– Expected auction of residential properties and land in the nation.
Expect a rise in foreclosures of properties, as predicted by the Homeowners Association in Rhineland-Palatinate, due to rising interest rates. Ralf Schönfeld, the association’s spokesman, shared this information with the German Press Agency in Mainz. At the time, loans for home financing were very affordable due to low interest rates. But that time is over, and property owners are now struggling with high payments for new or renewed financing, possibly leading to foreclosures.
Foreclosures are a strategy for creditors to get their investment back. This usually happens when property owners are having financial problems, are unable to make mortgage payments, or are in debt. The creditor then initiates the foreclosure process in the local court. The reserve price of the property is based on an appraiser’s valuation.
According to the Ministry of Justice, about 239 properties were auctioned off through foreclosures in Rhineland-Palatinate in the first half of 2024. In the whole of the previous year there were 467 approvals, and the year before that there were 490. In 2021 a total of 476 foreclosures took place, as reported in response to a parliamentary inquiry by the Free Voters in Mainz.
The homeowners association in Rhineland-Palatinate expects an increase in foreclosures, as mentioned in a report by the German Press Agency in Mainz. Creditors often resort to foreclosures when property owners are in financial difficulties, as the Ministry of Justice explains.
