The Auction

The reason for these sobrevaloraciones (which are not binding for the tax administration, as provided for in article 57.1 of law 58/2003, of December 17, General tax), they have their raison d ‘ etre in facilitating thrust of the real estate market prior to the bursting of the real estate bubble, by providing the necessary funding for the purchase of houses, flats and premises through the granting of mortgage loans for a few quantities exceeding the purchase price and that have motivated an increase fictional demand and real estate offer and the omission of the correlative responsibility of the appraisal companies. Obviously the problem arises because these valuations, that should be reflected in the articles of incorporation of the mortgage, determine the maximum liability that must cover the farm given in mortgage and, most importantly, by legal mandate, serve as a kind of output for purposes of auction (cf. Article 682.2.1 and 694.) (2 In fine of the LEC). In effect, an overvaluation of the mortgaged estate seriously harms the interests of the creditor and the mortgage debtor and, since then, denatures the judicial sale in public auction procedure. The auction is the ordinary means that arbitrates the law for the realization of assets seized and mortgaged. The procedure consists in the realization of assets through public alienation, to which any person, transmitting the auctioned property judicially who can attend to offer and page by a greater amount of money, provided that you exceed the minimums required by law (cf. articles 650, 670, 692 and 693 of the LEC).