Car auctions from bailiffs

3 ways to buy a confiscated car from bailiffs

Today, buying a confiscated car is in demand among car enthusiasts, because it can be purchased at a reduced market value. Not everyone can afford to take out a loan from a bank and then repay it with high interest rates over several years. Let's look at how to buy a seized car from bailiffs.

Seizure of a car by the FSSP

Car confiscation is carried out mainly by banks and by court decision in case of non-payment of a loan. Bailiffs have the right to seize the vehicle irrevocably and have all the powers for subsequent sale, again through a bank, auction or online Internet.

The FSSP confiscates not only vehicles, but we are interested in them

How does arrest or confiscation by bailiffs occur?

If a compromise is not found between the debtor and the bank, the second is forced to file a lawsuit to collect the debt from the client.

They have all the powers to do this . The car is confiscated in the following order:

• a written court order is presented to the debtor regarding the collection of measures;
• a visit is made to the debtor’s house together with two witnesses;
• a protocol is drawn up on the vehicle indicating information about the debtor, a description of the compulsory collection measure applicable to the debtor on the basis of legal proceedings;
• any audio-video materials are attached to the protocol as material evidence during the seizure procedure;
• a search is announced in case of concealment;
• the car is seized;
• the seized property is being sealed;
• the debtor or legal representative is given a copy of the special act as proof that the introduced legal measure comes into force.

A seized car will soon go under the hammer if the owner does nothing

As a result, the debtor is deprived of the right not only to drive the seized car, but to his property as such. Bailiffs have the right to immediately seize the vehicle along with its registration certificate, state sign, and registration certificate.

Ultimately transfer it for storage to third responsible persons, in particular to the same witnesses. Although it is important to understand that such a collection process is regulated by the Civil Code of the Russian Federation and FSSP employees will first offer a voluntary transfer of the car .

How and why a seized car can be sold

The main purpose of a car seizure is to collect debts from the debtor both to the bank and to the traffic police in the event of systematic failure to pay fines or late registration of the vehicle by the car owner.

This is a kind of debt compensation and an extreme measure in relation to a negligent debtor.

Selling confiscated cars at auction is popular all over the world.

The court's decision is the law in our country. If the debtor does not deign to file an appeal within 10 days or pay the debts in full, then the court has the right to carry out legal proceedings.

Bailiffs are given the authority to seize the vehicle and put it up for sale. From now on the car becomes confiscated.

After assessing, recording the technical condition and existing damage to the car, the assessment commission will set the cost of the car and, as a rule, remove the serial number.

How not to buy a car with a registration ban

Experts do not recommend buying such a confiscated vehicle, because if there are encumbrances or a ban on registration with the traffic police , it means that it will not be possible to register the car as your property.

In this case, car enthusiasts need to look at the situation and carefully study the agreement with the seller, who is usually a bank.

You can buy a car without fear only if there is a clause in the contract that when the debt is paid, the arrest and various restrictions on the car in connection with the re-registration to the new owner will be lifted.

In what cases will the buyer have to wait for the arrest to be lifted and go through the courts:

• lack of customs clearance for the vehicle or incorrect implementation of the procedure;
• being hijacked or being a defendant in any investigation;
• ignorance of sanctions imposed by the seller himself;
• resale, repurchase of an imported car from abroad without registration with the traffic police, while the former owner disappears without a trace or does not make contact;
• dishonest and deceptive actions on the part of the seller;
• the presence of unpaid fines unknown to the new owner.

Lawyers advise! Carefully study the history of a confiscated car before purchasing, otherwise such transactions may become unprofitable and costly.

Gullible people traditionally fall for the tricks of scammers in pursuit of profit.

A way to check a seized car before buying it from the bailiffs

Still, it’s better to buy a clean car and don’t be too lazy to first check it for arrest or restrictions by contacting the bailiffs. What should be done :

1. Contact any nearby traffic police department.
2. Submit an appropriate request outlining the information you are interested in about the vehicle.
3. Wait for a written response from the FSSP employees.
4. To make things move faster, provide the available data (model, make, engine registration number, body).
5. Try to get information on the official online services of the State Traffic Safety Inspectorate and the Federal Bailiff Service. Check for database restrictions in this way.

