What happens during a foreclosure

Foreclosure: The process of debt recovery

The most important thing about foreclosure and its process

When does foreclosure actually happen?

Foreclosure is the last possibility for the obligee to collect his claim if the debtor does not pay despite the due date and (multiple) payment reminders or reminders. But the reminder of the obligee alone is not enough to be allowed to enforce.

When can the creditor initiate enforcement?

The following procedure applies before any foreclosure: The obligee must obtain an enforcement title with an enforcement clause, e.g. B. an enforcement order in the judicial dunning procedure. The title must be served on the debtor.

How does the foreclosure work?

The execution of the foreclosure depends on which measure the obligee chooses. An attachment of property by the bailiff works differently than an attachment of an account.

Foreclosure process

Before a believer tries to defeat his claim by way of foreclosure to collect, a lot must have already happened. This is that last resortthat he has left to get his money after all. This is a judicial processwith which a creditor can forcibly enforce his claims.

What happens in the event of a foreclosure? The bailiff or another enforcement body seizes and realizes the debtor's assets and income against his will, as long as until the debt is paid.

However, this procedure is only possible under certain conditions. To the requirements foreclosure include:

  • enforcement order
  • Enforcement Clause
  • delivery

Before the foreclosure is presented in its process, we take a brief look at the previous history, i.e. at what must happen in advance in order for these compulsory measures to even occur.

Because the enforcement of a claim follows even before the foreclosure proceedings one specific sequence.

Obtaining the enforcement order: judicial dunning procedure or lawsuit

It all starts with a debtor being his Invoice not paid and he too Reminders the creditor does not respond. Often this switches on Debt collection agencies one that is supposed to help with the collection of the money. If this does not work either, there is nothing left than to initiate legal proceedings. Foreclosure is only the last stage in the process of debt collection.

Usually it divides Debt recovery in three phases:

  1. Obtaining a dunning notice
  2. Obtaining an enforcement order
  3. foreclosure

The judicial dunning proceedings is one for the believer simple and inexpensive optionto enforce his monetary claim. It is particularly suitable for claims that the debtor has not yet disputed or to which he cannot raise any objections.

First, in this way, the believer gains one Payment order. If the debtor still does not pay and does not file an objection, an appeal is filed by the obligee Enforcement order, the equivalent to a court judgment is. This enforcement order is a mandatory requirement for enforcement.

The debtor can however Objection to the payment order insert. Then the process turns into a due process of law.

The judicial dunning proceedings always stands before foreclosure. This process is necessary because the obligee must first obtain an enforcement order. Without this title, enforcement measures are not possible.

Of course it is also possible immediate action to raise, without a legal dunning to go through. If his action is successful, the court ruling represents the enforcement title required for enforcement.

The debtor pays also not despite the enforcement order or court rulingso the creditor can die foreclosure initiate to collect his money.

Foreclosure: The process is determined by your requirements

The above-mentioned prerequisites - title, clause, service - of a foreclosure determine its process.

The obligee has already obtained an enforcement order in court dunning proceedings or by way of a lawsuit. As a second requirement, he needs one Enforcement Clausewhich certifies that he is entitled to foreclosure. He must apply for this clause.

Then must the enforcement title (with clause) served on the debtor either before or at the start of foreclosure. The court serves judgments and resolutions. In the case of other enforcement titles such as the enforcement order, the creditor must take care of it himself. For this he instructs the responsible bailiff.

And how does a foreclosure work in detail from, after the title has been delivered? That depends on which enforcement measure the creditor chooses. He has the following options:

  • Enforcement of movable property (enforcement of movable property or attachment of property)
  • Enforcement in real estate (real estate enforcement)
  • Enforcement in monetary claims (debt enforcement)

Attachment of property by the bailiff: foreclosure and expiry

The Foreclosure on the debtor's movable property designated. The bailiff is responsible for this. He puts one on the debtor Garnishment order to. Mostly he announcesthat and when he wants to carry out an attachment. Sometimes the bailiff standseven without warning at the door. If he does not find the debtor, he informs him of a new visit and asks him to report immediately.

debtor do not have to let the officer into the apartment at first. However, they can hardly prevent the attachment by such a refusal, because the bailiff will judicial search warrant who allows him to catch up Break open the apartment door - at the expense of the debtor.

With this type of foreclosure, the process is as follows: The bailiff searches the apartment for valuables such as jewelry, expensive antiques, valuable pictures or high-quality electrical appliances. The bailiff usually takes hold of securities, jewelry and cash immediately.

He gives items that he does not take with him straight away with a Garnishment seal, the notorious "cuckoo". These things will be picked up later and publicly auctioned. The Proceeds benefit the creditorto compensate for its demands.

Indeed the bailiff may not seize all of the debtor's property. Necessary furnishings such as furniture and household appliances, clothing and things for professional practice cannot be seized.

The Removal of the pledge seal is punishable as a broken seal in accordance with Section 136 (2) of the Criminal Code (StGB).

Foreclosure in real estate: expiry

The process of foreclosure in real estate depends on the way in which this enforcement takes place. There are three options here:

All three possibilities begin with the fact that the enforcement creditor has an appropriate one Application to the enforcement court represents.

The foreclosure auction process

Before a foreclosure auction, the enforcement court must first have the Market value of the property establish. Because the auction should achieve at least the value of the property. As a rule, an expert applies this value.

Then the court puts one Auction date fixed and released these in the official notices. When it comes to the auction, the Rechtspfleger reads the announcement again. Then he calls for Submission of bids on.

Foreclosure: Procedure in the case of foreclosure and compulsory mortgage

In the case of receivership, a receivership administers the property. In this case the creditor gets the revenue z. B. from the property or the condominium. This can be, for example, rental or lease income.

In case of a Forced mortgage the debtor is obliged to take out a mortgage, which is entered in the land register and must amount to at least 750 euros. With this form of foreclosure the creditor receives no money. It serves him first and foremost as safety for his demands.

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Foreclosure: The process of debt recovery
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