Purchase bankrupt property through electronic auctions. How to buy real estate through bankruptcy auctions

In the process of bankruptcy of individuals and legal entities, their property is sometimes sold. This is done by law in order to obtain funds to pay off existing debts. Bankruptcy auctions are organized:

• according to the provisions of Law No. 127-FZ of October 26, 2002;
• exclusively in electronic form;
• at special sites that have received a certificate.

Anyone can take part in the process of selling the property of bankrupt persons. You just need to fulfill the conditions under which the sale takes place. They are quite strict and require some material costs. Let's look at how bankruptcy auctions take place. Why was the official state bankruptcy website created? What prospects for participation in the process do citizens and legal entities have?

Fundamental points of legislation

The paragraphs of the above law provide rules for bankruptcy of legal entities and ordinary people. We talked about the main features of the bankruptcy procedure. This process is divided into several stages. One of the steps to formally prove insolvency is to obtain funds by selling the property.

Note: This is an optional step. Some trials do not reach him, ending:

• debt restructuring;
• conclusion of a settlement agreement.

If it was not possible to reach an agreement or the case appears in the case, then the property has to be put up for auction. The sale of property is initiated by the arbitration manager. This person provides the organizer with all the information (and is legally responsible for its accuracy).

Platforms are engaged in the process of organizing the sale of debtors’ property.

They are required to do the following:

• open;
• accessible to everyone;
• free;
• legal.

Attention: in addition, the responsibilities of the organizers include receiving money for property and real estate. And there are some sales rules associated with this.

Subtleties of the procedure

Bankruptcy auctions on the EFRSB website are conducted in accordance with a strict procedure. It is divided into several stages:

• The announcement of tenders consists of providing the arbitration managers with all the required information regarding the object. Afterwards, an advertisement is submitted that can be seen by all interested parties.
• Information about the property to be sold is compiled in the following format:
  • Name;
  • location address;
  • tax information (if necessary);
  • initial cost;
  • planned price reduction (in increments of dates and amount of contribution for the lot).
• According to the form of the procedure, there are:
  • closed;
  • open;
  • public.
• After the final stage, the results are summed up and the winner is announced.
• A purchase and sale agreement is drawn up with the winner, on the basis of which the person receives ownership rights and the seller receives money.

The auction center is an electronic platform for conducting auctions. On August 22, he announced the liquidation of Stroymontazh LLC (Moscow).

1. Information provided:
   1. about the location of the object;
   2. its brief description;
   3. about the details of the debtor, methods and terms of depositing funds.
2. Installed:
   1. starting price of the lot is 975,000 rubles;
   2. auction step 10%;
   3. terms of concluding a deal with the winner;
   4. start and end dates of the period:
      1. submitting applications;
      2. holding auctions.

At the end of the process (usually within a month), the Auction Center will announce:

• about the winner;
• about the completion of the procedure.

Rules for participants

The legislation defines one boundary parameter for participation in tenders - the legal capacity of a citizen. The procedure is open to legal and. Applicants undergo a registration and verification process.

It consists of several stages:

• Obtaining a digital signature, without which it is impossible to take part in the procedure. This document is issued on a paid basis. The price depends on the manufacturer. Moreover, the digital signature is valid for one year.

Hint: you need to order an electronic signature based on the site where electronic trading in relation to the bankruptcy case is planned. Not all digital signatures are accepted by certain services.

• Site accreditation. To conduct it, you must upload electronic copies of documents certifying the right to participate in the auction. They are certified by digital signature. For example, it is enough for citizens to send a passport and TIN.
• Documents are verified within three to five days. After its completion, a notification about the received accreditation on the site appears in your personal account (you should remember that there are several of them on the service).
• Lot selection. At this stage, proposals are studied. You need to look at the announcements about the sale of auctions that have already been scheduled.
• Filling out an application. In order to declare participation in the drawing, you must create an electronic document. The form appears after clicking the “Request” button. Some data in it is generated automatically based on the documentation provided. Others will have to be entered manually. And the main thing is to determine the offer price.
• Payment of a deposit. An application is not possible without providing the first copy of the payment document for transfer to the account of the manager of the deposit (5% of the cost of the lot).

Hint: the deposit will be returned to losing participants. Money is not refundable to the winner who refuses the lot.

Going through the procedure

Bidders, having decided on the object, put forward their proposals. With a closed procedure, no one sees competitors’ initiatives to buy out the lot. They are opened after the deadline for accepting applications. The winner is the one who bids the highest price.

Open auctions are conducted somewhat differently. Applications are visible to everyone. Each applicant for a lot is assigned a number. It is impossible to identify a person from it. Thus, each participant sees only the amounts offered by competitors for the lot. Naturally, this information allows you to adjust the amount of your own initiative.

Public offers are a different procedure. During the event, competitors may raise rates. As a rule, a time step for accepting proposals is assigned. The winner is the one who made the last (highest) bid.

Help: sometimes the price of a lot drops by 99%. That is, you can buy an object for 1% of its primary cost.

The end of the auction is different for the losers and the winner. Persons who did not receive the lot must wait for the deposit amounts to be returned. This happens within a few days after the winner is announced.

Hint: if the funds have not been credited to your account, you need to contact the manager. His contact information is on the lot card.

The winner will have to do additional work to complete the purchase.

It consists of the following:

• First, the purchase and sale agreement is concluded electronically. A document arrives in your personal account and requires an electronic signature.
• After this, time is allotted for the transfer of funds.
• At the same time, the original contract with the seller’s signature is sent to the winner. It must be certified and sent back.
• The received copy of the agreement is used to re-register ownership (or receive a lot that is not subject to government registration).

