FORECLOSING A MORTGAGE IN THE NETHERLANDS ANTILLES
Local practice may differ from island to island
Some believe that the mortgagee should always procure auction proceeds of at least 70% of the appraised free market value and that the mortgagee may never accept a bid below such amount. The question is, however, whether such a minimum bid prize is required? The answer is no. There is no authority, statutory or otherwise, for setting such minimum price.
Another question is whether foreclosure should take place on the island where the real estate is located. The answer to this question is of importance since foreclosure auctions should be held in accordance with ‘local practice’. Based on the interpretation of analogous Dutch law, it held that local practice is the practice of the place of the auction, not the place of the real estate. Local practice in Bonaire could in fact be different from local practice in Curaçao. Auctions can be held at one island within the Netherlands Antilles while the real estate involved is located at another such island. The law does not require an auction to be held at the island where the property is located.
Karel Frielink
Attorney (lawyer) / Partner
