Purchases of mortgage loans in judicial phase

First of all, we must explain that buying an unpaid mortgage is NOT buying the mortgaged asset. This will only happen after an auction and through adjudication by the Court after a judicial resolution, but for this you will have to be present in the judicial proceedings with a Lawyer and Court Attorney.

The purchase of these credit rights may result in you being awarded the property at auction, but for this you will have to discuss with your lawyer the following concepts, how they differ and how you can use them under articles 670 and 671 of the L.E.C..:

• Actual value of the asset to be auctioned
• Auction Value
• 70% of Auction Value
• Debt claimed
• Default interest that the court will allow you to collect
• Price of the unpaid mortgage assignment
• Abusive clauses
• Judicial phase of the legal proceedings
• Court costs
• Release of the occupant of the property
• Etc… 

What are the services that Pellicer & Heredia Abogados provides to our investor clients before a purchase of mortgage credit rights?

First, we will represent you by carrying out a due diligence of the legal proceedings once we know the purchase value of the mortgage loan. In this way, we will be able to analyze the possible procedural scenarios, as well as estimated timescales due to the workload of the Spanish Courts, as well as a further analysis of the possible procedural deadlines.

If you are interested in the asset, we will assist you during the whole judicial process, as well as on the day of the auction in order to be able to bid in order to be awarded the real estate asset if you are interested in it.

If the real estate asset is not of interest, we will represent you so that you can recover the amount resulting from the mortgage loan rights resulting from the corresponding legal proceedings once a public auction has been held. In this case, our firm will analyze the existing contingencies to obtain an economic analysis of the amounts to be claimed, ordinary and default interest, as well as legal costs.

Another possible scenario would be to negotiate with the asset holder a possible donation in payment in exchange for debt forgiveness. It is important to carry out an analysis of the resulting amounts in order to assess this possible outcome and to have specialists in the field.

The business of buying unpaid mortgages is an exclusive niche for investors who have appointed lawyers and solicitors who are experts in the field and able to represent them. They will analyze the type of existing mortgage, whether foreclosure has been initiated, whether there is the possibility of the withdrawal of the disputed credit, the existence of the early maturity clause, whether the interest or any other clause is abusive, whether the mortgage is for a habitual residence, the possible abusive clauses, the principal amount owed, the ordinary and default interest accrued, the amount of the legal costs, as well as all your doubts in this regard in relation to the possible scenarios.

At Pellicer & Heredia we can represent you in all these possible scenarios within the foreclosure proceedings, as well as if the occupant of the property needs to be evicted..