What apartments are being sold at auction?
- State and municipal property
These could be new buildings that are being built by city authorities. By law, they are sold only at auctions. The cost of such apartments is equal to or very slightly lower than the market price, but buying such apartments is absolutely safe.
The city also sells secondary housing from Mossotsgarantiya. The city authorities get it from pensioners who move to social housing or enter into a lifelong maintenance agreement.
Discount from market value.
According to experts, such apartments are sold at a slight discount. “Secondary city apartments are usually offered at prices approximately corresponding to the market prices, maybe a little cheaper - by 5-10%,” says the head of the analytical Oleg Repchenko.
Risks
. Legal risks when purchasing such apartments are minimal, but they still exist. “After the purchase, potential heirs may appear who will try to challenge the buyers’ right to the apartment,” warns Arbat MCA lawyer Vadim Bashir-Zade.
- Collateral apartments
These are apartments of people who could not pay their mortgage or secured cash loan.
Discount from market value.
Of all types of housing at auction, these apartments are usually the cheapest. According to experts, the discount can reach up to 50% of the market value. “True, such options rarely appear, and during the bidding the price rises, so the final savings rarely exceed 20–30%,” explains Oleg Repchenko. According to the managing partner of Metrium Group, Maria Litinetskaya, the increase in prices during the auction depends on the attractiveness of the apartment and the number of auction participants.
Risks.
The main legal risk when buying a mortgaged apartment is challenging the auction. “Moreover, the owner can challenge both the bailiff’s decision on the sale, as well as the established price, the bidding procedure and their result,” says Vadim Bashir-Zade. If the owner wins in court, the auction will be declared invalid and the purchased apartment will have to be returned. Another unpleasant situation is the refusal of debtors to leave the apartment. Such tenants will have to be evicted through the courts, the lawyer warns.
How to take part in the auction
1. Choose an apartment
Municipal apartments
New buildings from the city and secondary municipal housing are collected on the Investment Portal of the City of Moscow. On the website, select the “Tenders” tab. Property" and click on the link "Apartments for sale". You can refine your request by specifying the district, district, metro, price range - to do this, click on the “More filters” menu.
The entire city's secondary market is also available on the Mossotsgarantiya website. You can select the nearest auction or view objects on the map - to do this, click on the desired item in the menu at the top right of the page.
Municipal new buildings are available on the website of the Civil Engineering Department. Click on the objects on the map, refine your request by district, area, area or price, or select the option you are interested in by scrolling through the list of auctions.
You can view city apartments before purchasing. To do this, you need to submit an application to inspect the auction object through the “Personal Account” on the Investment Portal. Through the “Personal Account” you can also view the documents for the apartment.
Mortgage housing
Debtors' property can be found on the website of the Federal Bailiff Service (FSSP). Scroll down to the lot search options. Fill in the following items: “Status - Announced”, “Name and characteristics of the property - Apartment”, “Location of the property - Moscow” and click the “Find” button. Select an apartment and click on the lot number - a page with a description of the lot will open. There is no information on the FSSP website about the trading platform and the time of the auction. For all questions, it is better to contact the auction organizer. To find out his phone number, click on the “more details” link to the right of the auction organizer’s description.
Information about mortgaged apartments is also available on the Official Bidding Website. You need to hover over the “Tenders” tab and select the “Sale of debtors’ property” item. Then, in the “Tendering” column on the left of the page, select the item “In the process of submitting applications”, and in the search for lots, enter the necessary parameters: “Type of property - Apartment or part of an apartment”, “Country of placement - Russia”, “Location - Moscow”.
Inspection of mortgaged apartments before the auction is not provided, so, most likely, you will have to buy a “pig in a poke.”
2. Get an electronic signature
An electronic digital signature is a “key” on a USB flash drive. It gives the electronic document legal force. The signature can be obtained from authorized certification centers. To do this, you need to fill out an application and present your passport, SNILS and TIN. The cost of a signature depends on the center’s tariffs, on average - from 1,000 to 3,500 rubles.
After receiving the electronic digital signature, you must configure it according to the instructions (attached to the signature), and then install a cryptographic information protection system. Access to such a system is usually included in the signature package.
3. Register on the site
Auctions are held on electronic trading platforms specified in the lot documentation. The main platforms for conducting government auctions are Sberbank-AST, the Unified Electronic Trading Platform (EETP) and ets24.ru.
The operating principle of all trading platforms is the same. To register, you will need scans of all pages of your passport and an electronic signature. An application for registration and accreditation at any site is reviewed within 5 days. Please keep this in mind so you are not late for the auction.