Hint: Some types of property are not sold at public auction. For example, weapons are not subject to public sale (they require a special permit).

Why participate in auctions

The sites sell property not only of legal entities, but also of bankrupt individuals. And this opens up the opportunity to acquire what is necessary for life. Borrowers who have failed to meet their obligations are forced to deal with these problems. A huge list of property is offered as lots. The most popular are:

• residential and industrial premises;
• land plots and lease rights;
• rights of claim (usually the most expensive lots);
• tools and household appliances;
• enterprises and securities;
• objects of art;
• real estate of various types;
• production lines and more.

Attention: as a rule, even the starting price of a lot is lower than the market value of the property.

Thus, participation in auctions allows you to purchase the necessary objects at a lower cost. The EFRSB portal differs from others in that it informs potential participants in advance about the lots and the opening date of trading.

Consequently, the potential bidder gets the opportunity to price the offer and complete all formalities in advance so as not to be late for the start of registration of proposals. In addition, not all lots face serious competition. And this allows you to reduce the price. Although, you have to fight for the possession of especially valuable assets. The cost of lots is completely different and depends on the type of property. On the site you can find industrial equipment for 800 rubles. and the right to claim 20 million rubles. The choice depends on the experience and capabilities of the buyer.

April 5, 2018

Greetings! Today the topic of “super profitable business at auctions” is being actively promoted on the Internet. And no wonder. Indeed, since 2014, the number of bankruptcies in Russia has been growing at an alarming rate. Banks, giant companies, small private individuals and individuals are increasingly unable to pay off their debts. The property of bankrupts is put up at special auctions at a reduced price.

Today I will talk about how to buy real estate at bankruptcy auctions. I will give step-by-step instructions and, of course, describe the pros, cons and pitfalls.

A bankruptcy auction (including real estate auctions) is an electronic bidding system. The main task of such an auction is to quickly sell the property of a bankrupt (physical or legal). The proceeds from the sale are used to repay the debt to the creditor.

Conditional example. Victor took out a mortgage for an apartment at Alfa-Bank for 5 million rubles. Having paid 2 million to the bank, the borrower suddenly lost his source of income. The bank put his apartment, mortgaged to the bank, up for auction. The lot was sold for 4 million rubles. The bank recovered the balance of the debt of 3 million (plus penalties, fines and accrued interest). The rest of the money went to Victor.

Let's face it, this is an extremely unfavorable deal for the borrower. But we managed to “amicably” part with the bank and close the mortgage.

I will not describe in detail the bankruptcy procedure for a legal entity or individual. I’ll start from the moment when the bankrupt’s property is already put up for sale. At this stage, buyer-investors come into play.

Bidding at bankruptcy auctions is carried out in three stages:

1. Primary trading for an increase. Initially, the property is offered at the “around market” price. During trading, its price increases step by step. If there are no willing buyers, the lot goes to the next auction.
2. Repeated bidding. The price decreases by 10-20%, and the second round of upward trading starts. If the winner could not be determined again, the object goes to the “third round”.
3. Public bidding. This is the most interesting stage for the investor. According to the terms of public auctions for the sale of real estate, the object is put up for auction in increments of decreasing value.

What property can be purchased at a bankruptcy auction?

1. Collateral (most often, for mortgage loans with a large arrears).
2. Property seized for debts (for example, alimony).
3. Assets that are being sold due to the bankruptcy of an individual or company (residential apartments, land plots, street retail).

How to participate in a bankruptcy auction?

• Get an electronic digital signature.

The digital signature confirms that the information belongs to its owner. Without such a “signature” (a set of letters and numbers on a flash drive), you cannot access the electronic trading platform and take part in trading.

Important! When choosing a company to obtain an electronic signature, pay attention to what sites it provides access to. Issue price: 5-10 thousand rubles. As a rule, electronic signatures are issued for a period of one year.

• Accreditation on the electronic trading platform.

To undergo free accreditation, you just need to upload the documents required by the resource to the website (for individuals, this is a passport and Taxpayer Identification Number). The accreditation procedure takes 3-5 working days.

• Lot selection.

In addition to the lot itself, it is worth carefully studying all the documents that relate to it (appraisal reports, ownership documents). It is better to inspect the property before the auction begins. It is worth calculating the payback period of the investment in advance!

• Software setup.

To participate in electronic auctions, special programs (Crypto-pro format) and certificates are used. Instructions for working with electronic signatures are issued by the companies that produce them.

An application for participation in the auction is drawn up on standard forms. On some sites it is automatically generated from the data specified during registration. On others, you have to create an application manually each time and attach scanned copies of your passport and TIN.

Before submitting an application, the participant and the organizer sign a deposit agreement. The deposit is a guarantee that you will fulfill all the conditions of the auction (including purchasing the lot if you win).

After you have transferred the deposit to the current account, you need to “show” the organizer the payment order with the bank’s mark (original). The deadline for submitting a payment order is the last day for accepting applications for participation in the auction.

• Participation in an electronic auction.

During the bidding process, participants see only the participant’s number and the price he offered (the full name or company name is hidden until the results are announced).

The bidding step is specified in the auction conditions (from 0.5% to 5% of the initial value of the property). You can submit your price proposal within a time period (it is also indicated in the conditions).

• Trading results.

