What Is a House Auction?
Court auction houses, also referred to as foreclosures, are referred to as silver masters in Hong Kong and refer to houses that have been enforced by the court for auction.
Court auction house
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- Chinese name
- Court auction house
- Short name
- Foreclosure
- Hong Kong
- Silver master
- Features
- No resale or resale
- Court auction houses, also referred to as foreclosures, are referred to as silver masters in Hong Kong and refer to houses that have been enforced by the court for auction.
- When the debtor (owner) is unable to perform the mortgage contract or is unable to pay off the debt, the creditor applies to the court for enforcement through various judicial procedures, auctions the house in the debtor's name, and meets the creditor's right with the auction proceeds. The houses that were auctioned in the process were the so-called foreclosures or silver masters.
- Foreclosures are not necessarily seized from banks. Private seizures are also available. However, the amount of the house is too large, and each house has to borrow money from the bank. When the bank borrows money, it has to set up a mortgage right. Banks have the priority to receive compensation, which is one of the "executive names" of compulsory seizures, called auction collateral. The bank will apply to the court for the confiscation of the property sold after the mortgage clause and relevant civil laws.
- Buyer's lawyer is unable to make title inquiry
- The seller is not responsible for cleaning up any debris in the property
- No resale or resale, unless mutually agreed
- When foreclosures are sold, they need to be sold at market prices, conducted in the form of auctions, and those with the highest price are the main ones, and the repayment mechanism is allocated as follows:
- Silver master
- Creditor with property charge
- Related legal fees
- If the proceeds are more than the mortgage needs to be repaid, the balance will be returned to the owner
- Before the Asian financial turmoil, after the general auction of silver master disks, it was already possible to settle debts. However, after the financial turmoil, often after the main auction of silver failed to pay off the arrears, banks were reluctant to sell the silver master, causing many bad debts.