Is there a cooling-off period after an auction?

Face-to-face reverse auction

The total or partial cancellation of the outstanding debt can be achieved on the basis of a methodical work against the bank. For them you have read all the measures and tools that you have in your hands in our entry. This work or guerrilla warfare is aimed at getting rid of the debt and the house. The more you have paid the more you have the right to raise this solution.

Do not confuse this solution with the explanation of the dation in payment that we have in this post. In all cases, except in the dations fruit of the Decree of Second Chance of the government (27 February 2015) the forgiven debt is taxed to the Treasury as an income, attention!

The partial debt write-off has been one of the formulas that some countries like Iceland applied on households instead of saving the banks. Banks will always refuse such a formula because they have a lot of power in this country.

Individuals can already file for insolvency proceedings if they feel they cannot pay their debts but not for mortgage debts. Thus, if a person could not pay the mortgage, he/she still owes money to the bank even if he/she has handed over the house, and this debt cannot enter into a bankruptcy regime supervised by the judge to reduce the payments.

Examples of reverse auctions in Colombia

These hypotheses are regulated in article 671 of the Civil Procedure Law. It establishes the distinction between the amounts at which the creditor can be awarded the property, depending on whether or not it is the debtor’s habitual residence.

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If it is not the debtor’s habitual residence, the creditor may request the adjudication for 50% of the value at which the property would have been auctioned or for the amount owed for all concepts.

If it is the debtor’s habitual residence, the award will be made for an amount equal to 70% of the value for which the property would have been auctioned or, if the amount owed for all items is less than this percentage, for 60%.

Normally, when there are no bidders at an auction, which is called a deserted auction, the creditor will request the adjudication of the property in its favor. But if he does not do it in the 20 days established, the seizure of the property will be lifted.

Reverse Auction in Public Bidding

Next, a screen will be displayed indicating the Automatic Resumption Date of the auction and a Remarks field. This date of resumption of the auction is reported by the Judicial Auctions module to the BOE Portal in the sending of the status change to ‘Suspended’.

If the auction is reported suspended and during the period until the Resumption Date no action is taken by the Court, BOE will resume the auction on that date. The period of time (15 business days) until automatic resumption is regulatory in nature and is fixed by law.

A notice will be sent to the user 10 days after the auction has been suspended, reminding the user of the status of the auction. The suspension is always at auction level and no bids may be placed on the lots comprising the auction.

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If you do not wish to suspend the auction, click on the Back button to return to the previous screen to consult the auction data or cancel the suspension of the auction.

What is an auction set

In addition, in view of the experience to date, and in order to restore the confidence of borrowers, provisions have been introduced with the aim of enhancing legal certainty, transparency and understanding of contracts and their clauses, as well as a fair balance between the parties.

Directive 2014/17/EU recognizes in its recital (3) that “The financial crisis has shown that irresponsible behavior by market participants can undermine the foundations of the financial system, (…) and can have serious social and economic consequences”. In particular, the Directive highlights in its recital (4) that “the Commission has identified a number of problems in mortgage markets in the Union related to irresponsible lending and borrowing, as well as the potential scope for irresponsible behavior among market participants, including credit intermediaries”.

Is there a cooling-off period after an auction?
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