Bulgaria Bankruptcy Auctions - cheap property?

@gwynj

Hello,

Hello,

A very interesting site.

THANKS.

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Sophie

That site is fascinating!

I saw a couple of derelict houses in my village with starting prices way over what they are worth, which surely won't sell. And yet there's a house in the nearest town where the starting price is very good indeed, even if it sells for twice that it would be a good buy!

@gwynj thank you for this website.  how can I enter the auction? Should the persons who participate in the auction be Bulgarian or it doesn't matter? or can I give a lawyer POA to participate?

@janemulberry I have noticed the same...the starting asking prices are ludicrous sometime.

Can find much better and cheaper on imto or bulgarian properties

I guess the starting price must be based on how much the bankrupt person owes. But it's counterproductive to set the price so high for some properties.

The starting price is 80% of the sale price according to a valuation report made by a certified appraiser. You can read the procedure here: https://lex.bg/bg/mobile/ldoc/2135558368 Chapter forty-three, art.485 and next.

I read the download baillif documents.

Many are for 1/3 or 1/2 the property.

@Teodora Angelova

Sure, I can get a 'certified' appraiser to sell my Picasso, any taker?

@Anastasija_gust Yes, be aware of that fact  that most of the properties are not at their wholeness, but just parts. Sometimes these are old disputes from the heirs, who cannot decide their properties and go to the bailiff to resolve their problems.

@Vasilev

Cheers, that actually explains a lot of the craziness!

Thanks, Vasilev! That explains why there are things like a 1/6 share of an apartment! But why would someone buy such a useless thing? Not to mention getting involved with family disputes as an outsider is never a good move.

Teodora, that is interesting! It seems a "valuation" and what the actual market price is can be very different.

Thanks, Vasilev! That explains why there are things like a 1/6 share of an apartment! But why would someone buy such a useless thing? Not to mention getting involved with family disputes as an outsider is never a good move.
Teodora, that is interesting! It seems a "valuation" and what the actual market price is can be very different.
-@janemulberry

Like Time Shares!!

But these family disputes are quite common over here in Europe (Austria, France, Hungary) if not careful when you think you are buying a whole house you might only be buying a fraction of one.

LOl! A complicated time share, for sure!

@gwynj It might be a bit tricky affair, indeed. Farmland can't be sold to non-EU citizens. Even to legal entities owned by non-EU owners. I tried to bid for a car last year. It's been a quest I ultimately failed. Miserably failed even to survey the asset. My lawyer said such a purchase might be the cleanest one, but you could buy something you won't be able to use. Say, a land with a building on it, or a car w/o documents. Needless to say, you can do it outside of the site, of course. Cheers!

@gwynj

Yes and as this is Bulgaria there is an officer in charge of all bailiffs.  Rumor has it that he tips off his friends in advance and then applies pressure to assure that the winning bid in provided or other shenanigans.  I was naive several years ago when I entered an auction for 40 hectares of farm land near the beach areas only to discover that it was sold to an "organization" for far less than my bid.  Alas!  Perhaps there was an error in my bid?  Since then I have perfected my bidding process.  You are correct that some smaller properties can be acquired however do a lot of homework prior to trying to tackle a prime property.  After all, in Bulgaria it is who you know that counts!

@gwynj
Yes and as this is Bulgaria there is an officer in charge of all bailiffs. Rumor has it that he tips off his friends in advance and then applies pressure to assure that the winning bid in provided or other shenanigans. I was naive several years ago when I entered an auction for 40 hectares of farm land near the beach areas only to discover that it was sold to an "organization" for far less than my bid. Alas! Perhaps there was an error in my bid? Since then I have perfected my bidding process. You are correct that some smaller properties can be acquired however do a lot of homework prior to trying to tackle a prime property. After all, in Bulgaria it is who you know that counts!
-@Johnavann

Good story. Sound like american movie 😆 🤣 

All countries are corrupt and if one reviews the International Corruption Index one will conclude by statistical summary that there has been little improvement in reducing global corruption since 2012.   As for USA it is barely in the top third of rankings and those ranking  around it are an embarrassment to be associated with. . 

