Pensioners and young families hunt for mortgaged homes
Updated on: 20.03.2009, 12:14
Published on: 20.03.2009, 12:08
At the moment due to the crisis, an increasing number of apartment owners with mortgage lose their apartments, because they cannot pay their installments.
In Sofia city court, where the announcement of the sold properties owned by the banks takes place, pensioners and young families with children can be seen daily putting down information about the apartments. Those who want to strike a good deal have enough saved money and are ready to pay immediately.
Many of the candidate-buyers come to the court early and leave late in the evening with the hope that they will come across the best offer. The mortgaged homes are bought at a lower price than the market one. Apartments, which are 50% cheaper than those offered on the real estate market can be found, jurists explained.
The bank has the right to take the property from owners with mortgage, who cannot pay their loan for over 6 months. After that the apartment is being assessed by an executive magistrate and an auction is being announced in the regional court. The offers for sales are being announced on a board with an initial price, determined by the executive magistrate. After enough buyers gather, the auction itself starts.
Often times an apartment , bought by the first owner with a mortgage for 100 000 levs can be purchased for 60 000 levs at the auction. The price is determined by the number of people wanting to buy the property. The most preferred properties are in the Sofia residential complexes "Mladost" and "Lyulin", because they are the cheapest. According to executive magistrates, the number of mortgaged properties taken by banks will increase in the next months, because due to the crisis the number of bad credits increase.
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