The reason your debt has been sold
Cypriot banks are notoriously slow, especially when it comes to dealing with debt. Borrowers who have stopped paying mortgages won’t hear from them for a long time, and when you do, it is likely to be a letter from a Vulture fund.
Many banks turn to vulture funds by selling the debt to them, which allows them to dispose of bad debt. These debt collectors are designed to recover money, making them more effective and economical for the banks.
Aggressive communication from vulture funds
When your loan is sold, the Vulture Fund will immediately start their aggressive path to collect the debt. In most cases, they will start with letters which come with bold and underlined text, which is, of course, designed to scare you into paying the full amount straight away! They will also start to call your home, and they could also change the terms of your loan, which means you could end up paying much more than the outstanding debt.
It is important to stay calm; every action they take is clearly designed to scare you, and you should always explore your options before saying yes to anything!
The difference between banks and vulture funds
The difference between banks and vulture funds is day and night. Banks can be slow to act, and vulture funds will race no matter the obstacles to collect your money. Their approach can vary, and steps may include;
- Aggressive behaviour through threatening letters, calls, texts and emails.
- They will go after your UK assets, including placing a second charge on your home.
- Any costs related to the process will be added to your debt, including compound interest.
Deal with the issue had on
Ignoring vulture funds will only make the situation worse, and as it progresses, it will be harder to negotiate with them.
EU Property Solutions has almost 20 years of experience dealing with vulture funds. We ensure each case is settled once and for all for our clients.
Call the team on 0330 124 1230 or email us at [email protected] to book a free full case review.
What Is a Vulture Fund in Foreign Property?
A vulture fund is a hedge fund or private equity firm that buys distressed debt, including foreign property mortgages, at a discounted rate. These funds often target unpaid loans from overseas homeowners facing financial difficulties, then seek to recover the full amount through legal action or resale. If you have unresolved mortgage debts, you may be at risk of vulture fund involvement.
Vulture funds profit by purchasing distressed foreign property debt—often from struggling companies, countries, or individuals—at a significant discount and recovering a higher amount through various means. Examples of vulture funds include DoValue, Sky CAC, EOS, Themis & Axactor.
The Central Bank does not directly regulate vulture funds themselves; however, the credit servicing firms that manage loans on their behalf are subject to regulatory oversight. This ensures some level of consumer protection, but the funds retain significant control over foreign property debt recovery strategies.
