Vincenz Villa goes under the hammer: Here’s how the foreclosure auction works

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Pierin Vincenz’s (67) holiday home in Morcote TI will be foreclosed in the spring of 2024. What exactly does this mean? Can anyone view the property and make an offer? Is forced auction appropriate to achieve the highest possible selling price? Blick answers the five most important questions.

A foreclosure auction always occurs when money needs to be raised. In Vincenz’s case, the real estate company Tecti is demanding its money back from Dölf Früh (71) as a mortgagee. Vincenz helped finance the villa in Morcote early on, with 4.3 million francs in 2019.

A foreclosure auction is almost always open to the public. There may be restrictions only in exceptional cases; According to the responsible authorities in Ticino, it is not yet clear whether this will be the case in Vincenz’s villa.

Markus Zöbeli (53), debt enforcer and mayor of Dübendorf, has conducted many foreclosure auctions and knows exactly how they work. There are usually two public viewing appointments in advance. Anyone who wants can come here. Participants do not need proof of presence or anything like that. “Most of the time we are disturbed by neighbors or onlookers who join just out of curiosity,” says Zöbeli.

Anyone can bid. “Only after the contract is accepted does an irrevocable promise of payment have to be made,” says Zöbeli. This is between 5 and 10 percent of the property’s estimated value. If no payment promise is made, the increase will continue with the next lower offer.

First, second and third! Until a few years ago, an auction was a good way to achieve the highest possible sales price. However, because foreclosure auctions occur under time pressure, the opposite can also occur and the final bid may be significantly below a property’s market value. After the third hammer blow, the property becomes the property of the highest bidder in both cases.

Source :Blick