Provisions of court auction to pay debts with goods
If the auction fails during the execution period, the applicant executor may pay off the debt in kind at any time without being restricted by the second auction.
According to the relevant provisions of "Several Provisions of the Supreme People's Court on Auction and Sale of Property in Civil Execution of People's Courts", if there is no bidder at auction or the highest bid price of the bidder is lower than the reserve price, if the application executor or other enforcement creditors present apply for or agree to accept the auction property at the reserve price determined by auction, they shall pay off their debts.
The people's court may, in accordance with the provisions of Article 19 of these Provisions, hand over the real estate or other property rights that are still auctioned in the second auction to the application executor or other enforcement creditors to pay off the debts. If the application executor or other enforcement creditors refuse to accept or fail to pay off the debts according to law, the third auction shall be held within 60 days.
Can I buy a house by judicial auction?
Of course, the most attractive thing about auctioning a house is the price far below the market price. Some transaction prices are even only 60% to 70% off the market price. Because the price is generally cheap, it is considered as a new way of "scouring houses" and has attracted much attention. So can a judicial auction buy a house? What should I pay attention to? Judicial auction also hides many hidden risks. If you don't understand it deeply, you are likely to get into trouble and eventually "do more harm than good."
(1) There are few houses. This is a serious injury to the judicial auction, and there is less room for choice, so we can only pay more attention to it at ordinary times. If there is a house, you can watch it.
(2) Some people will be taboo. After all, debtors will be auctioned by judicial organs, so some buyers will have psychological obstacles.
(3) Most of them need a one-time payment. Most of the houses auctioned by judicial organs basically need a one-time payment, and buyers should consider it carefully before deciding to buy a house.
(4) When the property market is hot, the house price is not low. Clap, clap, clap, clap, clap, clap, clap, clap, clap, clap, clap, clap.
What should I do after the judicial auction fails?
The auction of judicial auction means that in the process of judicial auction, as long as the auction is not over, you can pay the deposit to participate in the auction at any time. If no one bids before the end of the auction time, the first auction of this lot will be regarded as a judicial auction.
According to the law, after the first judicial auction is aborted, a second auction should be organized within 60 days, and a total of three auctions can be held. If these three judicial auctions fail, the lot should be sold. After the failure of the first judicial auction, if the applicant and the person subjected to execution reach an agreement to sell the property to pay off the debts without harming the rights and interests of others, the court will allow it.
According to the relevant laws and regulations, if the first judicial auction fails, the starting price of the second and third judicial auctions shall not fall by more than 20% each time.
Legal basis:
Provisions of the Supreme People's Court on Auction and Sale of Property in Civil Execution by People's Courts (revised in 2020).
Article 16 If there is no bidder in the auction or the highest bid price of the bidder is lower than the reserve price, if the application executor or other enforcement creditors present at the auction apply for or agree to accept the auction property at the reserve price determined at the auction, they shall hand over the property to them to pay off their debts.
If more than two executing creditors apply for auction of property to pay off debts, the creditor with the first legal repayment order will be given priority; If the repayment order is the same, the beneficiary shall be determined by drawing lots. If the amount of creditor's rights payable by the debtor is lower than the price of the collateral, the people's court shall order it to make up the difference within a time limit.
Article 22 If the buyer fails to pay the price or the receiver fails to make up the difference within the time limit after the auction is completed or the debts are paid off with the auction property, the people's court may order a new auction. When auctioning again, the original buyer shall not participate in the bidding.
The original buyer shall bear the price difference, cost loss and commission caused by the re-auction price being lower than the original auction price. The people's court may directly deduct it from the deposit paid in advance. If there is still a deposit after deduction, it should be returned to the original buyer; If the deposit amount is insufficient, the original buyer may be ordered to return it; Refusing to pay, compulsory execution.
Article 23 If there is no bidder in the auction or the highest bid price of the bidder is lower than the reserve price, and the application executor or other enforcement creditor present at the auction does not apply for paying off the debt at the reserve price determined by the auction, the auction shall be conducted again within 60 days.