Buy an auction house in Italy with or without bank loan
Real estate auctions are a good opportunity to buy quality property at affordable prices, stipulating, if necessary, even a special mortgage.
Real estate auction: how does it work
In any case, it is always possible for those who know how to choose, to find good buying opportunities in real estate auctions, even if the available liquidity does not always make it possible to realize the real estate dream. In this case, it is possible a mortgage loan by auction.
When a property is auctioned as part of a legal proceeding, its selling value may fall by 20% of the market value, which is a benefit from the point of view of the accessibility of the purchase. The amount financed by the mortgage can instead reach 100% of the value of the sales and 80% of the value of expertise, thanks to an agreement between Abi (Italian Banking Association) and the courts (the list of participating banks is available on the Abi site). Before establishing the amount of a mortgage by auction, it will then be up to the forensic expert to set the value of the property, once established its cadastral parameters and general conditions. These characteristics will be recorded in a document that each participant in the auction will be able to consult.
The court then sets the base price, the filing date and the duration of submission of tenders, as well as the date of payment of the balance. Information, these, which are made public in the court register and with advertisements in the sections devoted to auctions in newspapers and other media.
Loan auction: no notary fees
Once the property is granted, the winner pays the balance: if he wants to buy by loan, the signature of the latter is done at the same time as the transfer of ownership decreed by the judge (which does not involve notary fees, which constitutes an additional advantage). The loan is then granted only on the condition that the participant in the auction, who must have signed and presented at the auction stage a preliminary document to this effect, actually gains ownership. If the award does not take place, the preliminary document does not imply any obligation.
If the loan is not sufficient to cover the total cost of the purchase, the borrower will have to cover the remaining part (with its own cash or with a loan or mutual liquidity). Mortgage bids, like all other mortgages, will have an amortization period and procedures similar to “traditional” loans. In addition, if the property purchased will be a first home, it will receive the associated tax benefits.