Not everything in our lives, unfortunately, are subject to control. Even when, apparently, all counted, there may be circumstances that simply will unsettle and leave you with nothing.
Such situations are not uncommon in the financial and property issues when, for example, does the loan secured by the property, and in view of the circumstances fails to deal with the debt.
Taken the property much faster
This story happened with Nikolai Fedotov, who being a stand-up businessman of an average hand, took a large loan, securing his apartment. At first all went as planned: the received loan was sufficient infusion into the business, the business began to generate income, the loan is repaid, and no reason for anxiety about the inherent “goodness” was not. However, the case of Nicholas I. was shaken, when on the horizon appeared a business competitor with a more sophisticated business model. He quickly began to remove the cream, and the firm Fedotov also quickly began to sink. This entailed a failure to repay the loan, and through time and loss of property in favor of the financial institution. Aggravated the situation as the fact that “busted” the Bank that issued the credit, and soon Fedotov saw that the Deposit guarantee Fund of individuals (fgvfl) put the loan portfolio on sale and began searching for new owners for the assets of the liquidated Bank.
And started selling loans to individuals according to the Dutch model. If the English model of auctions, the participants are gradually increasing the bids, the auctions may not happen a lot so – to exhibit up to 8 times (always lower prices) and only one implementation to last for months, the Dutch model works differently.
“Dutch auctions work with a price reduction. After the announcement of the starting price by the customer every 5 minutes there is a decrease in prices by 1% (possibly up to 80% of the declared value). The first who clicks the “Buy” button fixes the price. Next is the reception closed bets on the price increase from the other participants. Then reveals the stakes, and the final bid can be done by the participant who initially stopped the decline in the price of the lot – explains the essence of trading Dmitry Kasyanenko, managing partner of the Legal company “Kasyanenko and partners”. – In this case, a step increase is not related to the size of the originally identified steps, so that other participants do not always have the ability to predict the increase in the cost of the lot, and hence the auction as a whole. Thus, the chance of foreclosure of the asset by the debtor, who used the services of a professional company member (the borrower or the guarantors shall not have the right to redeem the debt), reduced.”
That is, according to Dmitry Kasyanenko, in just 5-6 hours the original borrower risks losing their property (because no one knows how to dispose of the financial portfolio of the new owner) or find a new lender.
Is there a way out from the debtor?
To avoid such a deplorable outcome, in LF “Kasyanenko and partners” advise, if possible, to bring the situation to a Dutch auction. But if the loan portfolio, together with collateral still for sale by the Deposit guarantee Fund will need to determine the model behavior and to develop a strategy. It is best to appeal the actions of the guarantee Fund and the Bank and to defend the rights of property, enlisting the support of experienced professionals. The latter, as a rule, know the answers to four key questions: how to cancel auction on sale of the assets as to cancel the results of the Dutch auction as to prevent the renewal of the pledge after a Dutch auction and how to keep the property in the procedure of the Dutch auction?
The complaint in this case filed with the Commission a Fund to ensure deposits and liquidator of the Bank by the participant of the open bidding (auction), the owner of the property, borrower, guarantor, person, registered or residing in the mortgage apartment, who believes that his rights may be violated. However, as noted by experts, if, after consideration of the complaint by the Commission, in its meeting refused, experienced lawyers sent the case to court, where the outcome of a case can be made the decision to cancel the Dutch auction.
“The debtor has every chance to reduce the debt burden of the overdue loan and save the property from foreclosure at the Dutch auction. We with confidence because over the shoulders of our lawyers hundreds of successful appeals, – says Dmitry Kasyanenko. – There are many legitimate ways of blocking the process of selling the loan portfolio on the Dutch auction. But in order to understand which of them fit better in each situation, you need experience and a thorough knowledge of all the nuances. In addition, these methods of blocking the sale process of the loan portfolio must meet applicable laws and be duly completed, otherwise it will be rejected by the Commission complaints under the DGF, and the courts.”
“Fight” with the auction will help experienced professionals
Not all law firms are ready to take on such cases and few have the necessary knowledge and experience to bring the case to a successful conclusion.
According to experts of law firm “Kasyanenko and partners”, cancellation of decisions possible to achieve due to the presence of technical problems, incorrect display information about the item in the passport, it is not in conformity with the real situation or violation of the terms of the current legislation. But there are still “trumps”, which “shoot” most often.
“The main reasons for cancellation of results of Dutch auction, based on the experience of conducting such cases, I can highlight a few – lists Dmitry Kasyanenko. – The winner is the financial guarantor; the property has encumbrance (a judgment is forbidden to alienate the children); the Bank had no right of ownership on lot/absence of documents of title; the Difference between the most “generous” offer to the winner and subsequent less than 1 bid increment; And it happens that the Commission takes a decision on cancellation of results, even if the appellant did not ask for, due to the fact that the contract is not signed by the parties within the prescribed period”.
In summary, LF “Kasyanenko and partners” are still advised not to bring the situation with the loans that have moved into the category of problem, to the Dutch auction.
“Debts to pay, definitely need, so if you see that things are not going well and the loan turns into a noose, try to find a qualified professional who will be able to resolve for you, this question is most beneficial. If your loan portfolio with collateral property still for sale by the Deposit guarantee Fund, don’t lose your temper and start to act immediately. Consult with an experienced specialized lawyer who will be able to bring your business to the bitter end, prepare all the necessary documents, and boldly defend their rights to property, filed a complaint against the actions of the guarantee Fund and the Bank”, – concluded Dmitry Kasyanenko.
Managing partner of Law company
“Kasyanenko and partners”
01034, Kyiv, Volodymyrska str., 40/2, office 24
+38 (067) 239-93-88, +38 (044) 209-50-69