Real Estate Auction Training(2)

How do I apply for an auction?

Application for auction is in writing. Of course I shouldn't say it, right? When you apply for an auction, you have to pay the fee first, not for free. So who should pay? First, the creditor who applies for the auction pays. However, this cost is the first to receive dividends at the end of the auction at the end of the day. However, are these auction costs always returned to zero? If you ask me that, I might not.

There's this thing called surplusism. You can understand that the auction proceeds only when the creditor who applied for the auction can receive at least 1 won in dividends. For example, there is an apartment worth 500 million won. Let's say that this apartment has 500 million won in first-priority mortgage and 500 million won in second-priority mortgage. In this case, the right to collateral security is a real right, and there is a right to preferential repayment. Therefore, if the first priority mortgage receives all dividends first and there is anything left, the second priority mortgage will receive dividends.

But let's say that the apartment is 500 million won, but considering the winning bid rate these days, it's 400 million won. Then, if the first mortgagee applies for an auction, there is no problem with surplusism, and if the successful bidder pays the balance, the first mortgagee who applied for the auction will be allocated the auction cost first. You will then receive dividends on your bonds.

However, if the second-ranked mortgagee applied for an auction under the above conditions, and it was sold for 400 million won. In this case, can the second-ranked mortgage holder who applied for the auction receive a dividend of even 1 won? The answer is no.'

In this case, the auction will not be allowed or canceled. Also, there is no way to get the auction fee back. Therefore, rather than vaguely thinking that I should apply for an auction because there is a debtor's real estate, I should get a copy of the registration and consider whether there is a problem with surplusism when I apply for an auction.