Could anyone indicate what happens after a property is repossessed by the Bank? Does the Bank auction it to get the market price or could they just sell it off privately to recover their mortgage only? Would appreciate any feedback. Thanks
The one that was reposessed in our village was sold at auction. It went for under the supposed market value but then Swiss valuation methods do not take into account more ephemeral factors as position and configuration.
the one I've seen was also auctioned and I believe the reserve existed simple to cover the capital owed to the bank. It went for about 70% of market value IMO.
The banks don't repossess the house, they (or anyone else who the owner in indebted to) will go to the cantonal prosecution office ("Offices des poursuites" in French) and request that an outstanding debt is recovered.
After a long process with insufficient or no payments received from the debtor the office may hold an auction to recover the debt.
You will find these auction announced in the local press or on the Cantonal website of the offices des poursuites, like here for example:
There is a private company that collects all the current auction information in CH here
It is possible to get bargains, friends of ours bought a house way under market value and another friend bought loads of equipment / tools for his garage.
This website - zwangsversteigerung.ch - and the publisher encourage people into buying an expensive publication which is no more than a compilation of freely accessible data.
Not sure exactly how the procedure goes- but yes, it is all dealt with by the 'office des poursuites'. In our local paper, there are regular 'adverts/notifications' by the Office de Poursuites re re'possessions, be it of private home, or businesses/restaurants/equipment sold to pay debts incurred and bankruptcy. These houses, depending on location and type/state of repair, etc- generally go for much lower than estimated price. Some people specifically look out for those as being good value, either for family home or for investment.
I have seen both scenarios, where the bank is selling the property directly, and where the property is sold by auction.
In the first case, the bank had an appraisal, they were looking to sell the house for what it was worth (in this case the house was in terrible shape, so mainly the land value). The owner was not bankrupt.
I think the situation of the debtor might determine in which fashion the property is dealt with.
To the OP, I don't know what situation you are in, but if you are the debtor, it is always best to try and make a deal with the bank and co-operate. The bank will also want to recover all their costs associated with selling the property and these can be very high.
If you are looking to buy a property that has been repossessed, best of luck. I have had some experience with this and it is not an easy process.
In most cases the property was in terrible shape. The occupant left all kinds of stuff in the house, (and I don't mean antiques) and basically you took it over as is. You do not always have a chance to see the property so if there are pet feces all over the basement, you won't know until you get a key.
An acquaintance of mine bought a property under these conditions and was shocked to find pets had been left on the property. The occupants had dog enclosures. I often walked by but they were so hidden I never saw the dogs left there.
So you never know what you will find. It can indeed be a buyer beware situation. One house we looked at was a knock down special. Had I not had the chance to look with an expert I never would have found this out.
This is where knowing the local artisans would be essential- to find out exactly how it was built, the state of repair, heating system, plumbing, electrics, a bit of family history of previous occupants, etc. Getting rid of furniture and even pet mess, as long as you are ready and prepared for this- is not necessarily costly- the above might be. You really need local knowledge on this.
The official cantonal auctions have all the details of the property/goods described (often with photos) and a report from an expert. They also detail the T&C's of the auction. They always have official visit days so potential bidders can inspect the lots before bidding. Take a look at one of the examples from my post.
Sounds like you are describing some other type of auction.
No, I am not. Let's just say that in some cases the responsible person is less diligent than others and viewings can be very, very limited. If the property is not vacant it can be very difficult to look around.
in my canton there's an official bulletin where all stuff gets written, including auctions.
There is a longish legal procedure that happens before that. It's described on the canton's website.
This stuff that goes through the state because of people going bankrupt is auctioned off.
I'm reading a posting about a house right now, and there's an official estimation of the value, and a much higher commercial estimation done by an expert.
I've also just read that the official estimation has special rules and does not go into details, coupled with the fact that it's artificially low, it makes me think that maybe this is what ecb was talking about in his post.
A quick thanks to ALL for feedback. As property owner I'm seeking legal advice without any further comments. Once again a sincere thanks to all for sharing your knowledge and experience.