At tzedakahhouse.org we are specialized in granting loans to be able to cancel liens and auctions , regardless of where they come from.
In turn, if the seizure has already taken place and the goods are going to go up for auction, we help you to stop the auction until the day the public auction is held.
It is vitally important to act as soon as possible if you find yourself in this second situation, since the closer we are to the completion of the process, the more costs must be assumed to be able to paralyze it.
In this article you will find all the keys to be able to stop a mortgage auction in the shortest possible time.
What is a judicial auction?
The judicial auctions are the last step that we find in any process of judicial seizure for non-payment of debts. A judicial embargo can be subject to any jurisdiction, be it civil, administrative, labor, or in the worst criminal case. However, civil embargo is usually the most common.
In addition, the term "judicial" is applied to all those seizure and auction processes that have been managed through a court (which amount to 90% of those processes). Other types of seizures and auctions are administrative, private and also criminal.
The taxpayer of the auction (auctioned), has the right to stop the judicial auction during any moment of the process, since this is determined by the regulations.
If so, the auctioneer must request an appearance with the executor in order to reach an agreement and agree on a payment plan and repayment of the debt.
Execution and development of the judicial auction
Today, the most common way of organizing auctions is electronically and telematically, through the auction portal of the Ministry of Justice.
Through it, what is called a “position” is fixed, that is, a bid is made for each of the lots (set of goods) or individual goods. When all bids have been collected, the auction ends. Such an auction can end in various ways. Let's see what they are:
- Bids greater than 70% of the value : the auction is closed and approved in favor of the highest bidder. This must enter the value of the position within a maximum period of 40 days. If you wish, you can pay it in installments.
- Bids lower than 70% of the value : when the best bid is less than 70%, the debtor has the right to present a third party to improve the bid, in a period of less than 10 days.
- If the debtor does not find that third party, the bid will be approved to the highest bidder as long as it exceeds 50% of the appraised value of the goods.
- If this previous point is not met, it will be the Judicial Secretary in charge of the Auction who will decide whether or not to approve the auction.
- Suspension : during any moment of the auction that is prior to the approval of the auction and closing, it is possible to stop it. This happens in the event that the executed pays the debt.
- Bid approval and adjudication : if the debtor does not exercise his right set in the previous point, the property will be awarded to the highest bidder and the auction will be considered finalized.
How to stop judicial auction
Remember that an auction is the last step in any seizure process, where the debtor's assets are put up for sale in order to pay the debt. The auction may be stopped if the creditor is able to collect the debt or an agreement is reached to pay it. This agreement can be of all kinds, such as:
- Extinguishing the debt that has led us to the judicial auction and agreeing on another loan and repayment terms.
- Agree with the creditor that the goods be sold externally to the auction , to achieve a higher profit and according to the market price, using that money to pay off the debt.
- Asking for an extension in the execution and the terms of repayment of the debt . This can be done if, for example, you are waiting to receive a short-term income with which you could get the money back. You have to be able to prove it to be effective.
All judicial auctions work based on the same operation and can be stopped at any time in the process (as long as it is before the execution of the auction itself), as we have specified above.
There is an exception, and that is that it can be stopped once the good has been auctioned, as long as the price has not been as expected. Even so, it is always recommended never to reach such a point.
In any case, it is always recommended to carry out the entire process of freezing a judicial auction accompanied by an expert in judicial executions or embargoes.
Next, we will see the two types of processes to stop judicial auction depending on the moment in which they are
Stop judicial auction during the debt ratification phase
Before the auction starts, an unpaid debt ratification process is carried out, where the financial institution or creditor to whom we owe the money, will be in charge of presenting all the necessary documentation to demonstrate that there is a debt. The judicial auction process can be stopped at this precise moment. Failure to do so, by not paying the amounts owed, begins the debt enforcement process.
Stop judicial auction during the asset investigation phase
Once the debt is ratified and as long as we do nothing about it, a patrimonial investigation phase will be launched to find out what assets we have and which are susceptible to being seized and subsequently auctioned. In this process, wages, salaries, pensions and income are also analyzed. In fact, the debtor's assets will be classified based on the principle of liquidity or ease of sale, with the money and all the current accounts available to be seized first. If we enter to negotiate a debt repayment plan, we will be able to stop the judicial auction during this patrimonial investigation phase.
Offering a payment plan stops the process
In any type of garnishment or court auction, you can negotiate with the creditor for a way to pay back the money and offer you a realistic payment plan. This process usually automatically stops the auction. In fact, the process of seizure and subsequent auction of goods can take months or even years.
For this reason, most creditors will prefer to negotiate a form of payment based on extending or improving the repayment conditions, before having to initiate a complex procedure at an administrative and operational level.
Request a loan at tzedakahhouse.org
If you find yourself in a legal auction situation, get in touch with tzedakahhouse.org so that we can study your situation and determine whether or not it is possible to end up in a judicial auction. Follow the next steps:
- Get in touch with us through tzedakahhouse.org. In the shortest possible time, one of our agents will contact you to study your situation.
- We will evaluate your debt and also the financial situation you present, to determine if it is possible to present a payment plan. In less than 72 hours, we will give you an answer according to our feasibility study.
- We will present a payment plan proposal to the creditor, we will take care of settling the debt for you and you will return it to us.
Stopping the judicial auction and liquidating the debt in question also means not appearing in delinquent records such as Credit Checker or RAI.
The conditions to be able to access this loan are the following:
- Have a property in your name : you must be the owner of a property that will be used as a guarantee or guarantee, be it a house, a garage, a commercial premises, etc. Said property must be free of mortgage charges.
- Request a minimum of € 20,000 : this amount allows us to meet the fixed expenses that are generated during the study and opening of the loan.
- The maximum amount of the loan will be 30% of the value of the property, regardless of the type of property.
For our part, all we have to do is the following:
- Determine the appraised value of the property you contribute
- Analyze the type of embargo and its causes
- Amounts owed to calculate a viable payment plan
- Term and status of the process
Get in contact with us
Do not hesitate to contact tzedakahhouse.org through the contact page, by phone or by sending an email.
Our agents will contact you in less than 24 hours to analyze your situation and offer you all possible exits.
Do not let the process run its course without the help of a professional, who can guide and advise you throughout the process and who, in turn, offers you a viable solution to the situation.