1. Generally speaking, the bank is the first mortgagee of the house. If it fails to repay the bank loan on time, the bank has the right to sue the court and then apply to the court for auction of the house. The proceeds from the auction will be used to repay the loan. In this mortgage state, only the bank can auction your house. If other creditors want to apply to the court for auction of their houses, they must obtain the consent of the bank, and the proceeds from the auction will be repaid to the bank first, and the rest can be given to this creditor.
2. Legal basis: Article 16 of the Provisions of the Supreme People's Court on Auction and Sale of Property in Civil Execution of People's Courts.
In the auction process, when the highest bid appears, the preemptive right holder can say that he will buy at the highest price; If there is no higher bid, it will be returned to the preemptive right holder; If there is a higher bid, but the preemptive right holder does not express it, it will be auctioned to the bidder with the highest bid. If multiple preemptive rights holders in the same order express their acceptance at the same time, the buyer shall be determined by drawing lots.
Second, what is the auction procedure?
1, preparation stage. The owner transports the goods to the auction site → entrusts the auction house to select the batch → the auction house compiles the catalogue to attract buyers. Buyers who participate in the auction can go to the warehouse to inspect the goods within the specified time to understand the quality of the goods → draw up their own bidding standards and make preparations before the auction. Auction houses generally provide various written materials for publicity to expand their influence;
2. Official auction. A formal auction is a bidding transaction at a specified time and place in the order specified in the auction catalogue. In the auction process, every bid of the buyer in the formal auction is equivalent to an offer, and when another bidder bids higher, the offer will be invalid. After the auction host expresses acceptance on behalf of the seller by hammering, the transaction is reached;
3. Transaction and delivery. After the auction is completed, the buyer signs the transaction confirmation, and the auction house collects a certain percentage of commission from the client and the buyer respectively, and the commission generally does not exceed 5% of the transaction price. Buyers usually pay in cash and pick up the goods at the designated warehouse according to the delivery situation of the warehouse within the prescribed time limit. Because buyers can see the goods in advance before the auction, there are fewer claims afterwards. However, if the goods do have defects, or the auctioneer and the client cannot guarantee their authenticity, they must declare in advance, otherwise the auctioneer will bear the warranty responsibility.