Specialized in Banking and Financial Law

BBS Abogados Hipoteca Multidivisa Barcelona
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Foreclosure Lawyers

Foreclosure Lawyers

A foreclosure is a procedure through which the bank can carry out an auction of the property that guarantees a mortgage loan. This procedure is urged by the bank due to the default of the debtor of the mortgage obligations.

In other words, if a person takes out a mortgage and defaults on several installments, the bank will initiate a foreclosure to auction the property and recover the money owed to them.

Since 2013, the bank can give up the loan early and initiate a foreclosure for non-payment of 3 or more installments (art. 24 LCI). This means that, even though we only owe 3 installments, the bank may demand that ALL the capital be returned to you in a single payment.

What to do when faced with a Foreclosure?

If the debtor finds that the bank has started the execution, it is essential to go to a specialized office to file an opposition. With the opposition we will obtain the dismissal of the execution or reduce its amount. Everything will depend on what abusive clauses the mortgage loan contains. For example, if the mortgage contains abusive default interest, we can suspend the procedure and significantly reduce the amount owed.

What is the deadline to oppose a Foreclosure?

The term is 10 business days (Saturdays, Sundays, holidays and the month of August are not taken into account). The computation starts from the day following the notification of the court’s request (art. 556 LEC).

As the term is very short, it is very important that you contact a lawyer specialized in Banking Law as soon as possible so that they can advise you and formulate the opposition.

BBS Abogados, Foreclosure Lawyers

From BBS Abogados, a law firm specialized in banking and financial law with more than 25 years of experience, we advise and accompany you during a foreclosure, to avoid it or reduce the amount claimed. Do not hesitate to contact us by writing to bbsabogados@bbsabogados.com or by calling 937 605 377.