The 31-year-old once played for the Blancos' B and C teams, but feels the club lost respect of fans around Spain under Jose Mourinho's tenure
The 31-year-old will face his former employer in their La Liga clash on Wednesday and he believes los Blancos lack the class they used to.
One man he blames for this in particular is Jose Mourinho, who left the Santiago Bernabeu this summer after three years in charge.
"I think Madrid have lost some of the values they had previously," Herrera told AS. "During the past three years, they have made more enemies than perhaps they realise.
"Years ago, they were the biggest and most respected team in the whole of Spain. For certain reasons, they have lost support. In days gone by, they set an example at every ground in Spain for their conduct and way of dealing with others.
"Mourinho was an amazing coach during his time at Real Madrid - and he still is - but he came across as being arrogant and that was unnecessary.
"His teams already show how good they are out on the pitch, there’s no need for him to stress the point. Off the pitch, it’s important to be humble, respectful and to set an example."