When a creditor sues a debtor for non-payment of the obligations, the property in the name of the debtor can be involved in an auction process. When this happens, a judge orders a specific place and date on which the auction of the property will be held. Anyone can bid for it, however, some “risks” must be taken into account.
The creditor has the option to sue in court in order to recover the loan debt by auctioning the property. This auction is ordered by a civil judge. It can also happen in case the property was acquired through a mortgage loan whose owner for some reason stopped paying or refuses to do so.