REAL ESTATE AUCTIONS: CONSULTING TO RECOVER TIME AND MONEY
According to recent statistics, there are 374,440 Italian families, for a total of 2,050,020 individuals, involved in the real estate auction market. Many people who for various reasons have not been able to pay a debt, usually the mortgage. On average, 9.5 years of labor are weighed on a family because of the unpaid debt and the consequent auctioning of the property. Of these, about four pass from the last unpaid mortgage payment up to the seizure and then, from the attachment to the award of the asset, they pass an average of five others.
Last year alone, 234,340 properties were auctioned (642 every day and 27 every hour). As at 1 September 2018, auction houses were 203 thousand, an increase of 19.3% compared to the average of the previous year.
House prices at auction.
The total basic auction price is about € 51.4 billion compared to their real market value of € 128.4 billion. The estimate of the loss of State revenue is instead of over 3 billion euros, because the good sold at values much lower than the real value of buying and selling means less taxes collected. These losses are net of another 2.6 billion euros of government revenue lost due to non-payment of other taxes and taxes: those who stop paying the mortgage, usually also stop to catch up with the tax authorities. Over 3 billion, then, are the total costs of justice expenses in 2017.
The figure of the real estate execution consultant.
In light of the above, there is a need for a solution that reduces the time and losses and allows debtors to settle accounts with the banks by selling the property at a fair price, without having to find excessive residual amounts. And the solution is called consultant in real estate execution. It is a professional figure, an intermediary who on one hand knows the legal subject in real estate, on the other hand has a 360 degree knowledge of all the parties involved in the procedure and finally has the skills to give satisfaction and agreement between all creditors dealing extrajudicially with the recovery of credit.
It is the same interest of the banks to manage the criticalities in payments before the property under warranty ends up in the hands of justice. In fact, through a judicial auction, only around 56% of the value of the property is recovered. Which means that the bank does not recover all the credit, and the debtor may not pay the entire debt, which remains in charge (and charged to any heirs). On the other hand, a specialized company can bring the property directly onto the market, with a closer realization of the value of the debt, faster issues, and a 15-20% discount on the price that would also satisfy the buyer. A win-win solution.
The goal is to manage this amount of buildings with everyone's satisfaction, thanks to real estate consultants.
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