4. Make a deposit
Usually this is 2–10% of the starting cost of the apartment, according to the law - no more than 20%. Bank details for transferring money to the account of the operator of the electronic platform can be viewed in the “Personal Account” after registration. You can make a transfer in any convenient way - for example, at a branch of your bank, through online banking or a mobile application. Important: be sure to indicate your TIN when specifying the payment, otherwise the money will not be credited.
To all losers, the deposit is returned within five days after the auction, to the winner - it is included in the payment of the full cost of the apartment. And if the buyer wins the auction, but refuses to buy the apartment, the money will not be returned to him.
5. Submit an application to participate in the auction
To do this, you need to fill out an application and attach a copy of your passport. If you are married, you must also provide a notarized consent of your spouse to complete a real estate transaction.
The auction may be declared invalid if there is only one participant at the auction. But in this case, he is offered to buy an apartment at the starting price, without competition.
How to save a mortgaged apartment
24.09.19
M. Poluektov / AK Poluektova and partners
A mortgaged apartment can be foreclosed on even if it is the only home for the debtor and his family members, and even if there are minor children or other disabled persons. Property (executive) immunity does not apply to such apartments.
However, in some cases, the moment of parting with a mortgaged apartment can be greatly delayed or even avoided altogether. To do this, you need to know some legal subtleties.
For simplicity of presentation, we will assume that the mortgage of the apartment secures the borrower’s obligation to the bank under the loan agreement.
Foreclosing on a mortgaged apartment is possible only by court decision.
At the same time, by virtue of clause 2 of Article 348 of the Civil Code, the court will not foreclose on the apartment if the debtor’s violation of the loan agreement is insignificant and the size of the bank’s claims is therefore clearly disproportionate to the cost of the apartment.
It is assumed that the violation of the loan agreement is insignificant if the period of delay is less than 3 months.
It is assumed that the size of the bank's claims is clearly disproportionate to the value of the mortgaged apartment if the amount of the unfulfilled obligation is less than 5% of the value of the apartment.
Moreover, it is necessary that both of these conditions are met simultaneously - the second condition must be a consequence of the first.
For obligations fulfilled by periodic payments (and almost all loan agreements relate to them), the legislator, in paragraph 3 of Article 348 of the Civil Code, provided another basis for foreclosure on the collateral - if the deadlines for making payments are violated more than 3 times during the 12 months preceding date of application to court (unless otherwise provided by the contract). Moreover, in this case, the size of the delay does not matter. That is, we can say that the rule of paragraph 3 of Article 348 of the Civil Code is an exception to the rule of paragraph 2 of Article 348 of the Civil Code.
Thus, in the event of non-fulfillment of the loan agreement, the basis for foreclosure on the mortgaged apartment may be both the conditions provided for in paragraph 2 of Article 348 of the Civil Code (significant violation - more than 3 months of delay for a total amount of more than 5% of the cost of the apartment), and the condition provided for in paragraph 3 of Article 348 of the Civil Code (systematic delay in making payments - more than 3 times within 12 months).
However, the borrower should not rely heavily on the fact that paragraphs 2 and 3 of Article 348 of the Civil Code will protect him from the loss of the mortgaged apartment.
The fact is that, according to clause 2 of Article 811 of the Civil Code, if the borrower violates the deadline established for repaying the next part of the loan, the lender has the right to demand early repayment of the entire remaining loan amount along with interest for the use of the loan due at the time of its repayment. This rule also applies to loan agreements.
As a result, even in the event of a slight one-time delay in making the next payment, the bank has the right to demand early repayment of the entire remaining loan amount along with interest. If within 3 months and 7 days (clause 2 of Article 314 of the Civil Code) the borrower is unable to pay the bank this money, then the condition of clause 2 of Article 348 of the Civil Code regarding a significant violation will be considered met and the bank will have the right to foreclose on the mortgaged apartment.
What should you do if the bank goes to court with a demand to foreclose on the apartment?
As a rule, in such situations, only clause 4 of Article 348 of the Civil Code can save the debtor, according to which the debtor has the right at any time before the sale of the apartment at auction to stop foreclosure and its sale by fulfilling the obligation secured by the pledge or that part of it, the fulfillment of which is overdue
.
Therefore, you need to delay the sale of the apartment as long as possible and at the same time look for money to pay off the debt.
Perhaps the borrower has property less valuable than an apartment that can be sold. Or you can look for an option to refinance.
