To know if a property has been seized, you just have to ask for a simple note of the property in the corresponding property register. You will have to provide the registration number with which the property is registered or the DNI or CIF of the current owner. You can get more information about how to carry out this process here.
It is important to understand that a seizure is a legal remedy executed over a property or building with the intention of settling an existing, outstanding debt.
What does it mean when a property is seized?
The seizure affects a registered property whose owner acquired a debt which is not being paid, therefore is demanded through this legal means. In addition, if the debtor does not settle the outstanding amount owed, the creditor is entitled to demand payment, an aspect that generates costs which will always affect the debtor.
Also, the seizure can also imply a different property from the one mortgaged because the mortgage loan usually contains a double guarantee, in which two properties are given as guarantee for a credit.
The preventive seizure happens after the legal complaint of the debt has been taken with the banking institution. After a trial and in a period between one or two years, there will be a notification that the property is to be auctioned. In this moment, the seizure is in a judicial phase.
What happens after a property is seized?
When the seizure happens, this is noted in the property register, leaving a record that such property belongs to a determined debt which carries a specific amount and which is detailed in the entry record of the property, which will also show if it has a legal preventive seizure, as well as any other outstanding debts. Considering that this is a public register, everyone is able to access this information.
So, if you want to know if a property has been seized, all you need to do is just ask for an updated simple note of the property in the corresponding property register.
How do I get my seized property back?
It is important to know that an annotation of seizure does not stop the carrying out of legal business for both the owner or any other person, such as a potential buyer. The only “but” is that the purchaser will also inherit the debt. If the property has outstanding debts, its market price will be reduced. This reduction will include any expenses derived from the situation. As mentioned, the seizure has a specific amount or quantity, therefore it is reduced from the total price of the property.
Thus, the buyer of a seized house, once the property is acquired and pays the accorded price, must know the amount that he/she will have to pay in the future to the creditor.
The bank takes charge of the debt for the valued price after the suit has been brought and executed, after that, the property sale price is agreed upon in the mortgage deeds. Usually, the price of this auction is lower than the prize that the property originally had when it was bought. This implies a larger benefit for the financial or banking entity because they acquire the property at a lower value than when the debtor acquired it.
At this point, the property can be auctioned for a price over the initial loan amount; in this case, the difference affects the debtor client. If, on the contrary, the house is sold at a lower price than the initial loan, the debtor will keep the initial debt which will need to be paid when his/her economic situation allows him/her to do so.
By Massimo Filippa
Information given is offered for informational purposes, excluding the company and the author from all responsibility, and does not constitute an official publication nor will it be legally binding. We always recommend checking with your lawyer or adviser.