Seizure by bailiff of 'underwater' home

Questioner

Can a bailiff seize a house that is so-called underwater and of which it is known in advance that the creditors will not receive any proceeds. This concerns a house for which a provisional purchase contract has been concluded and where a considerable residual debt remains after the sale.

Lawyer

Yes, the property may be seized. The bailiff or his client cannot establish that the house is underwater. A third party can only see the amount of the mortgage registrations at the land registry and not the amount of the actual debt. In many cases, the amount of the mortgage registrations is higher than the actual debt. A buyer can protect himself against seizure after the closing of the purchase agreement by having the purchase agreement registered with the land registry. If no purchase agreement is registered, the seizing party can simply execute the property.

Questioner

Does it help to show the bailiff the provisional purchase contract so that he can determine for himself that there is a residual debt, or is the only way for the seller to have the attachment lifted through summary proceedings? As a debtor, you are disproportionately affected by such an attachment, where the creditor ultimately gains nothing and you yourself are faced with a much higher debt.

Lawyer

The bailiff only carries out an assignment for a creditor and is not the attaching party himself. You can approach that creditor with the documents that show that there is no surplus value. The notary who takes care of the transfer will also contact the creditor because the attachment must be removed before delivery to the buyer, after all, you are obliged to deliver free of mortgages and attachments. If the creditor does not cooperate, summary proceedings are often the only solution. If necessary, I can contact the creditor on your behalf. Please contact me directly if you wish to make use of this option.

Lawyer

If the execution value is lower than the mortgage, a judge will probably rule that the execution may not be continued, which is abuse of power. In this case, it is important that the debtor demonstrates that he is otherwise doing what he can to pay the debt to the seizing party.