Is Extrajudicial Auction of Real Estate (Leilão Extrajudicial De Imóveis) Completely Legal

An extrajudicial activity is a process or phenomenon in which the people deal with several matters without using a law or legal permission. In these days, uses of extrajudicial actions are becoming very common in finance and real estate industries. Usually, most people take mortgage to buy or renovate their homes. They have to repay loans with interest rate on maturity date. If someone fails to repay mortgage, then creditor can conduct an extrajudicial auction of real estate (leilão extrajudicial de imóveis).

Extrajudicial Auction:

Extrajudicial auction is a phenomenon of selling some property in real estate without involving law, legal regulations and permission from the court. The creditors have rights to conduct an extrajudicial auction when someone becomes defaulter. In such situations, the banks and private lending companies can organize extrajudicial auction of real estate (leilão extrajudicial de imóveis) to recover their mortgage amounts from borrowers.

Is This Auction Legal?

Many real estate investors and capitalists consider an extrajudicial auction an illegal action. In fact, there is a specific extrajudicial collection process and complete phenomenon. Creditors, banks and lenders have to meet all of these terms and conditions before to set an extrajudicial auction of real estate (leilão extrajudicial de imóveis). In addition, creditors are legally bound to send legal notices to borrowers.

What Should You Do?

Are you going to conduct an extrajudicial auction in real estate? You must meet all of fundamental formalities and requirements. You have to consider whole of the process. It is necessary for you to understand right ways to conduct extrajudicial auction of real estate (leilão extrajudicial de imóveis). It will prevent any legal action against you for setting such auction.

Conclusion:

Nowadays, creditors and banks always conduct auctions of property and land of the borrowers. They actually fail to repay their mortgages to lenders and then they are announced as defaulters. Creditors have authorities to set an extrajudicial auction of real estate (leilão extrajudicial de imóveis) to recover money.