Discounted real estate investment in Valencia: NPL, REO and auction assignment
Assets where others
see problems.
NPLs, auction assignments and REO below market value. With due diligence and an in-house legal team on every operation.
Three ways to buy below market value.
A flat with a problem is worth less than the same flat without one. That's where the discount comes from. And the problem is usually one of these: someone stopped paying the mortgage, the court is slow or there are people living inside. Sorting that out is what we do every day.
You don't buy blind here. Before you put in a single euro we tell you which flat it is, who it's being bought from, what could go wrong and how long it may take.
You buy from the bank, or the fund, the mortgage someone stopped paying. From that moment you are the creditor, and the home stands behind the debt. Then one of three things happens: you reach a deal with the debtor, you get paid when the flat goes to auction, or you end up with it. We go through it slowly in what an NPL is.
When a flat goes to court auction, the creditor who asked for it can pass on to someone else what it is awarded. That someone can be you. You come in at the auction price, with no need to bid and with the flat already studied. It has its own page: auction assignment (cesión de remate).
These are flats the bank already took after foreclosing on a mortgage and now wants to sell. You buy them straight from the bank. They hardly ever come clean: there's usually someone living there, building work to do or paperwork to fix. More in what an REO is.
Where others see a problem, we see margin.
Real NPL, auction assignment and REO cases. Tap any of them for the full detail.
Real, anonymised historical transactions and returns. They do not guarantee future results: any investment in real assets involves risks, including the possible loss of capital.
From distressed asset to opportunity.
We find the flat
An NPL, an auction assignment or an REO that can be bought for less than it's worth.
We go through it closely
Registry, charges, who lives there and what it's really worth. If the numbers don't work, we tell you and it doesn't go ahead.
We fix the problem
Getting possession back, eviction if it comes to that and the paperwork in order. Our legal team takes care of it.
And it's sold
Or let, if that suits you better. Now without the problem that made it cheap.
How to buy a mortgage debt, step by step.
Buying an NPL means buying from the bank or fund the loan someone stopped paying, together with the mortgage that secures it. These are the steps, who handles them and what they cost in tax.
1. We present the dealThe property, the debt, the court case and the numbers in one sheet.Handled byÓscar Ferrer
What you get
A sheet with the property, what is owed, where the court case stands and a first view of what can go well and badly.
2. We study it in depthLand Registry, charges, occupancy, court, real value and legal risks.Handled byEstela Gisbert, lawyer
What we check
- Land Registry extract and charges: anything registered before the mortgage survives the auction.
- Who lives there and on what basis.
- The court case and its stage.
- Whether the debtor could use the right of redemption of a litigious credit (article 1535 of the Civil Code).
- Whether the deal ends in the purchase of a home by an entity covered by the 70% limit in Royal Decree-law 29/2026, in force since 8 October and pending validation.
- A realistic market value.
3. You buy the loanPublic deed before a notary and entry in the Land Registry.TaxAJD 1.4%
How it works
The transfer of a mortgage loan is made in a public deed and registered (article 149 of the Mortgage Law). From then on you are the creditor, mortgage included (article 1528 of the Civil Code), and the debtor is notified (article 242 of the Mortgage Regulation).
What you pay
If a bank sells, there is no VAT or transfer tax. The deed pays stamp duty (AJD), 1.4% in the Valencia region since 1 June 2026, calculated on the debt secured by the mortgage, not on what you pay for the loan. We give you the exact figure before signing.
4. You take the bank's place in courtProcedural succession: the case continues in your name.TimeSet by the court
How it works
With the deed, the court is asked to recognise you as the new creditor (articles 17 and 540 of the Civil Procedure Act). If the case was already under way, it depends on the stage: in ordinary proceedings the other side has 10 days to respond, and in enforcement the court decides on the documents and, if they are not enough, hears the parties.
5. The exitAgreement with the debtor, auction, award or assignment of the bid.TimeDepends on the stage
What can happen
See just below: each exit has its own timing, risk and tax.
How an NPL deal ends.
A purchased debt can be closed in several ways. The first is usually the best for everyone, the debtor included.