How the sale of confiscated cars works: rules

Every year, defaults on bank loans are only increasing. That is why the sale of confiscated property is gaining momentum today. It is important for banks to get their money back, and they are not interested in cars.

The procedure for selling confiscated goods is step-by-step:

Usually the original price lasts up to 3 months. If within 1.5 months the proposed lot (if put up for auction) has not attracted the attention of buyers, then the price may immediately be halved. This is already becoming extremely attractive to potential buyers.

As a result, you can purchase a vehicle 20-30% below the market value. After receiving the act on the results of the auction, you can re-register the property as your own.

What is hidden behind the low cost of confiscated goods: pros and cons

The bank involves dealers in the sale of confiscated goods, so the auctions proceed quite quickly. But difficulties arise, of course, for consumers.

An easy benefit can turn out to be a lot of problems

Disadvantages of such a purchase:

• selling a car blindly, i.e. the buyer does not see it with his own eyes and no one is responsible for its safety while it is idle and waiting for its time to be sold;
• the need to make an individual non-cash deposit when taking part in the auction. He will then return if the lot is not purchased;
• concluding a transaction in digital format, with putting your signature before participating in the auction, for which you will also have to pay ;
• the presence of at least 2 people to conduct auctions when difficulties arise in finding a second buyer;
• a significant difference between the final price and that indicated in the lot upon purchase. As a result, it may not be lower than the market price;
• the presence, one way or another, of encumbrances on any confiscated car, and this is the main disadvantage . Even when purchasing such a car, it can take quite a long time for the encumbrances to be completely removed. Registration may take a long time;
• mandatory payment of VAT and commissions (in particular for idle cars in the parking lot). When buying through a car pawnshop, you will have to agree to all its terms and pay additional services.

The advantages of this deal:

• purchasing exclusively serviceable equipment, of which there is no doubt, because before putting it up for auction, it undergoes a mandatory technical inspection;
• possible purchase of both a passenger car and a dump truck, bulldozer, semi-trailer ;
• reliability and low cost when purchasing from a bank;
• guarantee of providing a complete document for an expensive vehicle.
• Quite a quick purchase.

3 ways to buy repossessed cars

The vehicle can be sold through:

An auction is the most preferred option for car enthusiasts. The auctions offer good discounts, which are not offered even at car dealerships that widely advertise themselves.

From auction

Bailiffs put the car up for auction with a package of necessary documents within 2 months after confiscation.

The car does not go up for sale immediately – only after being assessed by specialists

The sales procedure is as follows:

• submission of an application by the buyer to participate in the auction;
• making the first deposit taking into account the price of the lot;
• in case of purchase - payment of the remaining amount;
• after 10 days - drawing up a special protocol on the sale of the car by the auction organizer;
• handing over a package of documents and car keys to the new owner.

Buying a car through an auction is more profitable than from financial institutions. There is only one risk, but a significant one. If the old owner decides to challenge the seizure of the car in court and wins the case, then the car will have to be returned. Although the money will be returned to the buyer in 2-3 months in full.

Via bank

Often the initiators of the sale of confiscated property are the banks themselves, but on the basis of a final court verdict. Although the disadvantage of buying a car through a bank is inflated interest rates. Since the cost of the car does not always cover the total debt.

The main thing for banks is compensation for losses, there is no goal here to make money from selling cars

pros:

• frequent offering of such confiscated property for sale by banks;
• the possibility of purchasing a vehicle inexpensively;
• quickly buy a car and just contact the bank, write an application, participate in the auction, make a payment and go home in a new car.

The deal is worth it if you can get it for 20% less than the actual cost.

Banks have the right to engage dealers and third-party intermediary companies to sell confiscated property. Some companies willingly agree to sell such machines via Internet networks, charging a certain percentage for their services.

Moreover, there are a lot of scammers on the Internet. Under the pretext of a confiscated car, they are trying to sell a car or truck that was imported from abroad, has not passed customs clearance, has no license plate, has serious defects, or has been in an accident.

Buyers need to be vigilant.

Official website for the sale of confiscated cars: how it works

You can find out what confiscated vehicles are available on the official website of the State Traffic Inspectorate or the websites of intermediaries .

