What is an extrajudicial procedure?

Article by: Ana Valle | Last update: April 10, 2022
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The procedure of extrajudicial execution or extrajudicial sale has the same purpose for the bank, getting the house auctioned and collecting the pending debt. However, the differences between a procedure of this type and the judicial foreclosure procedure are very relevant.

What is the extrajudicial procedure?

Extrajudicial collection in Mexico

Extrajudicial collection can be defined as a procedure carried out by companies or businesses in order to give debtors a reminder about their pending payment. Usually these types of processes are carried out by a collection office.

What is an extrajudicial foreclosure?

Notarial foreclosure or extrajudicial foreclosure of the mortgage is a type of foreclosure through which the creditor can dispose of the house that has been mortgaged in order to collect the outstanding debt, with one peculiarity: this process is not carried out in court but before notary.

What is extrajudicial sale?

We can define the extrajudicial sale, as an act of voluntary jurisdiction, being an agreed way of making effective the creditor’s right to dispose of the mortgaged asset and obtain the satisfaction of his credit, which is done before a notary.

What is a notarial execution?

The notarial execution is an extrajudicial procedure that allows attempting the recovery of a debt, through the auction of those properties that the debtor gave as a guarantee of a debt (mortgage).

44 related questions found

How does foreclosure work?

It is the procedure by which the mortgagee (usually a financial institution) can collect their debt through the execution of the guarantee (the mortgaged home) if the debtor does not comply with his obligation to pay the installments.

What is a voluntary notarial auction?

The Voluntary Auction is a channel available to the owners of a property to attempt its sale to third parties, which consists of offering the property through the Auction Portal of the State Agency of the Official State Gazette.

How to sell a mortgaged house in Colombia?

How do you sell a house with a mortgage? An apartment with mortgage debt can be sold through a transfer of mortgage or by canceling the total value of the mortgage. Both ways have benefits for both you as a seller and the buyer.

How is extrajudicial collection carried out?

Extrajudicial Collection

In this stage of the collection in which the creditor collects and notifies customers who have had significant arrears in the payment of their products. Normally this stage enters after 30 days and up to 90 days of delay in relation to the original payment date.

Who performs the extrajudicial collection?

Extrajudicial Collection. It is in charge of the Management of Financial Entities and is carried out by means of telephone calls, sending letters, visits, publications in the press, radio announcements or other means.

What is judicial and extrajudicial collection?

The extrajudicial or prejudicial collection is a stage prior to the judicial collection, since they are all the efforts that a company makes to collect its money from the first day of default of the debtor, without appealing to a judicial demand.

How is the collection process carried out?

Collection consists of the recovery of credits previously granted by a company, usually Industrial, Commercial, Financial, or Service Provider activity, which is carried out in Mexico and in all countries of the world.

What are the stages of the collection procedure?

    Chart of the general collection system. System stage. … Impersonal routine stage. … Stage of impersonal exhortation. … Personalized exhortation stage. …Stage of drastic or legal action.

What is an extrajudicial debt?

extrajudicial summons

The word “extrajudicial” means precisely that it does not correspond to a trial in which the debt is claimed. Likewise, as stated in the introduction, giving the appearance of a judicial claim to these communications is an illegal practice (art.

What is the procedure to sell my house with a mortgage?

There are at least two ways to sell a mortgaged property, the first is by canceling the value of the debt with a payment given by the new buyer and the second is through mortgage subrogation.

How to sell a house that is mortgaged?

The owner of a home is allowed to sell it to a third party, regardless of whether the house is mortgaged. The only thing you have to do as an owner before selling your home is request a balance letter from the bank, Sofom, Infonavit or Fovissste.

How can a mortgaged house be sold?

“People can sell their mortgaged homes to a third party at any time and without any problem, all they have to do is request a balance letter from the bank or sofom (A Multiple Object Financial Company) that gave them financing, Infonavit or Fovissste.

What is a compulsory judicial auction?

The judicial auction is a procedure of forced alienation of an asset, for the payment of a debt. It involves the realization of previously seized debtor assets, with the aim of settling the default. There must be a court ruling ordering it.

How can a judicial auction be suspended?

In order to suspend an auction, it must be in the ‘Holding’ state. After selecting one of them in the auction list, click on the “Auction Details” button. Once on the detail screen, you will have to click on the “Suspend Auction” button.

How can I auction something?

Standard auctions work like this:

The seller bids on one or more items and sets a starting price. Buyers view the ad and bid on the item for as long as it is for sale. When the auction ends, the highest bidder or bidders buy the item from the seller for the bid highest.

How long does a foreclosure process take?

How long does a foreclosure take? Foreclosure depends on the court. Since the payment is stopped, it may be between 12 -14 months completed. For this reason, it is necessary to act quickly before the start of any communication by the financial institution or court.

How long does the foreclosure process take?

Finalizing the foreclosure process can take 120 days or 180 days, as long as the decision to foreclose is not contested. It can last much longer if you contest the foreclosure, request a stay or stay of the court proceeding, or file for bankruptcy.

What type of proceeding is a foreclosure?

The foreclosure procedure is an executive procedure by which the creditor, in the event of non-compliance with the secured obligation by the debtor, requests the execution of the property on which the real right of mortgage falls.

What are the 7 types of collection?

Normal collection: issuance of the account statement with receipt of payment by traditional means. Prejudicial collection: external collection agencies.

Judicial collection.

    Normal billing. … Preventive collection. … Administrative collection. … Home collection. … Extrajudicial collection. … Prejudicial collection. … Judicial collection.

What is the collection cycle?

Collection cycle.

The collection cycle of a company must be measured in days, since the sale is made at the time of billing, until the money is deposited in the company’s bank accounts, this cycle includes several phases that are represented in the following diagram.

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