Buying a house at a banking auction in Mexico is fairly easy if you follow the necessary steps in order to complete the process. All you need is a good legal representation and an estimate of how much money you wish to spend. Next, follow these steps to buy a house at a banking auction in Mexico.
1. When a mortgage loan is no longer paid, the banking institution by law can reclaim the property and put it up for auction.
Same as it is in the United States if a person does not pay his mortgage the bank can take away the property from him. This property goes into a list of real estate and properties that are to be auctioned in the near future.
2. The property that enters into legal conflict is placed at the disposal of a court, which will proceed to sell it at a public auction.
What makes the bank auctions in Mexico extremely safe for the buyer is that a state judge oversees all of the action and gives legality to the purchase being done. You don't deal with the owners and the property is yours almost immediately.
3. To participate, those interested must make a deposit in BANSEFI OF 10% of the published value and make an offer privately.
Banking Auctions in Mexico are not done publicly, they are what in the United States they refer to as silent auctions. There is no direct competition between particulars and you never know what the person next to you bid.
4. For security, you must go to the auction with the deposit ticket made in Bansefi.
Bansefi is the government institution in charge of regulating banking auctions. All of the money needs to go through their website. They will do the due diligence and give the okay to the judge that your bid is legitimate.
5. In this auction, the mortgage rights are granted to a third party, who must follow a legal procedure and become the new owner.
If you win the auction, you are automatically granted property rights there on the spot. If you do not wish to go you can give power of attorney to a trusted representative. The best thing about this part is that you become the owner the same day of the auction.
6. After the last step, the property is deeded
In order to complete this step, you will have to go to a Notario in Mexico. The role of a Notario in Mexico and a Notary in the United States is completely different. You have to pay a Notario in Mexico about 800 dollars for him to draft the deed to your new house.
7. The winner of the auction must pay the balance due (the purchase price less the 10% already on deposit ) in the period ordered by the judge through a resolution approving the auction, which ranges from 3 to 5days or from 10 to 15 days.
It is important to know that the payment for the house cannot be done in installments, it needs to be done in one whole payment in the amount of time that the judge determines. This is usually close to the date of the auction so you should have your money ready.
8. The possession of the property is given in a period of 6 to 12 months, assuming that all previous steps have been completed successfully
Times may vary depending on the type of land or real estate you purchased, but it is estimated that you will be living in your newly acquired property in less than a year. This is of course if you have all of your paperwork in order.
Besides the purchase of the property, there are other expenses that you should consider such as lawyer expenses, the Notario, and any and all pending expenses associated with the real estate.
It would be difficult for me to tell you how much this will cost as the cost of the Notaro can vary and how much involvement from a lawyer in Mexico you will need for the purchase. Every house in the banking auction has some sort of pending services and furnishes that need to be done so you should take those costs into consideration when purchasing the property.
Even though you purchased the property legally, you won’t be able to visit the property until everything has been put in order. In most cases, the past tenant will continue to live there until he is legally evicted.
The steps you have to follow in order to purchase property in Mexico through a banking auction are fairly simple. In just over a year you could own a vast amount of real estate in the country at a cost of less than 50 percent of what is estimated to be worth. Call us and we will happily guide
you through the process.
I hope you’ve found this article on buying a house at a banking auction in Mexico to be helpful.
For more information, or for assistance in any legal matter involving Mexico please contact us at firstname.lastname@example.org.