According to Clause 5, Clause 7, Article 323 of the 2015 Civil Code, banks (mentory parties) have the right to request customers (mentory parties) or third parties holding mortgaged assets to hand over those assets to them for handling when customers do not fulfill or do not fulfill their obligations.
One of the main methods of handling mortgaged assets is to auction assets according to the provisions of Point a, Clause 1, Article 303 of the 2015 Civil Code.
According to Article 306 of the 2015 Civil Code, banks and customers have the right to negotiate the price of secured assets (land) or valuation through an asset valuation organization when handling secured assets. In case there is no agreement, the property will be valued through an asset valuation organization.
Thus, in case of mortgaging a piece of land at a bank without being able to repay the debt, the bank has the right to auction the mortgaged property to recover the loan debt in accordance with the provisions of law.
In addition, the land owner can negotiate with the bank to revaluate that land plot. The valuation will be agreed upon by both parties on the price of the mortgaged land or the valuation through an asset valuation organization, but must still be consistent with the market price.