A list of new confiscated cars seized from debtors to the bank is offered. All you have to do is select an acceptable option and fill out the form provided in the window.

As a rule, the cars are new, without a long service life, purchased on credit. So, basically straight away - from the car showroom.

Buying a confiscated car is a lucrative business. But lawyers remind you to be careful! Carefully check the purity of transactions and documents for the car, find out in advance the reason for the seizure.

There are many services that are ready to check a vehicle for all kinds of encumbrances and thefts for a certain amount of money.

Don’t forget to take certificates of removal of arrest and restrictions before going to the traffic police to re-register your car.

If, after all the difficulties, you are interested in buying a new car for reasonable money, we recommend our review of the best economy class cars in Russia.

Sale of cars from bailiffs

Cars seized by bailiffs from debtors can currently be purchased in any region of the country. The procedure for the sale of seized property is established by Government Resolutions No. 1041 of 2015 and No. 1300 of 2016. It is carried out below market prices. This causes increased interest among potential buyers in cars seized by bailiffs. The seizure of debtors' property carried out by the FSSP is an irrevocable procedure.

How does a car get to the bailiffs?

The regulations in force in the Russian Federation provide bailiffs with the right to confiscate and further sell the property of debtors. It is carried out in accordance with the procedure established by law. The arrest and confiscation of a car are compulsory measures. They can be carried out on the basis of a court decision in civil or criminal proceedings taken in relation to legal entities or individuals.

The bailiff who opened the enforcement proceedings is obliged to give the debtor 5 days to voluntarily repay his financial obligations. After this period, he seizes the property. The vehicle is one of the first to be described.

The procedure for seizing a car is the imposition of a complete ban on any registration actions in relation to vehicles in the traffic police.

After the property is seized, the debtor is given additional time to repay debt obligations. It is determined by law for a period of 2 months. The car is seized in the presence of two witnesses. During the process of arresting a car, a protocol is drawn up, as well as:

• the technical passport of the vehicle is confiscated;
• the data displayed on the speedometer is recorded;
• An inventory of the car’s equipment and its internal and external defects is compiled.

The debtor bears criminal responsibility for ensuring the safety of the seized vehicle until it is confiscated by the FSSP .

The vehicle itself is sealed. The next stage of property confiscation is its sale.

Methods for selling a vehicle from bailiffs

Seized cars can be sold by bailiffs to pay off financial obligations:

• Banks. In the case where the financial institution is a creditor, and the parties were able to reach an agreement on the method of settling debt obligations.
• The territorial branch of the Federal State Property Agency, to which cars seized by the FSSP are transferred.

The existing procedure for the sale of seized property by bailiffs allows the Federal Agency to sell it through specialized organizations and electronic auctions conducted since 2016. They arouse the greatest interest among buyers due to the lowest selling prices of confiscated goods. The venues for holding them have the appropriate permits.

The procedure for selling a car by bailiffs provides for various options for reducing the initial sale price of the vehicle. The vehicle is sent for sale after its value has been assessed. It is carried out by experts from specialized organizations involved in the sale of confiscated property. State or private organizations can act as property sellers.

According to current regulations, the period for conducting an examination and evaluation of a seized vehicle should not exceed 10 days. The sale of vehicles seized from debtors by bailiffs through a bank can only be carried out in relation to cars pledged to financial institutions. The procedure for purchasing a car on the electronic platform includes:

After full payment for the car, it can be received by the buyer from the seller. Auction participants can inspect the vehicles being sold from bailiffs before submitting an application for its purchase. After winning the car at auction, the buyer is given 10 days to pay the full cost of the car.

The assessment made by experts or bailiffs of a car seized for sale is transferred to the Federal Property Management Agency. It is this body that makes the decision to sell the vehicle. If there is a potential buyer, the initial price for the car can be set in accordance with the proposal of the party interested in purchasing it.

Sellers of seized cars are required to agree on the cost of their sale with the FSSP . Information about the terms of the auction is posted in local media and on electronic resources of organizations selling cars 1 month before the start of the auction. The period for selling cars from bailiffs is determined by current legislation at 60 days. Auctions are considered invalid:

• in the absence of applications for participation in them or in the presence of one buyer;
• if the buyer refuses to buy the car.

After failed auctions, repeat auctions are held.