Within half an hour after the end of the auction, the organizer creates a protocol on the progress of the auction. And then, within three days, another protocol is prepared: on summing up the results. The second protocol contains information about the winner.

• End of the auction.

For participants who are not winners, the auction ends with them receiving their deposit back (within a few days).

But for the winner, everything is just beginning. He must sign the purchase and sale agreement. If for some reason the winner changes his mind about redeeming his “prize,” the deposit will not be returned to him.

• Payment for the lot and taking ownership.

After signing the contract, the winner pays the remaining amount for the purchased lot. Note! Often the details for making a deposit and paying the remaining amount do not match! After full payment and signing of the purchase and sale agreement, the winning bidder becomes the full owner of the property.

How is the winner determined?

On June 22, 2015, serious amendments were made to Law No. 127-FZ. Without going into legal details, the winner is now the one who offered the highest price. Let me remind you that previously the auction was won by the one who submitted the application first. And it was possible to win the auction only with the help of automatic systems (robots).

The bankruptcy trustee has five days to offer the purchase and sale agreement to the winner. If five days have passed since the proposal was received, and the winner does not respond, then the manager is obliged to offer the contract to the participant who submitted the next lowest bid. In this case, the deposit will not be returned to winner No. 1.

A couple more important points:

1. If during the auction only one application for participation was submitted, the manager declares the auction invalid. He may offer the contract to a single participant or “not count” the tender at all.
2. If, after determining the winner, violations on his part were revealed (for example, the participant did not provide all the necessary documents), he will not receive his “prize”.

Where can I find information about bidding?

• Russian auction house.

RAD is the first auction platform for the sale of private and state property throughout Russia. The main founders: Sberbank, the Russian Jeweler company and the Russian Guild of Managers and Developers.

• Fulfillment Center. One of the largest Russian platforms.
• Sberbank AST.

Among the advantages, I would like to note a convenient and intuitive interface. The disadvantage of the site is the limited selection of objects for purchase. At the Sberbank auction, the assets of Sberbank borrowers are sold.

• Fabrikant.ru. One of the best Russian sites with a large number of lots.

Additionally, you can use the database of confiscated property. Such aggregator sites contain offers for all confiscated property that is put up for auction (for example, customs confiscation). Example: website https://konfiskator.com/.

Strategies for making money trading bankruptcy

"For myself"

The participant scans the entire auction market and selects items in good condition. Compares the purchase price at auction and the current price on the market. Buys real estate and resells the defaulted asset at a profit for himself.

Sometimes the “for yourself” strategy does not bring profit, but loss. For example, if the participant did not have enough experience. Or he miscalculated the risks.

"For client"

You have previously found a client who is ready to buy an apartment, warehouse or retail pavilion. The amount of income depends on how large the discount of the lot at the auction is. The client will not buy the property from you if its price is close to the market price!

"For the investor"

The auction participant finds investors who know about the benefits of the auction, but do not want to personally participate in the auction. The strategy assumes that you find an object for it, prepare all the documents and submit an application through an agency agreement.

Your return is a percentage of the investor's profit (the difference between the purchase price at auction and the sale price on the open market).

Pitfalls of bankruptcy auctions

You need to spend a lot of time and effort

98% of the time will be spent searching for a liquid lot. This is boring and monotonous work for people with angelic patience and perseverance. You will have to spend a little more on collecting information on the lot, analyzing the market, studying documents and making a decision on participating in the auction.

The transaction itself takes approximately 0.5% of all effort and time. And most investors “merge” much earlier.

Lots are not offered at auctions for “10% of the market value”

Truly “tasty” objects are swept away in the very first seconds of a public offering. And if the object “survived” until the last stages of the auction and is worth mere pennies, there is definitely something wrong with it. For example, minors are registered in the apartment or the land plot is located in a remote province.

Liquid real estate is sold at auction at prices close to market prices!

And one moment. In practice, very interesting lots with good discounts are available to few people. The “chosen ones” create entire teams and companies, through which they purchase lots before the public offering.

What laws govern bankruptcy auctions?

Basic Law: Federal Law-127 “On Insolvency (Bankruptcy)”. The law establishes standards for holding auctions for the sale of the debtor's property.

On October 1, 2015, certain provisions of the Law on Bankruptcy of Citizens (No. 154-FZ) came into force. It is otherwise called the “Law on Bankruptcy of Individuals”. From the moment of its adoption, not only a legal entity, but also an individual and individual entrepreneur can be declared bankrupt in Russia.

This means that the property of a “physical” bankrupt can now also be put up for electronic auction. Including real estate: apartment, house, dacha, garage, land plot. Moreover, even a single home can be sold at a bankruptcy auction (if it is issued with a mortgage).

Where to start learning trading?

There are three ways to learn how to bid at bankruptcy auctions.

1. Studying specialized forums. The method is free, but time-consuming. It is more suitable not for beginners, but for participants with minimal trading experience.
2. Training video course. In such courses, the entire trading technology is described step by step: from simple to complex. Lots of examples, practice and real cases. The downside is the huge number of “fake” experts on the market who promise “mountains of gold” and earnings “from 5,000,000 per month.” You need to understand that participation in bankruptcy auctions is painstaking and complex work. But it’s not “easy money”.
3. Video tutorials on Youtube. Lessons in this format are published, for example, by the Bankruptcy Trading Academy.

Pros of auctions

1. Affordable price of real estate sold at auction. For example, “mortgage” apartments can often be purchased 20-30% below their market value.
2. The actions of bankruptcy trustees are regulated by state bodies. The situation of “double sale” or refusal of the debtor to transfer the apartment to the auction winner is excluded.
3. In any case, the object must be sold: at the first, second or third auction. In the absence of demand, the price may fall two to three times from the starting value.

