When property owners default on their payments, the creditor initiates the legal process to recover that debt through a foreclosure procedure.

The property owners are legally notified and they are given a period to rectify the situation by either paying or negotiating the outstanding debt.

If owners fail to resolve the debt, the cases may proceed to courts or others public institutions, who may issue a foreclosure order, authorising the auction of the mortgaged or seized property to recover the outstanding debt.

Once the legal requirements are met, the auction is announced with an ending date as well as an assigned value which serve as a reference point for setting the auction starting price. 

A deposit must be paid in order to participate. The highest bid at the auction wins the property. After winning the auction, the remaining balance must be paid.

Otherwise, in case a bidder would not win the auction this deposit will be refunded. 

Once the full payment is received, the institution in charge of the auction will transfer the ownership and possession of the property to the winning bidder. The new owner assumes all rights and responsabilities associated with the property, including some outstanding debts and charges.