Collateralized property could be bought by several ways

Everyone is dreaming to save for flat buying. You could buy property at discount taking part in auction by selling bank pledge. Property by auction is cheaper than on market usually on 10-40%.

You could buy collateralized property in several ways. First of them – buy a flat from creditor. However, on this stage the price will be close to the market one. Second way is buying confiscate property which bank sells on auction.

Everyone who wants to buy pledge flat has a right to buy it from borrower by market price according to the contract purchase and selling. In this case bank could only offer potential clients to the seller. But if borrower could not realized the pledged flat then bank has a right to put the law on the creditor that he is unable to pay. Then pledged is selling on the auction. According to the law, bank does not have a right take and sell the flat by itself if another does not foreseen in the mortgage contract. In that case, pledged property is realized according to the court decision or executive note of notary of executive civil service on the auction.

Apartments from auction have price attraction for buyers because of long preparation of auction. This procedure takes 5-7 months. For this time the market price of the flat in 70 thousand dollars could raise on 20-30 thousands. But the price of the pledged property does not change.

Auction is made by specialized organization. Usually, it is Ukrspetsust or National network of auction centers. Duties of specialized organization are: preparation of auction and also their conducting. Information about auction should be announced for 15 days to its beginning. The advertisement is publishing in the newspapers in the location of the property. Also the information about prepared auction could be in any other mass media. In advertisement about realization of pledged property should be following data: name and characteristics of the flat, its location and start price.

Also potential buyers should know:
- the sum of payment for registration of participant of auction;
- name and address of bank-creditor;
- account for paying the fee;
- date, time and place of examination with flat;
- date, time and place of auction;
- data of specialized organization which conducts the auction;
- the end of registration for taking part in auction.


Buy the flat on the auction is not so easy. The main difficult is absence of information about auction. Advertisements in newspapers and on the sites of trade organizations are the only one recourse of data about what flat and what the starting price. Very often specialized organizations economize money, placing the information in not popular additions where it is unnoticed.

One more problem is unwillingness of banks to sale confiscate on auctions. According to the words of lowers, flats which banks put for sale is very rare. The share of problem credits do not increased 3-4% the general number of giving loans. However, pledges of hopeless lends banks try to sell passing over auction. Usually, financing agency agrees with borrower not to put the flat on auction but sell it through the real estate agency. All parties are interested in selling the property as more expensive as possible, that is why, if terms are not urgent, then it is selling according to standard price conditions. In this financing agency is hard to find full flats for auction. Usually, for realization gives parts of flats: one half or one third.