You can delay the moment of selling an apartment by delaying the legal process of foreclosure on the apartment (see our article “How cases are delayed in court and how to resist this”) and appealing the actions of the bailiff.
What can and should be done specifically?
1. As part of a court case to foreclose on a mortgaged apartment, it is worth trying to establish the highest possible initial sale price for the apartment.
In this case, the likelihood of selling the apartment at the first auction is reduced. There is no point in counting on the fact that the re-tender will not take place, since after the failed re-tender the bank will most likely keep the apartment.
If the case contains an appraiser’s report submitted by the bank, then the results of such an assessment can be appealed in a separate court and, pending consideration of this dispute, an attempt can be made to suspend the proceedings in the case of foreclosure on the apartment.
As part of the case of foreclosure on an apartment, the court may order a judicial appraisal examination.
2. In the framework of a court case to foreclose on a mortgaged apartment, it is worthwhile, on the basis of clause 3 of Article 54 of the Federal Law “On Mortgage (Pledge of Real Estate),” to submit an application for a deferment in the sale of the apartment for 1 year.
3. Appeal the court decision to foreclose on the apartment through the appellate procedure in order to delay its entry into legal force.
4. Appeal the auction for the sale of an apartment. Sometimes, for this purpose, friendly persons are invited to participate in the auction.
5. Ask the court to suspend enforcement proceedings on the basis of Article 104.5 of the Federal Law “On Enforcement Proceedings”.
6. Appeal the actions of the bailiff.
There is another option in which the deposit from the apartment is removed even without repaying the debt to the bank.
This can happen if bankruptcy proceedings are initiated against the borrower and the bank misses the two-month deadline for including its claims in the register of creditors' claims.
The legal consequences of missing this deadline are provided for in paragraph 5 of the Resolution of the Plenum of the Supreme Court of the Russian Federation dated December 25, 2018 N 48 “On some issues related to the peculiarities of the formation and distribution of the bankruptcy estate in cases of bankruptcy of citizens”:
“If the creditor, on a claim secured by the pledge of the only residential premises suitable for permanent residence of the debtor and members of his family, did not present this demand to the debtor within the framework of the bankruptcy case or applied for establishment of the status of a secured creditor after missing the deadline determined by paragraph 1 of Article 142 of the Bankruptcy Law, and the court refused to restore the missed deadline, such a creditor does not have the right to count on satisfaction of his claim at the expense of the collateral, including through foreclosure on this property outside the framework of the bankruptcy case
”.
For citizens who have no other housing besides a mortgaged apartment, such “forgetfulness” of the bank is a great success.
What happens in this case from a legal point of view?
Executive immunity begins to apply to the apartment; it does not fall into the bankruptcy estate of the citizen (clause 3 of Article 213.25 of the Bankruptcy Law) and cannot be realized in the bankruptcy procedure.
If, at the end of the implementation procedure, the arbitration court releases the citizen from further fulfillment of obligations, then the right of mortgage on the apartment will cease. No one will be able to foreclose on it (Article 446 of the Code of Civil Procedure). The apartment will remain the property of the borrower.
How the auction is conducted
The auction begins on the day and time designated by the trading platform. Each lot has its own “auction step” or “trading session step” - the amount by which each participant can increase the sale price of the apartment at one time. Usually the “step” is 0.2–1% of the initial cost of the apartment, according to the law - no more than 5%.
Within an hour after the start of the auction, each participant can agree to purchase property at the starting price. Then the auction is extended for the time set by the platform: in Sberbank-AST it is 10 minutes, in EETP it is 1 hour. During this time, any participant can raise the price of the apartment by one “step”. Then the time counter is reset and the auction continues.
The winner of the auction is the participant who offers the highest price for the apartment. He must pay the full price of the lot within five days after the end of the auction. An apartment can be purchased with a mortgage or using subsidies, such as maternity capital.
Types of non-core assets of banks
- Commercial real estate: industrial premises of any size (equipped or without equipment), shopping centers, business centers, premises on the first floors of residential buildings, office premises, warehouses, premises for free use, etc.;
- Residential real estate: apartments, rooms, houses, dachas, cottages, townhouses, kindergartens.
- Land plots: settlement plots (individual housing construction and ZNP), agricultural plots and industrial plots.
- Ready-made business in various industries, incl. shares and shares;
- Rights of claim on loans;
- Cars, freight transport and special equipment;
- Various equipment: machines and machines for the production of various types of products.
