City of Hof fights junk real estate: The focus is on three hovels!

City of Hof fights junk real estate: The focus is on three hovels!

At a current city council meeting in Hof, CSU city councilor Matthias Singer drew attention to three problematic junk properties. This happened in the context of the discussion about “Petit Paris”, another topic that moved the city. The discussions show that the city administration has already taken measures to secure the sidewalks around these hovels after they were initially inadequately cordoned off. The impression that the city administration only acts more quickly under public pressure has increased, which many citizens find inadequate.

The issue surrounding junk properties is not just a local issue, but also of national interest. According to a bill passed by the Bundestag, the aim is to curb abuse in the foreclosure auctions of such properties. The Legal Affairs Committee approved this proposal, supported by the coalition factions SPD, Alliance 90/The Greens and FDP. The CDU/CSU, AfD and the left-wing faction abstained from the vote. The aim of the law is to give municipalities more latitude to handle problematic auctions, especially when high bids are made that are never paid. This could represent a turning point in dealing with junk properties, which are often used as objects of speculation.

The risks of junk properties

Junk properties are considered properties with significant structural defects that have not been repaired for a long time. Buyers often participate in foreclosure auctions with the intention of purchasing the property at auction without actually intending to pay the bid. In such cases it is common for bids to be made above market value. After the auction, only the required security deposit is usually paid in order to formally become the owner.

Another problem arises when these bidders rent out the properties. This not only leads to overcrowding, but often also to further neglect of the buildings, as the owners have no interest in proper maintenance. The cycle of abusive auctions is self-perpetuating and contributes to the erosion of living quality in the affected districts.

Political measures against abuse

The planned Junk Real Estate Abuse Prevention Act is intended to enable municipalities to apply for judicial administration in the foreclosure auction process, even if they do not act as creditors. This is intended to better manage these problem properties until payments are actually made. Dr. Marco Buschmann, Federal Minister of Justice, has emphasized that the law is intended to help prevent abuse and promote responsible ownership relationships.

However, Bodo Pfalzgraf, state chairman of the German Police Union, has expressed concerns, particularly regarding anti-money laundering. He points out that investigations often fail to detect crimes and criminal activities, which makes it difficult to combat this problem.

The issue of junk real estate is therefore a hotspot that not only affects the local housing market, but also raises social and legal questions. The upcoming legal reforms could be a ray of hope, but it remains to be seen how effectively these measures can be implemented in practice. Local authorities are faced with the challenge of making the right decisions in a difficult environment in order to ensure the quality of living and keep the city worth living in.