Disadvantages of auctions

1. There is always a possibility that the property put up for auction does not comply with the tender documentation. Ideally, the property should be inspected before the auction begins.
2. Participants are not always able to check the object “inside and out” (there are no separate documents or the manager delays sending them until the last minute).
3. Participating in bankruptcy auctions requires knowledge and experience.

Conclusion

At bankruptcy auctions, it is indeed possible to buy liquid real estate at a price 20-40% lower than the market average. But such “diamonds” rarely reach public auction. Good apartments and houses are not sold at auctions “for pennies” or “fly away” from auctions at the speed of sound.

Buying at bankruptcy auctions is a labor-intensive activity, not passive income. You'll have to learn the "materiel part". Process gigabytes of information. “Sifting through” tons of “garbage”.

But despite all the “buts,” I personally know a couple of people who have made the purchase and sale of property at bankruptcy auctions their main (and very profitable) business.

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They are electronic auctions, the purpose of which is to quickly sell the debtor’s property in order to at least partially repay the debt.

Today they have become quite popular, and if you are not bankrupt, then you can make good money from such trades.

Some experts say that there is an opportunity to purchase expensive property (real estate, cars, luxury goods) at prices up to 1% of market prices.

As a rule, property acquired through bankruptcy auctions is subsequently resold at prices that are also significantly lower than market prices.

But, as in any other business, a professional approach is needed here that will not allow you to lose your money.

The value of the property being sold is assessed by the arbitration (bankruptcy) manager. He also organizes auctions and deals with property sales.

Its main goal is to reduce the price to a minimum in order to leave the debtor with his debt.

Such auctions are always held in electronic format, which is enshrined in Russian legislation. And anyone has the right to take part in them.

Legislative basis for bankruptcy auctions

In accordance with Federal Law of the Russian Federation No. 127, electronic auctions are held with the aim of quickly selling the debtor’s property for partial or full repayment of the debt.

In particular, attention should be paid to Articles 110, 111, 112 and 139, which list the rules for the sale of the debtor's enterprise, real estate and other property. This will help you, the buyer, evaluate whether the bidding is legally sound.

The modern world is conducive to the fact that the number of bankrupts will only increase, since this is sometimes the only way out for hopeless debtors.

On the one hand, the debtor himself may have some benefit if he carries out some completely legal frauds, and on the other hand, buyers who acquire truly valuable property for pennies.

If you are going to become a participant in a bankruptcy auction, you should remember that this activity, like any other, is associated with risks. For buyers, these are, first of all, financial risks, since fraud is thriving in this area.

Where do bankruptcy auctions take place?

Electronic bankruptcy auctions are held on special platforms in electronic format. On the Internet you can almost immediately find the most popular sites, such as the “Russian Auction House”, the electronic platform “Auctions of Siberia”, the electronic platform “Auction Tender Center” and many others.

If you plan to take part in the auction yourself, then it is best for you to register on several sites in order to track the maximum number of lots.

Among them there may be interesting specimens that carry potential profit.

According to modern data, platforms for holding bankruptcy auctions in Russia are among the most popular in the world, and they continue to gain popularity as one of the fastest ways to earn a large sum.

At the same time, you can take part in trading directly from your computer. There is no need to travel to other cities and possibly return with nothing.

When choosing a site, you should rely on its rating and popularity. Such systems have the maximum degree of protection against fraudulent schemes and have greater software support.

How the auction works

You register in the system, after which you receive an electronic signature that will confirm your identity. Next, various lots are offered to your attention, among which you need to choose the most profitable one for you.

When you have chosen a lot and decided to participate in the auction, you submit an application. The data is quickly processed, after which 20% of the purchase price is withdrawn from your account to the account of the auction organizer.

If you win the auction, the remaining 80% is automatically transferred to the account of the auction organizer, and partial ownership of the purchased property is transferred to you.

After this, it is necessary to supplement the legal component of the transaction in the form of purchase and sale documents (similar to or). This is where you will need your electronic signature.

When bidding begins, the property is listed at market price. Each new bid from a participant increases the price of the lot.

If no one wants to purchase the property at the market price, and this happens almost everywhere, the price of the lot is reduced to 70% of the previous one, and the lot is put up for auction again.

This algorithm is valid until the property is purchased by one of the bidders. As a rule, price reduction occurs at intervals of 3-4 days.

But there are cases when this happens within 24 hours.

Determination of the winner

At all auctions, the winner has long been considered the one who offered the maximum price for the lot. In the modern world, this principle has mostly been preserved, however, there are some modifications that a person who is just starting his journey in this business should be aware of.

If at the specified time of the auction several participants offered different prices for the lot, then the winner is the one who offered the highest price.

However, there are times when the same price is offered. In this case, the winner is the bidder who submitted the bid earlier than others.

In the case where the bidder has no competitors, he is considered the winner, regardless of the price he offered.

This system for determining the winner is supported by the modern judicial system and has a legislative basis in the Federal Law of the Russian Federation “On Insolvency (Bankruptcy)” Art. 139.

A small gap in the legislation that auction organizers successfully take advantage of is the indefinite timing of auctions.

Accordingly, the auction manager may terminate bidding immediately after the first bid is submitted. In this case, the participant who made this application will be considered the winner.

What can you buy?

At bankruptcy auctions you can purchase real estate, cars, luxury items, businesses and factories, interior items and anything that can be confiscated for sale.

