Losing a home is one of the greatest fears for any homeowner in Puerto Rico. Whether due to mortgage arrears, unexpected debts, or personal challenges, many feel hopeless when they receive a foreclosure notice. However, the reality is that there are alternatives before losing the property in a foreclosure or auction.
In the latest episode of Café con INCANTO: Properties with Purpose, we spoke with attorney José García Noya, president of the firm García Angeli, about foreclosures, legal alternatives, auctions, and the impact of abandoned homes on property values.
Foreclosures: A Process No One Expects to Face
In Puerto Rico, foreclosures have increased in recent years. Many times, they arise from unexpected circumstances: a job loss, an illness, or a personal situation that can completely destabilize a family’s finances.
As attorney García Noya explains: “They are taking away your most precious asset — your home — and if you have a family… your mind clouds and you feel like there’s no solution.”
Alternatives Before Losing the Property
Although receiving a foreclosure notice can be terrifying, not all is lost. Some available options include:
- Negotiating directly with the bank: there are mitigation programs aimed at restructuring the debt.
- Strategic sale of the home: it’s not always necessary to sell cheaply; with the right strategy, it’s possible to recover part of the value and start fresh.
- Debt reorganization or bankruptcy: although a last resort, it can be a legal tool to save the property and protect long-term credit.
- Pre-auction agreements: even up to the day before, a solid offer can stop the auction and allow a fair transaction.
The Role of Brokers and Attorneys in the Process
During moments of intense emotional pressure, having ethical professionals is essential. A good broker or attorney can help:
- Evaluate the situation objectively, filtering out emotional overwhelm.
- Design a strategy to obtain the best possible price if a sale is necessary.
- Negotiate with banks or buyers under fair conditions.
Abandoned Homes: A Silent Threat to Property Value
In addition to foreclosures, another issue affecting homeowners in Puerto Rico is abandoned properties.
A public nuisance on the same street can make buyers hesitant and lower their offers. As the attorney notes: “An abandoned property on my street, in my neighborhood — that definitely affects the value of my home.”
The good news is that, with municipal intervention and proper management, many of these properties can be rehabilitated and turned into investment opportunities that benefit the entire community.
A Message of Hope
Although facing foreclosure or seeing your home at risk of auction can be devastating, there are always alternatives. The key is acting early, seeking professional guidance, and avoiding fear-driven decisions.
At Café con INCANTO, we believe every homeowner deserves a strategy — and that every problem has a solution.
📺 Watch the full episode here and learn how to protect your home and your investment in Puerto Rico.