The starting price of a car upon re-sale is reduced by bailiffs by 15%. This procedure is established by Federal Law No. 229. Buyers of vehicles seized by the FSSP can be legal entities and individuals. In order to be admitted to the auction, those interested must submit an application, a package of documents for participation and make a deposit of at least 5% of the initial cost of the car.

Selling a car from bailiffs through a bank

In the current practice of confiscation and sale of debtors' property, there is an option in which the initiator of the confiscation of the car is the bank. The basis for the sale of a car from bailiffs through a creditor, as well as all other options for seizure of property, is a court decision.

The cost of selling a car by a bank is significantly higher than what is offered on other sites. When selling seized collateral equipment, the financial institution tries to recover the amount of the loan and the interest that the bank was unable to collect from the borrower. Banks can sell equipment through specialized companies, websites and dealer networks.

The bank can only sell technically sound vehicles.

The most common way banks sell equipment is through specialized companies. You can also buy property seized by bailiffs from the bank through an auction. Sberbank holds similar trades every month. The cars exhibited there have all the necessary documentation.

Selling a car through an intermediary company

The territorial branch of the Federal Agency for State Property Management acts as the seller of seized property after its seizure by bailiffs. The sale of seized vehicles by specialized companies can be carried out on the basis of a contract they have concluded with this structure. The company’s contract with the Federal Agency for State Property Management determines the initial sales price of the car, the amount of the required deposit, and the size of the cost increase step.

Since 2016, specialized organizations have been allowed to sell cars confiscated by bailiffs using electronic auctions. If a car is not in demand, it is removed from auction. The car is put up for re-auction at a 5% discount from the initial estimated value.

Transport, the estimated cost of which is less than 100 thousand rubles, can be sold to the citizen who first submitted an application to purchase the car.

Step-by-step instructions for selling a car from bailiffs

Before handing over a seized vehicle for auction, the FSSP prepares a package of documents. Their list is determined by current legislation. Among other documents included in the kit, bailiffs need to prepare:

• Certificate of acceptance and transfer of the vehicle.
• The resolution on the basis of which the arrest was imposed by bailiffs.
• Technical passport for the car.
• Documents confirming ownership.

The documents collected by the bailiffs for the car are transferred to the Federal Property Management Agency, which gives them to the specialized organization selected for the sale of the equipment. Documents are posted on the Internet in the public domain before the sale begins and any interested person can view them. Along with the documents for the vehicle, the terms of the auction are posted on the electronic platform.

Legal entities and individuals who are residents and non-residents of the Russian Federation can take part in the auction. The application for participation in the auction has a standard form. Along with it, documents and information are submitted electronically, including:

• Full information about the auction participant. For an individual: full name, tax identification number, copies of passport with registration. For legal: statutory documents, TIN, OGRN, etc.
• Email address for sending information about electronic trading.

All information submitted by the applicant before the start of the auction is verified by the organizers of the auction. Acceptance of applications for participation in the auction for the sale of a car begins 25 days before the start of the auction and ends 3 days before the date of the auction by bailiffs. Auction participants receive daily notification of new bid documents received. You can withdraw your application 1 day before the announced date of the auction.

Current legislation prohibits electronic trading on the days of site maintenance.

A list of persons who have applied to participate in the auction and are not admitted to it is posted on the electronic trading website before it begins. Registration of auction participants is free. In practice, there are cases when, after posting an advertisement for an auction for the sale of a car by bailiffs, not a single application is submitted to participate in it. In this case, repeated auctions are scheduled, at which the initial price of the lot is reduced.

It is allowed to lower the discount when holding a repeat auction up to 30%. If it fails, the next auction is held, at which the discount from the market value can reach 60%. The progress of the auction is recorded in an electronic journal. His data is drawn up in the form of a protocol. It is sent to the seller of the vehicle within 1 hour after the end of the auction.

Along with the auction protocol, information about the closure of the auction and its winner is posted on the electronic platform. At the same time, the winning bidder is sent a notification about the location of the vehicle seized by the bailiffs. You can pick it up from the seller’s site after full payment of the cost of the car.

