Forensic auction house, that is, a property that has been compulsorily auctioned by the court due to debt disputes and other reasons. When a foreclosure house fails to be auctioned three times in a row during the auction process, it is called "three unsuccessful auctions".
Processing. Lowering the starting price: After three consecutive failed auctions, the court may appropriately lower the starting price according to market conditions and creditors' opinions to attract more potential buyers to participate in the auction.
Creditor self-disposal: Creditors can choose to dispose of the property after the unsuccessful auction, such as through negotiation, debt redemption, etc.
Re-auction: The court may decide whether to re-auction the property based on the actual circumstances. If another auction is required, the court will reorganize the auction and announce the relevant information.
Other ways: Under certain circumstances, the court can also take other ways to deal with it, such as handing over the property to the relevant departments for management, renting, etc.
Suppose the starting price of a foreclosure house is 1 million yuan, and it has been unsuccessful after 3 auctions. At this time, the court can reduce the starting price to 900,000 yuan for another auction according to market conditions and creditors' opinions. If the auction is unsuccessful again, the creditor can choose to negotiate with the debtor to repay the debt, or the court will decide to hand over the property to the relevant departments for management or rent.
According to the Civil Procedure Law of the People's Republic of China and the Provisions of the Supreme People's Court on Several Issues Concerning the Enforcement of Cases, there are the following relevant regulations on the handling of foreclosure houses:
The court shall announce relevant information before the auction to ensure that the auction is open, fair, and just.
After the auction fails, the court shall reasonably adjust the starting price according to the opinions of creditors and market conditions.
Creditors can dispose of the unsold property on their own, but they should comply with relevant laws and regulations.
When deciding on another auction or other disposition, the court shall fully consider the interests of all parties and the public interest.