Number of Foreclosed Bulgarian Properties Skyrockets

Business » PROPERTIES | March 10, 2011, Thursday // 13:12
Number of Bulgarian Foreclosed Properties Skyrockets: Number of Foreclosed Bulgarian Properties Skyrockets An average of 1 500 auctions for foreclosed properties are now announced in Bulgaria every month. File photo

The auctions for the sale of foreclosed properties in Bulgaria, listed by private law enforcement officers, have increased twice compared to 2010.

Compared to 3 years ago, the increase is 300%, according to data from the Chamber of the Private Law Enforcement Officers and the specialized site targ.bg.

An average of 700 to 800 auctions a month have been announced in 2010; now they reach 1 500 – 1 600, while in 2008, there have been 40-50 such auctions a month, according to sources of the Bulgarian daily Dnevnik.

The main reason is attributed to the economic crisis and the increase of the number of default mortgages, reaching 16% at the end of January, data from the Central Bank, BNB, shows. Another reason is the backlog of old auctions, which failed to end with a sale.

The attractive price is the main factor contributing to a quick sale. If, however, the price is lower than the mortgage amount granted by the banks, the latter prefer to purchase the properties themselves and then resell them using the traditional sales methods.

Data from the Chamber of the Private Law Enforcement Officers shows that banks have acquired in 2010 about 10% of the foreclosed properties in Sofia, which is still a low share compared to the staggering number of default mortgages.

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Tags: auctions, foreclosed properties, banks, default mortgages, BNB, Chamber of the Private Law Enforcement Officers, private law enforcement officers

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