidity
    2. Outstanding mortgages against the property are higher than the intrinsic value of the asset itself (negative equity).

    Professional bidders are only interested in properties prior to 2003 (when properties began to be ridiculously overvalued thus attracting huge mortgages against them) or else properties that are in prime locations (i.e. beach front) or else have plenty of equity in them.

    Nowadays, no one can guarantee you that your property will be sold, not even in an auction, whether public or private.

    Here's a link to the Sur newspaper from March 2009 where they write that banks have to withhold 80% of properties going into auction as there are no bidders interested:

    http://www.diariosur.es/20090328/mal...-20090328.html

    And yet another link to the same newspaper with yet another article in which they claim that in all public auctions held in Marbella city, where we are loacted, no one has bidded:

    http://www.diariosur.es/20081129/mar...-20081129.html

    I suspect the situation repeats itself nationwide as the problems which afflict the sector are also of a national and international scope (credit crisis), so there is no escape.

    Yours faithfully,
    Raymundo LarraĆ*n Nesbitt

  7. #17
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    Default

    Given these circumstances how would you advise we proceed?
    Thanks
    SuR

  8. #18
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    Proceed? You mean to sell your property asap?

    All the conveyance procedures in which we have been involved this year were cash buyers.

    All deals dependant on securing finance have fallen through, all. To the despair of some sellers, even thrice. I know people who have been trying to sell for the last 4 years.

    So my recommendation as always is to be practical, not beat around the bush, bite the bullet, cut losses and sell extremely competitively below the market value (BMV) if you really need to sell now for whatever reason i.e. you cannot afford your monthly mortgage repayments. There are plenty of websites available, just google them, specialised on distressed assets and fire sales. Ask any estate agent, they will help you.

    If you can afford to sit back and hold onto the property for the next years weathering off the storm you should do so. If you sell now you must assume you will do so losing money. The Governments say we are back to normal and the green shoot hype etc. But in Main Street we see it as tough as ever.

    If you still cannot sell the property and you are about to default on your mortgage (if you do have one) then I advise you follow a daciĆ³n en pago de deuda (handing back the keys):

    The DaciĆ³n en Pago Explained - 28th March 2009

    Clearly this is a Buyer's market, a very tough one. One man's meat is another man's poison et al.

    In any case, as a disclaimer, take what I write with a pinch or two of salt as almost all the e-mails I receive for the last two years have been mortgage related problems and people unable to sell up or wanting to pull out. What I mean to say is that the vast majority of queries I receive are all biased towards financial problems (which is why people seek our advice in the first place). So maybe I'm being a little too over pessimistic.

    But that's just our experience anyway. Others will have a different one.

    Yours faithfully,

  9. #19
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    Guest

    Default Dacion refused

    Hi again

    We have mentioned to the bank via our solicitor that we will be applying for a Dacion en Pago, as we are now facing severe financial problems servicing our mortgage.

    The bank, via the solicitors, have come straight back and said they will not accept dacion. Can the bank flatly refuse without having valued the property? We have not defaulted on our mortgage and all bills are up to date. We have had two valuations in the last year that put the value of the property within the % criteria a property must meet in order to be eligible for a Dacion.

    Thanks
    SuR

  10. #20
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    Default

    Dear SuR,

    That's odd. Banks normally accept a daciĆ³n providing you have 20% equity or more locked in the property.

    On what date (month & year) did you buy this property?

    For what price?

    What was the mortagge loan on it?

    What are the current apparaisal values you mention in your post above?

    Who commanded these aprraisaal values and what companies did you use?

    Regards,
    Raymundo LarraĆ*n Nesbitt

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