Agreement with the debtorDeed in lieu (dación en pago), agreed sale, write-off or time to sell on their own.UsuallyThe fastest
Why it works
The debtor closes the debt without an auction or eviction and the creditor saves years in court. Óscar negotiates each case with respect: a good agreement is good for both sides.
The auction, and you get paidAnother bidder takes the property and you collect your credit.You collectUp to what is owed
How it works
Bids run for 20 calendar days on the BOE auction portal (article 649 of the Civil Procedure Act). From the winning bid you collect up to your credit; any surplus goes first to later creditors and then to the owner (article 692.1).
You take the propertyYou bid as creditor and the property becomes yours.TaxITP 9%
How it works
As the enforcing creditor you can bid without a deposit (article 647.2). If it is the debtor's main home, the bid is not approved below 70% of the auction value unless it covers the whole debt, and never below 60% (article 670.3). Transfer tax is then 9% in the Valencia region (11% above €1,000,000).
Watch out in 2026
Royal Decree-law 29/2026, in force since 8 October and pending validation, limits until 2030 the purchase of homes below 70% of market value by those in the business of buying portfolios or discounted properties. We check it on every deal.
You assign the bidSomeone else takes the property in your place.Time5 days
How it works
The enforcing creditor and later creditors can assign the winning bid to a third party; in enforcements started from 3 April 2025 this right no longer has to be reserved when bidding (article 647.3). The assignment is filed in writing within the 5 days set by the court clerk, and its price can be lower than the bid.
Read more
Nobody bidsSince April 2025 the creditor can no longer ask to be awarded the property.RuleArt. 671 LEC
What happens
If the auction has no bids, the attachment is lifted at the debtor's request, and the debtor can present a buyer for at least 50% of the auction value, or for the whole debt if it covers at least 40%. Enforcements started before 3 April 2025 follow the old rule.
Read more
The debtor redeems the creditThey pay what you paid, plus costs and interest, and their debt is extinguished.Time9 days
When it can happen
Only if the credit was litigious: a declaratory lawsuit over the debt, defended and without a final judgment (article 1535 of the Civil Code). The Supreme Court rules it out for portfolios sold at one overall price. If it happens, you recover what you paid, not the margin. That is why it is checked before buying.
Read more
What we check before we say yes.
There are five things we always look at, on every deal. If one of them fails, we'll usually tell you it isn't worth it.
- The land registryWe order the registry extract and read which charges the flat carries and in what order. Watch this one: charges that rank ahead of the one being enforced don't disappear with the auction. Whoever buys takes them on. We explain it in charges at auction.
- What the registry doesn't showUnpaid property tax (IBI) and community fees stay attached to the flat, within the limits set by law. That's why we ask for the certificates before buying, not after.
- Who lives thereAn empty flat is nothing like one where the former owner is still inside, there's a tenant with a contract or there are occupants with no title. It changes how long you'll wait and what makes sense to pay. See buying an occupied flat.
- Where the court case standsA case about to reach auction and one that has just been filed are two different deals, even if the flat is the same.
- What it's really worthWe do a realistic valuation to check the discount is real. A very low starting price isn't always a bargain.
What can go wrong.
We'll say it plainly: these flats are cheap because they carry risk. We'd rather tell you now than halfway through.
The timelines aren't up to us, they're up to the court. A deal we expected to take a few months can run a good deal longer, and in the meantime your money is tied up.
If there are people inside, getting the flat handed over can take longer and cost more, and if the occupant is a vulnerable person with nowhere else to go, the eviction can be suspended. A charge or a debt can turn up and eat part of the margin, although that's why we study it first. And the market can drop between the day you buy and the day you sell.
That's why nobody here will talk to you about guaranteed returns. You can lose part of your money, or all of it. The figures you see on this page are deals that have already closed, not a promise of what will happen with yours.
Who it is for and who it is not.
- You have your own capital and look for assets at a real discount to value.
- You understand the return depends on court timelines.
- You want an in-house legal team on every deal.
- You want a guaranteed return or immediate liquidity.