Of course, when participating in electronic bidding, you will not be able to independently examine the item for damage or other defects that could reduce its value.

So there is some element of risk here. It may also happen that the property offered at auction has some financial obligations.

It can be logical to assume that a debtor who is simply unable to pay off the debt on his own has not made all the necessary payments on the property.

Therefore, you can expect an arbitrarily large amount. It’s worth getting used to the idea that about 2-3% of unpaid taxes hang on real estate, and you will have to pay them if you purchase it.

The same applies to enterprises, factories, cars and other property subject to taxes. For this reason, business at bankruptcy auctions is considered one of the riskiest.

Where to begin

First you need to register on the electronic trading platform. However, the matter does not end there and you need to obtain an electronic signature that will confirm your identity.

Purchasing from bankruptcy auctions will be available to you when you go through all the stages of registration and confirmation of your identity.

This is necessary to ensure the security of trading and quick identification of the buyer himself.

Now you can make purchases from bankruptcy auctions, however, you should not rush. First, you need to study the entire legislative basis for bankruptcy trading, as well as get to know this business by observing the trading of successful people.

It would also be useful to learn this business, which you will have to invest in.
You will be taught how to make money at bankruptcy auctions in special seminars and webinars, as well as in courses that are increasingly taught by experienced specialists in this field.

Don’t forget about the golden rule of any business: “First it’s in your head, and then in your wallet.” Familiarize yourself with all the possibilities of electronic trading platforms, try to do everything “on paper”, and only then start participating in real trading.

Choosing the right trading platform

First, should you choose a property to purchase that is close to your home? There are advantages and disadvantages here.

Advantages:

• You can pick up your property almost immediately and assess its condition. This increases your efficiency and work intensity;
• You don't have to make a long journey that will waste your energy;
• It will be much more convenient for you to manage your property if you rent it out, resell it, or use it for your own purposes;
• You can take care of your property rights yourself, without entrusting this to third parties or trust companies who require their own fees for services.

The only, but very big drawback is a strong narrowing of your circle of attention. You will pay attention to a smaller number of lots, and accordingly, the likelihood of finding a suitable one is significantly reduced.

A good solution for your business in case of purchasing property that is located far from your home would be to contact a trust company that can handle all property issues. The service is not free and each company offers its own prices.

After the victory

If you win the auction, then, as mentioned above, you transfer the entire required amount to the auction organizer.

After this, you must execute the purchase and sale agreement in paper format in two copies, signed with your own hand, and send it by mail to the address of the auction manager.

Be carefull! If you do not meet the deadline within five working days, the auction manager has the right to refuse to conclude an agreement with you. In this case, the deposited 20% of the auction value of the property is not returned to you, and the purchase and sale agreement is concluded with the participant who took second place in the auction. Another risk factor in this difficult business.

At first, it is best for you to enlist the support of a professional in this business or an experienced lawyer who can quickly draw up all the necessary documents in accordance with modern rules and laws. Believe me, your investment will pay off handsomely in this case.

FAQ

1. Age restrictions. Persons over the age of 18 can participate in bankruptcy auctions. Or persons over the age of 14 with strict confirmation of all transactions by his parents or guardians. With the permission of the guardianship and trusteeship authorities, parents and guardians are allowed to participate for persons under 14 years of age on its recommendations.
2. Contact the auction manager. As a rule, all contact information for the auction organizer is located on the page where the item you have chosen is located. Based on these data, communication is supposed to be carried out.
3. How to buy at bankruptcy auctions? The purchases themselves are made using electronic trading platforms. As a rule, their interface is intuitive for an experienced PC user.
4. What do you need to be admitted to bankruptcy auctions? First, registration on the electronic trading platform. Secondly, an electronic signature confirming your identity in all transactions. Thirdly, there are cases when it is necessary to confirm your identity using scans of documents (for example, a passport, which should not be). Therefore, it is best to always have them on hand, just in case.
5. How to get an electronic signature? You must contact the certification center and receive it in person. To do this, you will need documents confirming your identity. Different companies that create electronic signatures provide different terms and conditions for their use. Try to choose one that suits your requirements rather than acting at random.

Summary

Bankruptcy auctions today are a good opportunity to purchase property at reduced prices.

By participating in this business, you can earn good money, but the risks are also quite high. You may be faced with liens on your property, as well as damaged or unusable properties.

As with any business, buying property from bankruptcy auctions is quite risky and requires training.

Carefully study all the intricacies of this matter, the pitfalls, enlist the support of a professional, and only then start trading for real. This is the key to your success.

Bankruptcy Auctions! How to buy there?

All about bankruptcy auctions - What? Where? When?

According to the Federal Law “On Insolvency”, the final stage of the bankruptcy procedure is an auction. It is carried out in cases where other options for repaying debts to creditors have not led to full repayment of claims. The auction has a compulsory procedure and the bankrupt does not have the right to refuse this procedure.

During the sale of property of bankrupts and debtors, the movable and immovable property of the bankrupt is sold, as a result of which the buyer receives full right to dispose of the acquired property.

The sale of property is the final stage of declaring an individual or legal entity insolvent. If, after the sale of all the debtor’s property, all creditors’ claims cannot be satisfied in full, then they will be considered repaid.

The sale of property of bankrupts and debtors is also called bankruptcy proceedings. This stage of bankruptcy is initiated in the case when the debtor did not fulfill the restructuring plan, or the amount received from him was insufficient to repay the entire volume of debts.

