[Direct answer]In the Beijing area, in online judicial auctions, the starting price is generally not less than 70% of the appraised value or market price. After the auction fails, it can be auctioned again, and the starting price of the next auction will be reduced by no more than 20% of the previous starting price. Real estate can be auctioned two to three times, and if it still fails to be sold, it will enter the sale process and be disposed of at the starting price of the second auction. For bidders, the price reduction after the auction failure is a window for low-price entry; for creditors, the price reduction will erode the recovery, and they can consider using the property to offset the debt or accepting the sale price.

I. Problem background and typical scenarios

No one raised their bidding paddles at the first auction. The debtors hope that the price will drop as low as possible, while the creditors are worried that the price will keep going down. The bidders are waiting to pick up bargains—the price-reduction mechanism after the failed auction affects the interests of all three parties. How the rules will proceed and how all parties will respond to them offer more room for negotiation than expected.

II. Key points of contention

First, the rules regarding the extent of the price reduction and the number of retakes. Second, the timing of the transition to debt repayment through property seizure after a failed auction. Third, the pricing and participation in the sale process. Fourth, the strategic choices of all parties in the price reduction chain.

III. Professional analysis by Henglue Law Firm

The first layer, the rule framework: According to the Supreme People's Court's regulations on several issues concerning online judicial auctions of people's courts, the starting price shall not be lower than 70% of the appraisal price or market price; if the auction fails within 30 days after the first auction, the starting price of the next auction shall not be more than 20% lower than the starting price of the first auction; if the real estate fails to be sold at the second auction, it can be auctioned again or directly sold, and the selling price shall be based on the starting price of the second auction - after completing the price reduction chain, the price will be at most 40% lower than the first auction. The second layer, the creditor's strategy: The price reduction chain is unfavorable for recovery, and the initiative actually lies in the hands of creditors - after each failed auction, they can apply to use the failed auction price to offset the debt with the property, locking in the price to stop the decline; if they really need cash repayment, they need to balance the appraisal price reduction and the disposal cycle; in a multi-bidder competition pattern, they should persist in multiple auctions, and in an oligopoly market, early debt repayment and early loss prevention are essential. The third layer, the bidder's strategy: The mainstream strategy is to wait and see in the first auction and seize the opportunity in the second auction, with the largest price reduction occurring in the second auction; pay attention to the sale procedure - the sale period lasts for 60 days and the transaction is completed at a fixed price, so when there is less competition, it is actually a good opportunity; for Beijing's foreclosed properties, it is necessary to confirm the purchase and loan policies in advance, and it is meaningless to wait and see without practical qualifications and funding plans. The fourth layer, the debtor's perspective: In theory, the price reduction chain is unfavorable to debtors, but it is more harmful to delay the disposal of the property unsuccessfully at a high starting price in the first auction; a reasonable strategy is to cooperate in providing property clues and true market price references to facilitate the quick transaction and reduce the rolling of interest and fees; for the obviously underestimated appraisal price, timely apply for appraisal objections and re-appraisal - the price objection channel in the auction process is a statutory right that all parties can use. One step further, if the sale still fails and the creditor is unwilling to offset the debt, the court can lift the seizure - the property will be exposed to the risk of transfer again, and the creditor should apply for continued seizure control or initiate a cancellation right lawsuit to monitor the asset's whereabouts before the seizure is lifted; for bidders, the lifting of the seizure means that the subject may enter the private transaction market, and there is still a window of opportunity. The end of the price reduction chain is not the end, and all parties should lay their cards in advance at the two final nodes of sale and seizure lifting, and the specific design of the implementation strategy can be combined with the above analysis.Special servicesThe case evaluation of the plate.

IV. Practical suggestions and legal basis

The first step is to track the starting price and the price reduction points of the auction announcement; the second step is for creditors to evaluate the trade-off between debt settlement and re-auction at the failed auction point; the third step is for bidders to set the bidding limit according to the price reduction rhythm; and the fourth step is to raise written objections to the evaluation price in a timely manner. The main legal basis: Articles 10, 26 to 28 of the "Regulations of the Supreme People's Court on Several Issues Concerning Online Judicial Auctions by People's Courts"; relevant provisions of the "Regulations of the Supreme People's Court on Auction and Sale of Property in Civil Enforcement by People's Courts"; and the specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

Three sentences on failed auctions: The price drop in the second auction should not exceed 20%; if the chain of ownership is completed, the auction will proceed to the sale stage; creditors can lock in the price by offsetting debts, and bidders can pick up bargains in the second auction; if there are price objections, there is a channel for appeal, and if the valuation is inaccurate, it can be reassessed. For matters involving judicial auctions, you can consult through the following channels:Creditor's rights and debts, and enforcementThe service provides a comprehensive solution, involving the combination of real estate bidding and transfer of ownershipProperty sales and construction projectsPlate, reference for difficult casesSpecial servicesColumn.

VI. Frequently Asked Questions

Q1: Is there a limit to the number of failed auctions?

In online auctions, real estate can generally be sold after two failed auctions, and the sale shall be carried out in accordance with the rules; if the sale fails and the creditor is unwilling to accept the debt as repayment, the seizure can be lifted.

Q2: Is it necessary to reduce the price of the second batch of houses by at least 20%?

No, the reduction rate shall not exceed 20% as the upper limit. The court may reduce it less or not reduce it at all; the reduction rate shall be determined by the court in light of the market conditions.

Q3: Which auction price should be used to determine the price for settling the debt?

The applicant for enforcement may choose to accept the debt repayment at the auction price. The debt repayment price shall be the starting price or the auction price of the auction, and the specific price shall be subject to the court's ruling.

Q4: Can I place a bid during the auction period?

The auction will be conducted at the announced price. If a buyer is willing to purchase the item at the auction price, the transaction will be completed on a first-come, first-served basis. The auction period is generally 60 days.

Q5: Is there any remedy for malicious price-cutting and bid-rigging?

If there is collusion and price suppression, you can apply for the auction to be declared invalid and hold a new auction. Pay attention to the bidding records and the bidders' affiliations, and report any abnormalities promptly.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit.\nLegal services for creditor-debtor disputes·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.