- You do not accept occupancy, charge or timing risk.
Who handles your deal.
The deals are sourced and analysed by Óscar Ferrer García, CEO of Equus Capital, who spent almost ten years as a notary's officer. When you book a consultation, you talk to him.
The legal side is handled from start to finish by Estela Gisbert Vallés, a lawyer registered with the Valencia Bar (ICAV no. 14,209) who specialises in real estate law and distressed assets, and Miguel Agüera Ramón, registered lawyer (ICAV 17,066), who advises on NPL deals. You can meet all of us on the About us page.
Where to start, depending on your situation.
I have capital and want to start
What we do
At the free first consultation we see which kind of deal suits you and sign you up for alerts on new opportunities.
Read more
I have been offered a debt or an assignment and want it checked
What we do
Before you sign we check the registry, charges, occupancy, court case, redemption risk and numbers. If it does not work, we tell you.
I won a property at auction and it is occupied
What we do
You have one year from the acquisition to ask the same court for the eviction (article 675 of the Civil Procedure Act).
Read more
I want to buy a bank-owned flat
What we do
It almost always pays transfer tax, not VAT, and it usually comes with a problem: occupancy, works or paperwork.
The debtor on my NPL wants to negotiate
What we do
It is often the best exit: deed in lieu, agreed sale or write-off, with numbers that work for both sides.
Read more
I am the debtor: my mortgage was sold or my home is going to auction
What we do
You have options and rights. We explain them clearly.
What you pay in tax, route by route.
Valencia region figures, in force in October 2026. Before each deal we give you the exact numbers.
| Buying the loan from a bank or fund | No VAT or transfer tax. The transfer deed pays stamp duty (AJD): 1.4% in the Valencia region. |
|---|---|
| Being awarded the property at auction | Transfer tax (ITP) of 9% (11% if the value exceeds €1,000,000), on the highest of the cadastral reference value, the price and the declared value. |
| Auction assignment | ITP at 9%. If the assignment follows the procedural rules, the assignee receives the property directly; before signing we check how it is taxed, because article 20 of the ITP Regulation has not been adapted to the 2025 reform. |
| Buying a bank-owned flat | Usually ITP at 9%. VAT if it is a first delivery for VAT purposes, or if the bank waives the exemption because you, acting as a business or professional, meet the requirements to deduct it. |
| Selling the property as an individual | The gain goes to the savings income tax base: 19% to 30% depending on the amount, plus municipal plusvalía. |
| Collecting more on a loan than you paid | How it is taxed depends on how the income is classified in your case. We review it with you before buying. |
Sources: Valencian Law 13/1997 (articles 13 and 14), the consolidated Transfer Tax Act and Regulation, the VAT Act and the Income Tax Act (articles 46, 66 and 76).
What changed in 2025 and 2026.
Auctions (from 3 April 2025)
Organic Law 1/2025 raised the deposit to bid on property to 20%, set 20 days to pay the balance, lets the bid be assigned without reserving the right, and removed the creditor's award when nobody bids. Enforcements started earlier keep the old rules.
Negotiate before suing (from 3 April 2025)
Before declaratory proceedings you must try to reach an agreement. If the other side does not reply within 30 calendar days, the attempt counts as made.
Transfer tax at 9% in the Valencia region (from 1 June 2026)
The general rate fell from 10% to 9%; 11% above €1,000,000.
Royal Decree-law 29/2026 (from 8 October 2026)
Until 2030 it limits the purchase of homes below 70% of market value by those in the business of buying portfolios or discounted properties and by large corporate landlords, and suspends some evictions of vulnerable people until 2030. It is pending validation by Parliament: we follow it and explain it on every deal.
Evictions of vulnerable people from their main home
The Law 1/2013 suspension for mortgage enforcements runs until 15 May 2028.