Insolvency auction

The initiative to hold an auction can come from both the debtor and the arbitration manager. Moreover, in the latter case, the bankrupt’s consent will not be required. To start bankruptcy proceedings, you must obtain a court decision. The arbitration court itself may also decide to hold a tender if it considers the debt repayment plan ineffective in accordance with the restructuring schedule or cancels the reorganization and external rehabilitation procedure.

Also, bankruptcy proceedings for the purpose of selling the bankrupt’s property can be initiated by a meeting of creditors, at which it was decided not to propose a restructuring plan, but to immediately proceed to an auction. The bankruptcy trustee also proceeds to sell the debtor’s property in case of violation of the terms of the settlement agreement.

There are two main forms of property sales: bidding and auctions. During the auction, the person who was able to offer the highest price for the property wins. During the bidding, the person who offers the optimal conditions wins.

In 2011, amendments were made to the legislation that oblige organizers to conduct a bankruptcy auction electronically.

All things that belonged to the debtor as property at the time he was declared bankrupt may be included in the sale of the debtor's property. Also included in the realizable estate is property purchased after the arbitration decision on bankruptcy.

The most popular types of property that can often be found at auctions are: securities (shares and bonds of companies), industrial complexes, equipment, vehicles, land plots, trademarks, accounts receivable, commercial and residential real estate, special equipment.

Legal entities risk parting only with the property that belonged to the company. While individual entrepreneurs and individuals risk their personal property.

In particular, an apartment and other real estate, a car, luxury items, jewelry and expensive household appliances, etc. are subject to forced confiscation and further sale.

At the same time, property not worth more than 10,000 rubles, the debtor’s only home (unless it is pledged as collateral for a mortgage loan), personal items (clothing, hygiene products), food, pets and livestock, gasoline, kitchen utensils, etc. stove and utensils. They cannot confiscate money from a bankrupt within the regional subsistence level.

It is worth noting that the bankruptcy trustee can challenge transactions involving the gratuitous transfer of the debtor’s property in favor of relatives and third parties. They can be canceled and the property returned to the bankruptcy estate for sale at auction. For example, if over the last year the debtor has drawn up a deed of gift for an apartment in his mother’s name, then the transaction is more likely to be invalidated.

When selling collateral, the funds are initially used to satisfy the claims of the creditor, who acts as the mortgagor, and then distributed among everyone else.

Affects the bankruptcy auction and joint property of spouses. In this case, exactly half of the value received at the auction must be transferred to the spouse, and the second half is distributed among the creditors.

Organizer of bankruptcy auctions

A bankruptcy trustee or a specialized company can act as organizers of bankruptcy auctions.

The responsibilities of the organizer include the following:

• organize a formal offer for the sale of property at auction;
• enter into an agreement with the electronic auction platform;
• publish information about the auction in official sources;
• advise potential participants in the sale of property during bankruptcy;
• accept applications;
• conduct an independent assessment of the bankrupt’s property;
• determine the winner, draw up official documents on the progress of the insolvency bidding.

The question of who will organize the auction is decided by the arbitration manager.

Auction procedure

The entire bidding procedure can be divided into five key stages:

1. An inventory of all property and its independent market valuation is carried out; a list of things that cannot be sold at auction by law is compiled.
2. The manager submits the list and value of the debtor's property to arbitration with a request to hold a tender.
3. If consent is received from the court, all property is transferred to the organizer. He is obliged to hold the auction no later than in 2 months.
4. An open auction is held, which can last up to six months. If during the specified period it was not possible to sell the property, it is transferred back to the bankrupt.
5. The proceeds from the sale of the debtor's property are sent to remunerate the organizer, manager and creditors in order of priority.

After going through all stages of the auction, it is considered that the bankrupt has fully fulfilled his monetary obligations to creditors and owes nothing more.

Sale of bankrupt property

The sale of the debtor's property is carried out in three stages. Initially, it is put up for auction at market value (which was determined during its initial assessment). The organizer also determines the auction step (this is the minimum amount of increase in the price of the property that a bidder can offer). At this stage, trading is going up.

If during the first stage of the sale of bankrupt property there are no winners, then the organizer announces a second round of bidding. Now the initial price of the lot is reduced from 10% to 30% relative to the market price. Applications from participants are also accepted for promotion.

The final stage of the auction of the insolvent debtor's property is public. It is this property that is most interesting to investors who purchase property for the purpose of its subsequent resale and profit. A distinctive feature of this stage: the property is sold in decreasing increments.

Even if such an extreme measure does not help, the initial price of the lot drops by 5-10% weekly. This is where you can buy valuable things at ridiculous prices with a discount of up to 90% of their market value. But usually liquid property rarely reaches the public stage and is sold at the average market price.

Previously, at the third stage, the speed of submission of applications by participants played a priority role. This has given rise to a large number of special robotic programs for participation in electronic trading.

But according to current conditions, the organizers have the right to independently select the winners of the auction, guided by their own criteria.

Recognition of the auction as invalid

The law provides for some situations that allow the auction to be declared invalid. In particular, the following criteria are indicated:

• only one application was submitted for participation in the auction or there were no applications at all;
• only one participant was allowed to participate in the auction, or no one was allowed;
• Only one participant came directly to the auction;
• none of the participants submitted an offer that met the conditions of the auction, or expressed a desire to buy the auction item after the initial price was announced.

The decision that the auction was declared invalid is announced the next day after it is held.

