First, it is troublesome to take a house according to law. If you want to take a house according to law, it's probably not that easy. On the one hand, it is occupied by others, and you really have no better way. On the other hand, if the tenant has signed a lease contract with the original landlord, then you can't drive others away.
According to Article 229 of China's Contract Law, if the ownership of the leased property changes during the lease period, the validity of the lease contract will not be affected. In other words, although this house is yours, it does not affect the validity of his rental contract. It's easy for you to let him go, so you need to pay liquidated damages. Either the contract expires and it will be even worse for you if you meet someone who has rented it for ten years or 15 years. So it's really troublesome to shoot a house, very troublesome.
According to my friend, 100 suite is successful, and 10 suite is very good. Imagine that if the occupancy rate is very low, it can prove that the auction method is far from as simple as we thought.
Second, the auction house has a short payment cycle, difficult loans and no corresponding after-sales service. Generally speaking, the auction house must pay in full, and there are few loans. Why? Because since the court wants to auction, it naturally wants to quickly accumulate funds to repay debts. At this time, loans can still be allowed. Isn't that asking for it? So in order to solve this problem faster, it must be the full amount.
Moreover, this payment period is very short, usually 3-5 days, and a little longer can be 5- 10 days, so not only the payment period is very short, but also the loan is very difficult. Of course, it does not mean that the loan cannot be made. After you pay in full, you can still apply for a mortgage loan according to the loan conditions of the collateral, but the cost and interest will be higher.
Another situation is that the auction house has no after-sales service, which means that the court only cares about the success of the auction. Once successful, the follow-up questions have nothing to do with them, and only provide you with a proof at most. In the end, these things have to be handled by yourself.
Third, there are many hidden costs of auction houses. There are too many reasons why the auction house will become an auction house. At this time, there will be a lot of expenses, for example, the property management fee has not been paid for several months or a year.
There are also cases where utilities have not been paid for several months, or the cost is relatively high. At this time, these expenses need to be borne by themselves. In short, all these hidden expenses add up to a lot.
Fourth, the property rights are unclear. My friend told me that many auction houses have unclear property rights. For example, the original landlord may be a couple, but divorced after the auction. At this time, if you want to go out of the house, you need two people to come forward. Is this troublesome?
Another is that the house may have changed hands three or five times in your hands, so it is not clear who the property rights ultimately belong to. In other cases, the original landlord went to some online loan companies for loans before the accident. At this time, the online loan company also owned his property rights. Of course it is difficult for you to transfer ownership.
Through the analysis of the above four points, we can see why the house auctioned by the court is so cheap, but no one wants to buy it, because there are too many troubles hidden behind it. Handling it not only hurts people, but also hurts money. So in the end, no one will want to buy it.