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Vulture Funds in Spain and Cyprus – What You Need to Know

News

Eoin Carlin

Published:

2 minute read

Vulture funds in Spain and Cyprus have become increasingly aggressive in pursuing foreign property mortgage debt.

These funds purchase distressed property investments for a fraction of their value, then pursue full repayment from borrowers, often using intense legal and financial pressure.

What Are Vulture Funds?

Vulture funds buy non-performing loans from banks, especially those related to distressed property investments in Spain and Cyprus. Once they acquire these foreign property bank debts, they attempt to recover as much as possible from borrowers.

You may experience:

  • Debt collection notices from foreign banks or their representatives.
  • Legal notices from foreign banks or solicitors acting for vulture funds.
  • A Writ of Summons from a Cypriot court or demands via Spanish legal channels.

Why Are They Targeting You?

Borrowers who owe foreign property mortgage debt, particularly in negative equity situations, are key targets for vulture funds. These entities often threaten repossession of abroad property, hoping borrowers will settle quickly out of fear.

Vulture funds often focus on:

  • Foreign mortgage problems where borrowers have fallen behind on payments.
  • Overseas mortgage problems stemming from fluctuating markets.
  • Properties that were part of distressed property investments Spain or Cyprus.

How You Can Respond

Don’t panic if you’ve received a legal notice from a foreign bank or vulture fund. There are steps you can take:

  • Seek expert legal help for international property disputes.
  • Evaluate whether the debt being pursued is accurate and enforceable.
  • Pursue out-of-court settlements for foreign property disputes.
  • Challenge the legitimacy or valuation of the debt.

At EU Property Solutions, we specialise in helping property owners push back. We offer:

  • Support in international property dispute resolution.
  • Representation for foreign court proceedings for property disputes abroad.
  • Strategies to avoid the repossession of abroad property.

Time to Act

Ignoring correspondence from vulture funds can be dangerous. Taking early legal advice gives you options and helps avoid unnecessary losses. Whether you’re in Spain, Cyprus or dealing with a lender elsewhere, we can help manage your foreign mortgage issues.

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