Cost formation

A bailiff can evaluate a car independently if, in his opinion, it is not worth more than 30 thousand rubles. To determine it, the comparative sales method is used. It is based on a comparison of existing market prices for similar types of transport at the time of assessment. Independent experts are hired to evaluate vehicles costing more than 30 thousand rubles.

In some cases, bailiffs take the book value of the car as the basis for the assessment. This situation arises when the transport of a debtor, who is a legal entity, is seized. The assessment made by the bailiffs can be challenged by the owner of the property or those who were involved in collecting the debt in court. Legal costs are borne by the party challenging the assessment results.

The nuances of selling a car from bailiffs

Despite the opportunity to buy property seized by bailiffs at prices below market prices, not everyone decides to use this method of purchasing a car. This is due to some subtleties of the current legislation in the Russian Federation. When purchasing confiscated goods, you must pay attention to the category to which it belongs. Seized property in criminal cases is not subject to sale. It must be destroyed if it was intended for enrichment purposes. This procedure is established by Article No. 86 of the Code of Criminal Procedure of the Russian Federation.

The purchase of a vehicle seized by bailiffs can be challenged in court if during its sale the slightest violations of the procedure and rules for the sale are discovered. The participants can challenge the transaction. In practice, most often, transactions involving the purchase of vehicles pledged by banks are disputed. A spouse terminates a car sale transaction through the court in cases where they were sold by the bank without the consent of the borrower.

When purchasing a car seized by bailiffs, the buyer must receive from the seller, along with the documents for the vehicle, a purchase and sale agreement.

Sale of pledged cars by Sberbank - how to buy a confiscated car on lease

Not everyone has the opportunity to purchase the required car by immediately giving the seller the full amount of money for movable property. A subsidiary of Sberbank PJSC, Sberbank Leasing, sells seized cars to legal entities and individual enterprises for leasing. It is common for buyers to take out a loan, but in cases of business it is often more profitable to purchase enterprises, equipment, and cars on lease.

Conditions for selling a seized car at Sberbank

The sale of pledged cars by Sberbank or any other bank does not happen by chance. The borrower once took out a loan for a car because he expected that in a few years he would pay off the loan and become the owner of his own car. If the borrower becomes completely insolvent and his guarantor is also unable to pay the loan debt, the property is seized (if it was collateral) and put up for sale or auction. The car is being assessed; practice shows that the price is always below the market price, which is naturally attractive to buyers, since the car has low mileage and is in good condition.

What should you do if you decide to purchase a repossessed car?

• Select the car you are interested in in the register of confiscated property on the bank’s website or by contacting the branch.
• Specify when and at what time the auction will be held;
• Fill out an application at the bank for participation.
• Obtain a bidder number from a bank branch;
• Pay the state fee;
• Register on the electronic trading platform lot-online.ru. At the ETP you will participate in either closed or open bidding. Your price should be higher than the base price. After the winner is determined, time remains to determine the “backup” buyer, in case the first one refuses the deal within 10 days.

• If the decision is positive, it is necessary to issue a written request for the issuance of the vehicle and a notarized tender protocol.

After the purchase, unpleasant surprises are possible, for example, it turns out that the car is stolen, there are unpaid taxes or other debt. Also, if the borrower proves that the seizure of the collateral is illegal, he can return his car through the court. Therefore, before conducting a transaction, it is necessary to carefully check all documents.

How to buy a pledged car from Sberbank: necessary documents

To purchase a seized car that is pledged against a loan, you must:

1. When you first contact the bank, you must take your passport with you.
2. When you have already chosen a repossessed car, you need to find out the full amount of unpaid monthly payments (amount + interest) and late fees and only then sign an application to pay off all debts on the car.
3. Execution of an agreement for the purchase and sale of movable property with the obligatory indication of the full amount of the pledged vehicle (the agreement is drawn up only with the consent of the bank, otherwise the operation will be invalid).
4. When paying off the balance of the car at the cash desk, your name must be indicated on the cash receipt order.
5. Obtaining a certificate of repayment of the loan in full and closing of the bank account.
6. Certificate from the unified register of pledges (certifying that the encumbrance has been removed from the vehicle).
7. Obtaining a technical equipment passport (PTS).
8. It is necessary to register with the traffic police.