Within 10 days after such a decision, it must be published in writing on the same resource on which the publication about the auction was previously published. The organizer can also immediately announce new auctions, but they are held at least 10 working days after the previous ones.

The auction is considered invalid if the winning bidder does not pay the cost of the won lot within the established time frame.

How to participate in a bankruptcy auction?

Any adult individual or legal entity who has a special digital signature can participate in the auction. You can obtain a signature at certified centers. An electronic signature for participation in a bankruptcy auction today costs about 6,000 rubles. and is valid for one year. After the certificate expires, the digital signature must be re-received.

When the signature is received, you need to register on the selected electronic platforms and pay the established subscription fee (if required). Next, you need to select a suitable auction for the sale of property of persons undergoing insolvency proceedings (by region, value, type of property and other criteria) and submit an application for participation.

Typically, participation in an auction requires the payment of a certain deposit, which serves as confirmation of the seriousness of the parties’ intentions (usually its amount is up to 20% of the lot price).

In case of victory, the participant transfers the balance in favor of the manager and a purchase and sale transaction is concluded.

Trading platforms

Electronic bankruptcy auctions are conducted through specialized trading platforms. There are several of them in Russia, there is no single center. The largest platforms include the Unified Federal Register of Bankruptcy Information, the platform of the largest bank - Sberbank, Fabrikant.ru, the Russian Auction House, the Sales Center, and the ELECTORO TORGI portal. This is where those wishing to purchase the debtor's property need to register.

When searching for a lot, you can also use aggregator services that do not conduct auctions themselves, but contain a complete list of upcoming auctions.

So, after calculating all the options, you have come to the conclusion that the most profitable and safest way to preserve and increase your capital is to invest in real estate.

Every year, demand in the real estate market is growing, and even amid the crisis, people are taking out loans and investing millions in purchasing apartments in order to protect themselves from inflation and create passive rental income for themselves by the time they retire.

At the same time, almost none of them have any idea how to buy apartments for the price of cars without mortgage slavery...

The obvious benefits of buying real estate at bankruptcy auctions are that you immediately become a full owner of the property with a discount of 50%-70% from the market value and at the same time:

• You do not need to go through all the paperwork to get a loan approved by the bank and prove your solvency;
• You do not overpay mortgage interest, the total amount of which can be compared to the price of a car;
• You are not afraid of eviction and loss of property in the event of a conflict with the bank.

Even to conduct a regular purchase and sale transaction, you need to have basic knowledge, and buying an apartment at auction also has its own subtleties, which you will learn about from this article faster than your coffee has time to cool down.

What apartments are being sold at auction?

Hundreds of new housing offers from bankrupt owners throughout the country appear daily on dozens of electronic trading platforms.

Among the owners of real estate: individuals, individual entrepreneurs, organizations of various forms of ownership, municipal property is also put up for auction.

The interesting thing is that you will find both apartments in new buildings and on the secondary market for sale, and there are really interesting offers...

For example, while searching for lots for partners and for training our students, an Academy employee found an elite apartment in Pskov with an area of ​​205 square meters at auction. m, which dropped in price from 8.5 to 1.7 million rubles, For more information about this, watch our video:

How does the price of apartments drop at bankruptcy auctions?

Having followed the further fate of this apartment, we found out that in the end it was bought for 4.4 million rubles, that is, 2 times below market value.

Real estate that is sold on electronic trading platforms can be divided into three categories:

1. Collateral property.

These are apartments purchased with a mortgage loan that was not subsequently repaid. In this case, the bank takes the apartment and sells it at a reduced price in order to return its funds as quickly as possible.

Before applying for a mortgage, the bank carefully checks the “legal purity” of the apartment, so, most likely, you will not have any other problems; your only concern is the procedure for removing the collateral.

As a result of a competent analysis of all the circumstances and parameters of the collateral before purchasing an apartment, it may turn out that the situation is completely solvable.

2. Seized property for debts.

A lien is also a type of encumbrance imposed on an apartment as a result of legal proceedings or confiscation of property for debts.

3. Property without encumbrances, which is sold due to the bankruptcy of a company or individual.

During the bankruptcy of a company or individual, previously owned apartments, which were intended, for example, for temporary accommodation of company employees, are sold along with other assets.

Such bankrupt residential real estate is much more attractive to buyers because it is less likely to have various nuances than mortgaged or seized property. Therefore, if you decide to buy bankrupt property at auction, be prepared for the appearance of other contenders for this lot.

However, competition only scares away beginners.

Based on the experience of participating in tenders, some competitors are eliminated due to errors when submitting an application or incorrect execution of documents. You can beat the rest by promptly offering a purchase price that will outbid other bids and still be profitable for you.

Calculating the purchase price is a topic for discussion for more than one minute... You will understand the basic principles of how it is formed and where apartments are auctioned with a discount of up to 70% by reading the description of the stages of the auction.

3 stages of selling real estate at auction

Apartments, like other property of bankrupts, are sold at auction in three stages.

1. During the first stage of bidding The initial price of the lot is determined, the price is set slightly below the market price, and buyers place bets on the price increase.

At this stage, about 60% of the total number of lots is sold. Savings from buying an apartment at the first stage can be 10-15%, which is not bad, but this is just the beginning...

In the event that the first stage of the auction was unsuccessful and the property was not purchased, the second stage begins.

2. Procedure for repeat bidding similar to the first one, but the starting price of the lot is reduced by 10-20% of the initial cost.

You can buy a bankrupt apartment during the second stage of bidding with more tangible benefits, approximately 30% cheaper than the market value of the property. However, the third stage of trading is the most attractive for investment.