Bulgaria actually came up one point over last year and few countries can claim that.   Corruption in Eastern Europe is pervasive and a way of life.   Had I been raised under this system I would accept it as a way of life like many do.   My view is that it is a tip and that it is a "Who you know and how much you will pay!" society,  yet that is exactly what America is.  So it is not just an American movie it is a commentary on what is happening globally.  Can any one person do anything about improving the system?   I think not!    Unfortunately I have nothing to offer on how to improve things.   

I will say that I am as happy as a "Pig in Mud" in Bulgaria as it is not "Politically correct!!!!"     

@gwynj  Thanks for your comment . Those links are of interest to me . I have just had a quick peek .

    All countries are corrupt and if one reviews the International Corruption Index one will conclude by statistical summary that there has been little improvement in reducing global corruption since 2012.   As for USA it is barely in the top third of rankings and those ranking  around it are an embarrassment to be associated with. . 
Bulgaria actually came up one point over last year and few countries can claim that.   Corruption in Eastern Europe is pervasive and a way of life.   Had I been raised under this system I would accept it as a way of life like many do.   My view is that it is a tip and that it is a "Who you know and how much you will pay!" society,  yet that is exactly what America is.  So it is not just an American movie it is a commentary on what is happening globally.  Can any one person do anything about improving the system?   I think not!    Unfortunately I have nothing to offer on how to improve things.   

I will say that I am as happy as a "Pig in Mud" in Bulgaria as it is not "Politically correct!!!!"     
   

    -@Johnavann

I bought a property via these auctions, I gave power of attorney to my lawyer and he bid on my behalf. It was a good buy. In another one I attended myself, I was bidding with one person and he bid too high in my opinion so I did not buy it.  These are properties which have been repossessed, there can be issues so one has to check everything. In respect of % ownership. I have seen part of the land shared but not the apartment itself. So for example an apartment block with 6 apartments, each apartment owns 1/6th of the land. There is no UK type freehold/leasehold concept in Bulgaria. I cant say I know all aspects, just my experience. As we say, Buyer Beaware, check everything. But there is always some risk no matter how you buy properties

It can work well if you know exactly what you're bidding on and bid wisely, as you clearly did.

The land an apartment block is on being equally divided between all apartment owners is normal, as far as I know.  Due to inheritance laws which divide property between all children equally, the issue can arise where one child sells or is forced by bankruptcy to sell their share. It's quite possible to find one has only purchased a part share of an actual apartment. The listing should say so if that's the case.

When I was looking for an apartment, I saw some properties listed that looked to be amazing value. Huge excitement! Till I checked and discovered what was for sale was 1/4 of a house, or 1/3 of an apartment.

Thanks for this post with comments in thread . All very interesting to me as just about to start the purchase process in Bulgaria . I have some Bulgarian friends who do not want me to get , quote them 'Ripped-off ' as they state there is a price for native Bulgarians and a Price for others . I have to open a Company to buy the land attached to any houses ,  as not an EU native .

@LoveActually

I hope it all works out well for you! Where are you planning to buy?

Certainly with renovation work, there can be the local price and the expat price. If you can, make friends with the neighbours asap. Mine have been a big help with getting better prices for work I've had on my house.  As you already have Bulgarian friends, they may be able to help you.

@Janemulberry

Hi Jane . Thanks for your reply . I have my eye on a few places to be honest , Several different areas / places with land and water wells are of interest to me . That don't need too much work to bring up to acceptable living standards . So places that already have at least some kind of an inside shower-room or something with a Summer Kitchen that has one  , that can be updated . I can do a certain amount of basic renovation work myself but am more than willing to learn more skills . Yes i have a few lovely Bulgarian friends one of which lives in Lovech and she wants to make sure I get the best deal I can get when I commit to buying .

She'll be a big help to you. 😺🙂

It must be well over 10 years since I last looked at the "bailiff auctions" site and it's amazing how the prices have skyrocketed; nonetheless there are one or two potentially interesting Sofia properties on there - definitely worth keeping an eye on, once we've finished up our current project.  All I need now is some real craftsmen instead of the usual crop of bodgers and cowboys....