Literature Review Of Literature Review On Mortgage Auctions

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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 price. In Amidu and Agboola 's research (2009), the deviation between the auction price formed and the reserve price is known as "auction premium" ie percentage of auction price and reserve price, then divided by reserve price. The higher the auction premium, the greater the acceptance of the auction results to be achieved. Factors affecting "auction premium" are significantly the number of bidders and locations. Empirically this study also shows that property types and bidder characteristics may also affect "auction premium" (Amidu and Agboola, 2009).
A higher number of bidders or bids will increase competition among bidders, thus increasing the auction price premiums of the auction object. It is stated in the auction theory that the

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