LM Legal Services Blog

All repossessed apartments which are sold by the judicial executors are already publicly announced in the regional courts. This practice came into effect with the launch of new Civil Procedures Code on 1 March 2008. Before that all judicial executors used to hide these sales as usually these properties have been sold for very cheap and well informed buyers used to acquire them.

The lists in Sofia are published in the family department of the Sofia Regional Court, which is situated in the building of the former head quarters of the Building Corps on Tsar Boris III Blvd. Because of the court holidays in August, the building was closed, but now it has re-opened doors. Already there are companies which purchase apartments at these sales at a much lower price and then re-sell them.

The banks wait for a few months for clients who are late with their mortgage instalments. After that they sale the repossessed property, and if the sale price exceeds the amount of the debt, according to the law, the former owner receives the difference. According to the Chairman of the Private Judicial Executors’ Chamber, “the problem is the sale price of a repossessed property, because it has to be 50% of the tax evaluation as per the new Civil Procedures Code and it is rather low.” That is why the judicial executors are forced to give higher evaluations of the prices of repossessed properties.

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