What happens when your house is being sold at auction?
If your house is sold at auction and the proceeds from the sale are enough to entirely cover your debt, you “lose” your house but you are not a debtor anymore. On the contrary, if the proceeds were not enough to satisfy 100% of the claims, you would lose your house and still remain a debtor for what is left of your debt, running the risk of being hit by another foreclosure proceeding or by a salary-backed loan (Loans against one-fifth of salary) or by the seizure of movables, current accounts, cars, motorbikes etc.
Example 1: your debt is € 100.000,00 – your house is sold at auction for € 40.000,00
What happens next?
Your debt is not extinguished and the creditor starts new debt collection procedures that may concern:
a) Other real estate properties belonging to the debtor (mortgagor) and/or to guarantors
b) Salaries, TFR, current accounts etc. belonging to the debtor (mortgagor) and/or to guarantors
c) Cars, motorcars, furniture etc. belonging to the debtor (mortgagor) and/or to guarantors