Purchases of mortgage loans in judicial phase
Expert assistance with your national driver’s licence for Spain
Investing in unpaid mortgages in Spain can be a highly profitable opportunity, but it requires a precise understanding of the legal framework governing mortgage enforcement and judicial auctions. Purchasing a mortgage credit does not automatically mean acquiring the property. Ownership can only occur after a judicial foreclosure process and a court-supervised auction.
At Pellicer & Heredia, we provide specialised legal assistance to investors who wish to acquire mortgage credit rights in Spain, guiding them through every stage of the legal and judicial process.
Do you need legal advice before investing in unpaid mortgage loans in Spain?
Our legal team reviews the mortgage credit and the related legal proceedings, carries out a thorough due diligence, and advises you on the risks and opportunities of the investment
Legal analysis of risks and contractual clauses
Type of mortgage and its enforceability
Whether foreclosure proceedings have already started
Possibility of withdrawal of disputed credit
Existence of early maturity clauses
Presence of abusive clauses in the contract
Whether the property is the debtor’s primary residence
Accrued ordinary and default interest
Court costs and legal expenses
Key legal and financial factors investors must analyse
Before acquiring a mortgage credit, it is essential to evaluate multiple legal and financial aspects that may significantly affect the outcome of the investment. Among the most important elements to analyse are:
70% threshold of the auction value under Spanish law
Amount of the debt being claimed
Default interest that may be accepted by the court
Purchase price of the mortgage credit
Possible abusive clauses within the mortgage contract
Current judicial phase of the foreclosure proceedings
Estimated legal costs and court expenses
Potential eviction of occupants of the property
Actual value of the property to be auctioned
Official auction value established in the mortgage
Possible scenarios following the purchase of the credit
Award of the property at judicial auction
Recovery of the debt through enforcement
Negotiation with the debtor, such as payment in kind
Specialized legal advice for investors in defaulted mortgages
The purchase of defaulted mortgages is a specialized investment niche that requires expert legal advice. At Pellicer & Heredia, we help national and international investors with: