Despite Borrowing to the Limit, Tears Follow as Apartments Go to Auction Due to Unpaid Loans
The number of properties going to auction due to unpaid loans is on the rise. Notably The number of properties going to auction due to unpaid loans is on the rise. Notably, the number of collective buildings, including apartments, being subjected to compulsory auctions has reached its highest in 13 years and 8 months. According to data from the Court Registration Information Plaza, there were a total of 13,631 applications for compulsory auction decisions in July. This marks a 24.1% increase compared to the previous month (10,983 applications) and a 46.1% increase compared to the same period last year (9,328 applications). A compulsory auction refers to the process where a creditor takes a property to auction if a debtor fails to repay the principal or interest on a loan secured by that property. Unlike regular court proceedings, a creditor can directly apply for an auction at the court. This typically occurs when financial institutions such as banks are the creditors. The real estat...