Job description: Confiscated property buyer
Some people find ways to make a profit even in times of crisis. The latest property scam in Bulgaria involves reselling confiscated properties.
These businessmen buy properties at a discount from the courts and resell at market prices, which are up to 2 times higher than the court’s evaluation. Private bailiffs told Frognews.bg about scams, which are part of everyday life. Brokers involved in confiscating and selling properties told us about the latest trend – “confiscated property monopolists”. Mainly private bailiffs are involved in the scam. “We are approached by someone with a lot of money in cash, who asks us when we plan to hold an auction for a certain confiscated property. We tell him and he bids. He has learned what the highest bid will be in advance,” we are told. Regular bidders are usually unaware of what they’re up against – two or three people working in combination with the bailiff, who has told very few people about the auction. Most bailiffs are corrupt. We often end up selling a 1-bedroom apartment in Lozenets (a luxury neighborhood in Sofia) for 40 000 euro, while its market price is 60-65 000. The monopolists we speak of and the bailiffs form a monopoly in this segment make a fortune thanks to owners who lose their properties over unpaid bills or bankruptcy. There is actually a law that makes this procedure legal via loopholes. Bidders with higher offers go home empty-handed because the monopolists have hiked the price up fictively. In reality they have signed sale contracts weeks earlier for a lower price. The profit comes to 13-14 000 leva a month. Judges declined to comment the issue, saying only, “…since there is a law, what is wrong with it?” We are wondering the same thing.
Text source: frognews.bg
Image souce: google.bg
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Presentation of Mirela Real Estate