Auctions of seized assets are little known

Imagem: El Comercio

The Code of Civil Procedure allows reductions of up to 50% of the initial value of a property, when this is not sold in the first call to auction. This is a way to stimulate the purchase following call, and this was recognized by the judges in an interview with daily El Comercio. But this mechanism brought a serious problem: the defendant lost the asset and in addition, he still had a percentage of debt. From today, the rules change.

The General Procedures Code, which replaces the Civil Code, no longer modifies the initial valuation. That is, if an expert estimates the value of a vehicle at USD 15 000, the amount will remain the same, although there are one, two, three calls.

Before this modification, civil judges, responsible for dispatching this type of auction, detected “auction groups,” that consolidated due to the lack of access people had to information of the goods offered. These groups of five to seven people, acted mainly in the second calls when the price of the property was already at 50%.

Source: http://www.elcomercio.com/actualidad/remates-bienes-incautados-difusion.html