Core Insights - The low price tag of foreclosed properties attracts many buyers, but the average dispute rate has exceeded 30% in recent years, with most buyers falling into traps due to insufficient risk awareness [1][5] Group 1: Key Issues - Ownership Risks: Some properties have unresolved mortgages or lack consent from co-owners, leading to transaction issues during transfer [1] - Hidden Debts: Buyers may inherit significant unpaid fees for property management, utilities, and heating, potentially amounting to tens of thousands [1] - Occupancy Challenges: Approximately 40% of foreclosed properties face issues such as long-term leases or refusal of original owners to vacate, complicating the buyer's situation [1] - Property Quality: Some properties may suffer from long-term vacancy or intentional damage, resulting in structural issues that can lead to high repair costs if not inspected beforehand [1] Group 2: Risk Mitigation Steps - Ownership Verification: Check property registration for mortgages, seizures, and co-ownership to confirm no disputes [3] - Debt Assessment: Contact property management and utility companies to obtain payment records from the past 3-5 years to estimate potential debts [3] - Occupancy Investigation: Conduct at least three site visits to assess living conditions and inquire with neighbors about long-term leases [3] - Quality Inspection: Hire a professional inspector to evaluate the property's structure and utilities to avoid acquiring problematic properties [3] - Cost Calculation: In addition to the auction price, consider taxes, clearing fees, and repair costs, ensuring the total cost is at least 10% lower than market value for a favorable deal [3] Group 3: Professional Assistance - Seek Assistance: Choose reputable auction agencies that collaborate with courts and avoid relying on verbal promises from intermediaries regarding transfers and clearances, ensuring all services are documented in written agreements [6]

Core Viewpoint - The purchase of judicial auction properties is a combination of judicial procedures and market transactions, requiring careful navigation of official channels to mitigate potential risks [1][8]. Group 1: Platforms and Channels - The "People's Court Litigation Asset Network" is the core platform for judicial auction properties, covering over 95% of properties across 31 provinces, providing essential information such as auction announcements and evaluation reports [1]. - Provincial high court websites and government-designated platforms are directly connected to the court system, ensuring transparency in the auction process, with new regulations in 2023 mandating the disclosure of land nature and leasing conditions [3]. Group 2: Bidding Process - Participants must register on the platform, complete real-name verification, and pay a deposit of 5%-20% of the starting price to participate in the auction, which follows an ascending price model [3]. - Successful bidders must pay the remaining balance within a specified timeframe, typically through bank transfer to a court-designated account, and must handle the transfer of ownership at the real estate registration center [5]. Group 3: Due Diligence and Risks - It is crucial to conduct thorough due diligence, including verifying property status and potential liabilities, as judicial auction properties are sold "as-is," meaning buyers must address any existing issues such as unpaid fees or tenant occupancy [5][6]. - Special attention is required for properties with complex ownership, such as those owned by bankrupt companies, which may involve intricate debt disputes [6]. Group 4: Financial Considerations - Buyers should be aware of the tax implications associated with purchasing judicial auction properties, including transaction taxes and potential double transfer fees if the original owner has not completed property registration [5]. - The cost-effectiveness of judicial auction properties is not inherent but achieved through rigorous information screening and risk management [8].