The numbers, in three scenarios
A hypothetical example with round numbers. It is not one of our deals and not a forecast for yours: it shows which costs go into the sum and how the result changes when something goes wrong. We assume an assignment of an auction bid (cesión de remate) for a flat in Valencia. Land Registry and notary figures are estimates based on the official fee scales. Results are before lawyer and court agent (procurador) fees and before tax on the gain, which depends on each investor.
| Price you pay for the assigned auction bid | €120,000 |
| Transfer tax (ITP): 9 % in the Valencian Community since 1 June 2026. It is charged on the price, or on the Land Registry (Catastro) reference value if that is higher; here we assume it is lower | €10,800 |
| Land Registry: registering the court's award decree and cancelling the mortgage and later charges (estimate) | €400 |
| Notary: there is no deed when you buy, your title is the court decree. There is one when you sell: deed, energy certificate and other paperwork (estimate) | €1,000 |
| Service charges the previous owner left unpaid. The flat is liable for the current year and the three before it | €2,400 |
| Unpaid property tax (IBI), which also stays attached to the flat | €1,200 |
| Refurbishment in the first scenario. You usually cannot go inside before an auction, so this is an estimate | €15,000 |
| Monthly costs while the flat is yours: service charges, IBI, insurance and utilities | €150 a month |
| Time until sale in the first scenario: 10 months | |
| Lawyer and court agent: agreed with you before we start and not included in these figures. Nor are income or corporate tax and the municipal capital gains tax on the sale |
If it goes as planned
Everything goes as we studied it. The flat is empty, you get the keys shortly after the decree, the refurbishment costs €15,000 and you sell within 10 months for €175,000, a price we already set below local asking prices.
You put in about €152,300 and make about €22,700, roughly 15 % over 10 months.
If an eviction is needed
The former owner is still living there and you have to ask the same court for an eviction. They leave, but it takes 16 months to sell, the refurbishment rises to €18,000 and you sell for €170,000.
You put in about €156,200 and make about €13,800, close to 9 % over 16 months.
If it gets complicated
The occupants claim a right to stay and the matter ends up in a separate lawsuit. It takes 3 years to sell, the flat is damaged and the refurbishment reaches €30,000, and the market falls: you sell for €150,000.
You put in about €171,200 and lose about €21,200, around 12 % of your money, after 3 years. And the costs of the lawsuit still have to be added.
What can go wrong, and our role.
Occupation drags on. If someone inside has a lease or claims a right to stay, the court hears them before deciding. And if the occupant's right to stay was not decided before the auction, eviction within the same enforcement case has to be requested within one year of the acquisition; after that year, it takes a separate lawsuit.
- How we measure it beforehand
- Before buying we try to find out who lives there and on what basis: the court file, the owners' association and what can be seen from outside. We put into the numbers the time to possession that looks realistic for that case, not the shortest one.
Charges that survive. Whoever acquires the flat at auction accepts the charges ranking ahead of the debt being enforced. If there is an earlier mortgage or attachment, it is not cancelled: the property remains liable for that debt and, if it is not paid, it can be auctioned again.
- How we measure it beforehand
- We read the charges certificate in the court file and request an up to date land registry extract before paying. Anything ranking ahead is deducted from the price worth paying.
The debtor appeals or pays. With an NPL the debtor can object, argue unfair terms or appeal, and every filing adds months. The debtor can also pay the full debt before the auction bid is approved and keep the flat: the auction is cancelled and the deal changes.
- How we measure it beforehand
- We review the court file and the loan deed: what has already been argued, which appeals remain and which clauses could be challenged. From that we estimate how long it could drag on and what you would recover if the debtor pays.
Court timescales. Depending on the stage of the proceedings, the exit can come in 2 months or take 60. Meanwhile, your money is tied up.
- How we measure it beforehand
- We check exactly where the proceedings stand and what is left until the award and possession. We run the numbers on a long timescale and tell you whether your money can wait that long.
You sell for less than planned. The market can fall between buying and selling, and a flat you could not see inside may be worth less than it looked.
- How we measure it beforehand
- We value it against similar flats in the same area and set a sale price below local asking prices. If the deal only works at the high price, we do not put it to you.
Costs go up. The refurbishment costs more, more unpaid service charges or IBI turn up, or the tax is charged on the Catastro reference value because it is higher than the price.
