Mortgage Equation

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LITERATURE REVIEW
The mortgage auctions is an auction conducted by a creditor who has the right to sell the collateral of a debtor who defaults through a public auction and retrieve the proceeds as a settlement of his receivables (Law No. 4 of 1996). This auction is led by the auctioneer at the State Auction Office (KPKNL). The auctioneer offers the goods to the bidders starting from the reserve price of the goods, and then he led the bidder 's bargain until getting the highest price. In the real property mortgage auctions, the reserve price shall be determined by the bank (creditor). Then the highest bidder is set by the auctioneer as the Auction Winner
Auction price premiums is a deviation between the auction price formed and the reserve …show more content…

Azasu (2006) also explains that an important conclusion from previous studies is that good or bad auctions depend on how to attract bidders and how to avoid collusion among bidders. The auction conditions in Sweden are vulnerable to collusion and the occurrence of "bidding barriers" by a bidder against another potential bidder. One solution to the auction problem is the method of auction online or e-auction. Bapna, Goes, and Gupta (2000), in his research discussed the online property auction process, compared to the traditional property auction process, which occurred in the United States. The results conclude that online auction process shows different characteristics with traditional auction process as a result of heterogeneity (a diversity) of auction participants and fluidity (keep flowing) goods auctioned. That online auctions will result in cost-effectiveness and efficiency, as well as greater revenue from the auction process in …show more content…

The results conclude that (1) the state of the market (SOM) - when the non-economic depressed state, (2) the high degree of credibility of the auctioning houses, (3) the large number of bidders (4) high levels of pressure from creditors to sell a property (distress sale of properties), (5) location of auctioned property (proximity to urban center area), and (6) type (form) of property, especially condominiums or apartments, have a positive effect on auction results (success or failure of auction) a private residential real

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