After you have paid off the debt on your own behalf, all you have to do is pay off the debt with the borrower (seller). Before this, we recommend that you take a receipt, and before you receive the PTS, it is better to leave the car in a guarded parking lot to protect yourself from unexpected situations.

Car leasing for legal entities - Sberbank conditions

The following conditions are offered for secured cars from Sberbank, which a legal entity plans to lease:

1. You can buy a car of foreign and domestic production, for example, Volvo, Audi, Skoda, Volkswagen, Citroen and others.
2. You can purchase a whole fleet of vehicles or just one car. If the vehicle is intended for the transportation of goods, you can choose a maximum weight of up to 800 kg, for passenger transportation - up to 8 seats.
3. The leasing agreement can be drawn up for a period of 12-37 months.
4. The first payment is 10% of the cost and more.
5. The maximum amount of financing is 24 million rubles.
6. The client can choose the appropriate schedule:

• annuity (equal payments throughout the entire term);
• differentiated (the principal payment is the same in amount, and interest decreases monthly as it is accrued on the balance);
• decreasing.

1. The transaction is completed within 1-2 business days.
2. The car is listed on the balance sheet of either the lessor or the lessee (by agreement).
3. CASCO and MTPL insurance must be taken out at the Sberbank Leasing insurance company.
4. The transaction is executed only in Russian rubles.

In order for the bank to approve such a transaction, it is necessary that the business of the legal entity be successful and have a positive balance sheet for more than six months and there are no losses, the enterprise must have sufficient equity capital and, if loans have already been taken out, the credit history must be positive.

Terms of car leasing in Sberbank for individual entrepreneurs

Individual entrepreneurs, as well as legal entities, have the opportunity to lease a car. The only significant difference in the conditions for individual entrepreneurs is that all depreciation costs and vehicle maintenance costs fall on the individual entrepreneur. For an entrepreneur, the package provided will also be slightly different.

In the leasing agreement, it is possible to stipulate a clause on the extension of the “lease” or the purchase of the car at the residual value.

Where to find a catalog of confiscated cars offered for sale

Buying a seized car is quite a good deal. For a client who is faced with such a purchase for the first time, it is clear that the question will arise: how is the sale of confiscated cars carried out, for example, by Sberbank, if he is already a client of this bank or on recommendation. Well, of course, if you haven’t found anything suitable at a particular bank, where can you find an interesting option?

Seized cars are put up for sale

Author: lawyer Povysheva N. · Published 04/25/2017 · Updated 07/23/2019

As part of enforcement proceedings, bailiffs have ample opportunities to search for property belonging to the debtor. Thus, the bailiff has the right to seize any property, including a car belonging to the debtor. In this case, an order is sent to the traffic police prohibiting any registration activities with the vehicle. The debtor's car is seized and then sold through specialized organizations. The procedure for the sale of property is determined by Article 87 No. 229-FZ “Sale of the debtor’s property.”

Selling a seized car

The specialized organization is obliged, within ten days from the date of receipt of the debtor’s property under the transfer and acceptance certificate, to post information about the property being sold in public information and telecommunication networks, and about the property being sold at auction, also in the print media.

What cars were seized by the bailiffs?

According to the press service of the Federal Bailiff Service for the Republic of Bashkortostan, since the beginning of 2017, employees of the Federal Bailiff Service for the Republic of Bashkortostan have transferred debtors’ property worth more than 600 million rubles for sale. To date, 50 seized vehicles have been put up for sale. Here is a list of all those for sale:

Car ZAZ VIDA 2012 Price - 248,000.00 rubles.

VAZ 211030, 2004 Price - 91,000.00 rubles.

VAZ 217030, 2010 Price - 201,000.00 rubles.

KHODRO Samand, 2007 Price - 126,000.00 rubles.

VAZ 21213, 2000 Price - 69,000.00 rubles.

Lada Priora, 2014 Price - 341,000.00 rubles.

VAZ 21120, 2004 Price - 49,000.00 rubles.

HYUNDAI SOLARIS, 2013 Price - 262,000.00 rubles.

GAZ 31105, 2006 Price - 53,000.00 rubles.

Daewoo Matiz, 2006 Price - 113,000.00 rubles.

VAZ 21120, 2002 Price - 69,000.00 rubles.

