Case Study — Resolving a Non-Performing Loan in Lomas de Atizapán

A residential property in Lomas de Atizapán, in the State of Mexico, became the collateral behind a non-performing mortgage loan. The borrower had stopped payments, and the bank holding the loan moved to sell it at a discount rather than manage a foreclosure process internally.

The loan was acquired for MXN $1,608,000 — priced against the estimated value of the underlying property, not against the original loan balance. From there, the resolution followed the same in-house legal path described in every deal our specialist partner handles: foreclosure filing, court judgment, auction proceedings, and title transfer, all managed without outside litigators.

Once legal title was secured, the property was resold for MXN $3,250,000.

The gap between acquisition cost and resale value — after accounting for the legal and holding costs incurred during resolution — is what generates the return in a deal like this. Every distressed-debt deal resolves differently: some settle in cash before foreclosure completes, some end in a resold property, and timelines vary with the local legal process. This case illustrates one path a resolution can take when the process runs its full course.