Foreclosures in North Rhine-Westphalia are increasing by leaps and bounds: What's behind it?

Foreclosures in North Rhine-Westphalia are increasing by leaps and bounds: What's behind it?

In North Rhine-Westphalia, foreclosures of real estate have increased sharply in recent years. Loud House and land The number of foreclosures rose by 25.4% last year to a total of 6,726 applications. This development indicates increasing financial difficulties for owners, which are often related to the current economic and interest rate situation.

Current statistics for 2023 show a continued increase with 5,020 foreclosures, although the numbers are still below levels from a decade ago. In 2014, for example, 12,557 foreclosures were registered in North Rhine-Westphalia. From that peak, the number fell to a low of 4,701 in 2022. The sharp increase could also be due to more difficult financing conditions and rising building interest rates since 2022.

Variety of properties affected

Foreclosures are not just limited to single-family homes and condos. How Justice NRW reported, both undeveloped and developed land as well as commercial properties can be affected. In addition, garages and shops are also part of the auction process.

These auctions usually take place as part of a foreclosure process, often at the request of banks in the event of arrears. Compulsory auctions may also be necessary to dissolve communities, such as communities of heirs. The auction process begins with the call and identification of the object and the participants present.

Auction process

The detailed process of an auction appointment includes several steps: First, the required property certificates and the auction conditions are announced. The lowest bid and possible existing rights are determined. There is a minimum bidding time of half an hour for submitting bids.

After the auction, the awarding of the contract will be negotiated. This award decision can either be announced immediately or decided at a separate meeting. When the contract is announced, the first buyer automatically becomes the owner and all rights and obligations of the owner are transferred to him.

The numerous foreclosures in North Rhine-Westphalia reflect not only the fight for real estate, but also the current economic challenges that many owners are facing. The constantly growing number of auctions requires both buyers and sellers to deal with the complex conditions and processes of these procedures.