- How we measure it beforehand
- We ask the owners' association for a debt certificate, check the reference value before working out the tax and leave a margin in the refurbishment budget.
We find and analyse the deal, and our own legal team handles it from start to finish. We do not guarantee results: we show you the numbers and the risks beforehand, and the decision is yours. Our fees are agreed with you before we start.
Everything about NPLs and auctions.
If your question isn't here, we'll answer it in your first consultation, free of charge.
Equus Capital, from our office at Av. Giorgeta 43 in Valencia. Deals are sourced and analysed by Óscar Ferrer, who spent almost ten years as a notary's officer, and the legal side is handled by Estela Gisbert Vallés, a lawyer registered with the Valencia Bar (ICAV no. 14,209), and Miguel Agüera Ramón, registered lawyer (ICAV 17,066). We work on deals across Spain.
A defaulted loan that a bank or fund sells at a discount. When you buy it you become the creditor, with the mortgage that secures it. We explain it in what an NPL is.
Yes. A credit can be transferred without the debtor's consent (articles 1112 and 1526 of the Civil Code); if it is a mortgage loan, the transfer is made by public deed and registered (article 149 of the Mortgage Law). What matters is studying it properly first.
It depends on each deal and how it ends. Ours have ranged from 18.9% in 9.5 months (an IRR of 24.4%) to €55,000 above the amount invested in 60 days, before costs. These are closed deals, not a promise: you can make less or lose money.
From a few months, if there is an agreement with the debtor, to several years, if it goes to auction and eviction. The stage of the court case when you buy matters most, and court timing depends on nobody.
Earlier charges that survive the auction, occupants, court delays, the debtor redeeming a litigious credit, a falling market and, in 2026, the 70% limit in Royal Decree-law 29/2026 on some home purchases by entities. That is why there are no guaranteed returns.
Only if the credit was litigious: a declaratory lawsuit over the debt, defended and without a final judgment (article 1535 of the Civil Code). The Supreme Court rules it out for portfolios sold at one overall price. More in redemption of a litigious credit.
If a bank sells, no VAT or transfer tax. The transfer deed pays stamp duty (AJD), 1.4% in the Valencia region since 1 June 2026. If you later take the property, you pay 9% transfer tax.
The creditor who wins the auction assigns the property to someone else, who is awarded it directly (article 647.3 of the Civil Procedure Act). Only the enforcing creditor and later creditors can assign. We explain it in auction assignment.
Since 3 April 2025 the creditor can no longer ask to be awarded the property. The attachment is lifted at the debtor's request, and the debtor can present a buyer for at least 50% of the auction value, or for the whole debt if it covers at least 40% (article 671). More in no bidders at auction.
If you are awarded it, you have one year to ask the same court for the eviction (article 675). A tenant with a contract may be entitled to stay, and evictions of vulnerable people may be suspended. More in an occupied flat won at auction.
Usually not. The law lets you ask to inspect a property at auction, but only if the occupier agrees (article 669.3). We look at what can be seen from outside, ask the building's community and budget for refurbishment.
A property the bank has already taken and is now selling. It almost always pays 9% transfer tax, not VAT, because it is a second sale. More in bank-owned flat: VAT or transfer tax?.
From 3 April 2025: a 20% deposit for property, 20 days to pay the balance, assignment of the bid without reserving it, and no award to the creditor when nobody bids. Enforcements started earlier keep the old rules (5% and 40 days).
In force since 8 October 2026 and pending validation. Until 2030 it limits the purchase of homes below 70% of market value by those in the business of buying portfolios or discounted properties and by large corporate landlords. We check it on every deal.
We explain their options clearly and, when we are a party, look for a negotiated exit that works for both sides: deed in lieu, agreed sale, write-off or time to sell. More in a fund bought my mortgage.
Equus is paid by the investor: our fees are agreed with you before we start, depending on the deal, and we take no commission from the bank or fund selling the debt. The first consultation is free.
On opportunities we publish current NPL, REO and auction assignment deals, with no debtor data, and you can sign up for alerts.
Do you have a
complex?
We study it with you. Debt, auction, occupancy or inheritance involving property.