Banks start foreclosures: a thousand properties auctioned off in January

Banks are looking to sell over a thousand homes, apartments and plots in the first month of this year, as well as foreclosed retail and industrial spaces as a result of owners defaulting on their loans.

The number of foreclosed goods has risen exponentially in the past year, with most ads being run month after month because of a lack of buyers, with new properties repossessed from bad payers being added to the list.

Banca Transilvania publishes the most ads of foreclosed properties on its website, which also features some of the auctions organised at the end of last year. Their number exceeds 350, around 180 of which target houses and apartments, and 130 target plots.

BRD displays 326 ads for homes, plots and retail spaces. For instance, the bank wants to sell a home in Bucharest’s District 1 for 1.4 million RON (around 330,000 euros).

Banks have repossessed several plots, homes and even plants valued at over one million RON, with the latter being, however, the hardest to sell considering that real estate transactions are all but frozen. Enforcement officers say a foreclosed property sells after three to five auctions on average.