A unit of 'Apartment Hyundai' has gone up for auction due to an inability to bear a debt exceeding 6.9 billion won. The homeowner filed for a rehabilitation procedure in court to prevent the transfer of ownership through the auction, temporarily halting the auction process.
According to data from the auction and public sale company Gigi Auction on the 22nd, a unit of Apartment Hyundai 4th district in Apgujeong-dong, Gangnam-gu, Seoul, was put on the auction market in October last year. The total amount of the homeowner's debt aggregates to 6.978 billion won, with the lent amount from the lending company reaching 5.475 billion won.
The appraisal price of Apartment Hyundai is 4.75 billion won, and it was scheduled to be auctioned on the 19th. With redevelopment in the Apgujeong area ongoing and the location being evaluated as the best in the area, there is a high likelihood that the winning bid will exceed 100% of the appraisal price.
The redevelopment complexes in Apgujeong are currently designated as a land transaction permission zone, meaning that when selling dwellings, there is a requirement for actual residence. However, auction properties can quickly find tenants for jeonse (long-term lease). There is also no obligation to submit a funding plan. Moreover, if the homeowner is a union member, the transfer of union member status is possible. In principle, the transfer of union member status is not possible in redevelopment projects within speculative overheating districts after the establishment of the union, but auctions and public sales due to public and financial institution debt defaults allow for the transfer of union member status.
However, the auction process has been halted after the debtor filed for rehabilitation or bankruptcy with the court. If the court does not accept the rehabilitation or bankruptcy application, the auction process is expected to resume.