- Anticipated auction of residential property and associated land in the nation.
Expects an uptick in compulsory property sell-offs, as per the Homeowners' Association in Rhineland-Palatinate, due to climbing interest rates. Ralf Schönfeld, the association spokesperson, shared this info with the German Press Agency in Mainz. Back then, loans for house finance were quite affordable due to low rates. However, that era's over now, leaving property owners struggling with hefty payments for new or renewed financing, potentially leading to compulsory property sales.
Compulsory property sales serve as a strategy for creditors to recoup their investments. This usually takes place when property owners encounter financial problems, can't manage mortgage payments, or have outstanding debts. Subsequently, the creditor initiates the compulsory sale process at the local court. The minimal property price is based on an appraisal assessment.
As per the Ministry of Justice, approximately 239 properties went up for sale through compulsory auctions in Rhineland-Palatinate within the first half of 2024. There were 467 approvals in the whole of the previous year, and that number was 490 in the year preceding that. In 2021, a total of 476 compulsory auctions occurred, as reported in response to a parliamentary inquiry by the Free Voters faction in Mainz.
The Homeowners' Association in Rhineland-Palatinate anticipates an increase in compulsory property sell-offs, as mentioned in a report by the German Press Agency in Mainz. Creditors often resort to compulsory property sales when property owners face financial difficulties, as stated by the Ministry of Justice.