VAZ 11193, 2007 Price - 97,000.00 rubles.

VAZ 21074, 2004 Price - 19,980.00 rubles.

Chevrolet Niva, 2013 Price - 170,000.00 rubles.

Peugeot 308, 2011 Price - 282,203.39 rubles.

BMW 320 I, 2008 Price - 435,000.00 rubles.

Volkswagen Transporter, 1991 Price - 145,762.71 rubles.

UAZ-390945, 2012 Price - 141,525.42 rubles.

The sale of these cars is carried out by a specialized company - LLC “33 Trust”. All necessary information can be obtained from the specialists of this company.

more about how to protect property from seizure by bailiffs here.

How do auctions of seized property proceed: sales

How are auctions of seized property carried out?

Property seized by bailiffs is sold at auction in order to fully or partially repay the borrower's debt to the bank. I will tell you in this article how auctions of seized property take place and what their features are.

Content:

What can be seized and sold through auction?

The property of persons whose debt has been opened by bailiffs in enforcement proceedings is put up for auction.

At the moment when the debt and interest on it exceed a certain permissible threshold, the creditor has the right to go to court to collect it. If there are not enough funds in the accounts, the court may seize any property belonging to the debtor.

This is necessary so that the owner cannot:

• sell property at a profit;
• pledge it by taking out a new loan;
• donate or transfer it to other persons in order to preserve it.

I wrote in the article about what falls under the concept of “confiscation” and how it differs from seized property:

The entire process of selling seized property is regulated by Federal Law No. 229-FZ “On Enforcement Proceedings”.

In accordance with it, after a court decision on arrest, the debtor has 5 working days to repay the debt. Otherwise, his property will be seized and put up for auction.

The procedure for the sale of seized property

After the court’s decision, control over all seized property passes to the federal agency “Rosimushchestvo”, that is, in fact, becomes the property of the state.

It is subject to independent appraisal to determine its value. This ensures that the price of the property is favorable for the potential buyer, since it does not include anyone’s profit from the sale.

Everything that costs more than 30,000 rubles is assessed with the involvement of experts. The cost is formed from:

• the average market value of this type of property with similar characteristics;
• assessing the condition of objects and the need for repairs.

Since almost any interested person can participate in the auction of seized property as a participant, this makes this method of purchase the most profitable. The cost of such property is always below the market value, although the condition of the apartment or car may be very good.

After evaluation, all lots come under the jurisdiction of the auction organizer, who is responsible for their implementation. He must carry them out within a period not exceeding 2 months from the date of transfer of property to him. Sales take place through commission sales, auctions or public auctions.

The announcement of the auction is posted on the official website of the FSSP, on federal resources for auctions and tenders and in the media. The auction itself takes place on special platforms in electronic form.

After the expiration of the allotted period, the auction may not take place. This will happen if:

• less than two applicants will apply;
• only one participant will appear at the auction or no one will appear at all;
• none of the contenders will increase the starting price;
• The winning bidder will not transfer the difference between the advance payment and the full cost of the purchased property within 5 days.

After 10-30 days, the auction will be held again. In this case, the cost of the lot will be reduced by 15%. The exception is the case when the reason for the failed auction is the winner’s failure to pay the cost of the lot. In this case, it will remain the same.

If the property is not sold during the re-auction, the creditor has the right to keep it by paying 75% of its value from the first price determined by the appraisers. If the claimant waives this right, it is transferred to other creditors. If everyone refuses, the unredeemed property is returned to the debtor.

This feature makes auctions of seized property less profitable.

Seized property, on the contrary, falls in value only once.

Newbies to the bankruptcy bidding industry fear that lots offered at too attractive prices will bring more worries to the buyer than benefits.

The problem is that without experience and training, they do not know how to distinguish a truly profitable offer from a “pig in a poke.” Among other things, for this reason, interesting lots remain without much interest in them, although they can bring up to 300% profit with the right approach.

On this topic, my team is conducting a free master class, where we talk about how to buy apartments, cars and other objects at a price up to 90% below the average retail price and without buying unnecessary problems.

Click on the button and sign up for a free master class to learn about the 5 steps of Dr. Watson's Formula, how to buy cars, apartments and houses at bankruptcy auctions with a 50 - 90% discount!