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Foreclosure Law in Germany, including Berlin, offers a well-structured and legal process to help banks or other lenders recover money owed to them when borrowers default. Known as "Zwangsversteigerung", it involves auctioning the property to recover funds. As a complex procedure, it is influenced by the German Code of Civil Procedure and numerous federal laws.
Foreclosure processes are legal procedures, requiring deep understanding of the law. You may need a lawyer to guide you through the complexities of the foreclosure process, protect your rights and interests if you're the borrower, ensure legal requirements are met if you're the lender, contest the proceedings, or negotiate better terms with the bank. Legal advice can be invaluable in resolving issues and preventing potential problems.
In Berlin, foreclosure law follows the German federal laws. The lender must first obtain a foreclosure order ('Zwangsversteigerungsbeschluss') from the local court ('Amtsgericht') and provide valuation of the property. If a borrower defaults, after a notice period, the property is auctioned to repay the debt. Mandatory waiting periods and auction rules aim to ensure fair procedures and prevent exploitation. Moreover, the process respects tenants' rights, who are allowed to stay in the property for a period even after foreclosure.
As a borrower, you can legally dispute the foreclosure order, or halt the auction through full debt payment or a settlement agreement. You are also entitled to any surplus from the auction after debts, costs and interests are covered.
Existing tenants may still live in the property after foreclosure according to their rental contract. However, the owner must move out unless a tenancy agreement with the new owner is arranged.
Usually, the foreclosure action commences six months after the foreclosure order is delivered, during which the borrower can either repay the loan or object to the foreclosure.
Yes, full repayment of the debt or a settlement agreement with the lender can stop the foreclosure process. It can also be stopped if the court agrees to your objection against foreclosure.
If the property doesn't fetch its minimum price at first auction, a second auction may be arranged. If unsuccessful again, the court can either set a new auction, fix a direct selling price, or halt the foreclosure.
Good resources for advice on foreclosure process include governmental bodies like Berlin's local court ('Amtsgericht Berlin') and legal advice services like Verbraucherzentrale Berlin. Online legal platforms like 'anwalt.de' and NGOs like 'Caritas' also provide advice in this area.
If you are struggling with foreclosure in Berlin, it is important to discuss your situation with a qualified lawyer. Legal advice should be sought immediately after receiving a foreclosure notice. Gather all relevant documents and ensure you understand all your rights and obligations before proceeding.