3. During a public offering you can buy real estate at auction for 2-3 times cheaper than its market value.

The procedure for the third stage differs from the first two: the price of the lot goes down, not up, and during the bidding the value of the lot gradually decreases.

It is clear that a real estate auction rarely reaches the lowest price, which is 1% of the initial cost.

However, even if you buy in the middle of a public auction, you you win up to 50-70% in the cost of the apartment, and no seller or real estate agency will offer you such discounts! By the way, I told you how to quickly find an apartment at a public auction in a separate video...

How to find an apartment at public auction?

If you want to see real examples of purchasing residential real estate and learn how to find apartments and other bankrupt property at auction in your city, come to a free master class to get a step-by-step plan for purchasing properties at auction...

3 proven sources for finding an apartment at a price 2-3 times cheaper than the market

Current offers and all the necessary information about lots can be found using 3 main types of information sources:

• Electronic trading platforms- sites specializing in online trading in accordance with the Law “On Insolvency (Bankruptcy)”. The largest sites: Fabrikant (www.fabrikant.ru), Sberbank - AST (www.sberbank-ast.ru), B2B-Center (b2b-center.ru) and others.
• Official information sources- Internet portal “Unified Federal Register of Bankruptcy Information” (bankrot.fedresurs.ru), as well as the website and Saturday edition of the newspaper “Komersant” (kommersant.ru/daily).
• Aggregators- sites that collect all available and currently relevant information regarding bankruptcy trading from many different resources and trading platforms. For example, the Tbankrot platform: tbankrot.ru.

All information about the auction is publicly available, and it is more than enough to find properties that suit you in your city or region.

This way you will see with your own eyes the property you want to purchase, as well as possible nuances that are not mentioned in the description of the lot, and understand whether the apartment suits your purchasing goals.

Let's imagine that you have found an apartment in your city, and how to buy it?

To submit an application at the auction you will need a personal electronic digital signature (EDS). Learn more about what it is, how and where to get it,

With it, you will register and undergo accreditation on the trading platform where the auction of the object you are interested in is taking place, by submitting the appropriate request. You will then be able to participate in the bidding and submit applications.

When submitting an application, you must make a deposit, which is 10-20% of the initial cost of the lot during the bidding period.

Don't worry, if you don't win the bid, the deposit amount will be returned to you within 5 working days. If your bid is successful, you will need to pay the remaining price minus the deposit amount to purchase the property.

After winning the auction, within 3 days you enter into a purchase and sale agreement with the auction organizer. Payment for the apartment at the auction must be made within the next 30 days from the date of conclusion of the contract.

If payment is not received within the specified period, the auction will be declared invalid, and in this case the deposit remains with the seller (the auction organizer).

3 ways to buy an apartment at a bankruptcy auction:

The whole truth about the risks of buying residential real estate at auction in simple language

What could go wrong?	How to avoid this?
In the heat of the excitement of hunting for a lot, you will indicate too high a price, and the apartment at auction will turn out to be unprofitable for you.	Familiarize yourself with the market value of real estate in the area where the lot is being sold and set your minimum and maximum purchase price limits.
The auction organizer is not obligated to show the property to auction participants, so you will not always be able to get inside before purchasing and see the property with your own eyes.	Collect and study all possible information and photographs in the lot description, and also try to come to the site yourself and see as much as you can.
The seller may not have the entire package of documents; there may be errors in indicating the living space or describing the general condition of the apartment.	Take the certificates yourself or call the necessary organizations and personally double-check the information specified in the property description.
Unseen circumstances: A) the property purchased at auction has encumbrances that you have to remove; B) a minor child is registered in the apartment, an incapacitated citizen or the previous owners will refuse to move out, and you will not be able to quickly sell the apartment as planned.	Before purchasing, consult with a lawyer to realistically assess the situation and understand your next steps.
Losing bidders or previous owners of real estate may apply to arbitration or court to review the results of the auction.	This is rather an exception to the rule, but keep this possibility in mind and make sure that you are making a “clean” transaction from the legal side.

To quickly and profitably purchase residential real estate at auction, use these practical expert tips

• With a budget of 200-400 thousand rubles, it is better to look for properties in small remote cities and towns, where for that amount you can buy a room or a small family.
• Realistically assess the state of the market and your budget: real estate at auction in a good area of ​​the city and well-equipped apartments with good repairs are bought already at the stage of a price drop of 15-20%.
• The cost of an apartment with encumbrances at a bankruptcy auction can fall by 60-70% of the initial cost. However, keep in mind that until the encumbrances are removed, you will be limited in the possibility of further resale and other real estate transactions.
• You can buy a share in real estate, like an apartment with an encumbrance, at more than half the price, and in the future you can buy the remaining share from the co-owner or sell your part to him. In any case, you will benefit.

How did my student sell his dorm room?

In general, when buying an apartment at auction, the same rules apply as when conducting any other real estate transactions, and difficulties arise only due to the inattention of buyers and ignorance features of participation in tenders.

There are many examples of how beginners, who have read several articles, enter into transactions without thorough analysis and preparation, and as a result lose hundreds of thousands of rubles due to trivial mistakes, which our students learn about in the first days of their training...

Our goal is to teach you how to win highly liquid real estate without special experience or legal education.

And if you are also inspired by the prospect of buying an apartment for rental income or for yourself, then take the next step - fill out the form below and receive a free book from which you will learn 5 steps to purchase any objects at auction with minimal investment and without any risks!