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Vulture Funds and Loan Sales Explained: Part 2

18 December 20223 min readby Tom Miskelly

Cyprus Loan Sales Other Countries Property Debt Spain Vulture Funds

In the first part of this blog, we looked at the background of Vulture Funds and explained why your non-performing loan (NPL) may have been sold. Part 2 of this blog will explain exactly what it means for you and what you can do if you fall victim to a loan sale.

Can the Bank Sell My Loan?

Ultimately, lenders can sell any loans as they wish and, unfortunately, your lender does not need your permission. This is usually in the small print of your mortgage agreement.

The first you may know of a loan sale may be the first correspondence from the Vulture Fund such as SKY CAC. The Vulture Fund will write to inform you that your lender has sold your loan. This can occur years after you last spoke with your lender.

What does it mean for my holiday home mortgage?

Although it may have been several years since you last spoke with your lender, Vulture Funds can act quickly and in the immediate term you can expect:

  • More aggressive pursual tactics – Vulture Funds use more aggressive techniques to harass borrowers, this will include threatening letters, calls, emails and texts.
  • Your UK assets to be at risk, especially with 2nd charges on UK homes – lenders can work across jurisdictions, and this puts your UK assets e.g. your home at risk.
  • Rising costs – As your case goes on, the Vulture Fund will add additional costs, legal fees, and compound interest

Can I Ignore Vulture Funds?

If you ignore a Vulture Fund, you can expect them to become less receptive to offers down the line. The situation will also have progressed, making it harder to halt legal action & negotiate with your best interests in mind and finally, they will become more likely to chase you across jurisdictions.

Can Vulture Funds Chase me in the UK?

The simple answer is YES.

Legal notification will be sent to your 2nd address in Europe. The Vulture Fund may contact you in the UK but this is not guaranteed. As a result of this, many overseas borrowers are unaware of proceedings against them until the process is gathering pace. In terms of debt pursuit in the UK or Ireland, lenders will look to recover your home assets.

On top of this, many lenders will appoint UK Debt Collection agents leading to an effect on your credit report.

What can you do?

You have two options at this stage:

  1. Ignore the issue and hope that it disappears. You will face rising costs, additional interest, and an increasingly aggressive Vulture Fund. Your assets in the UK will be at risk and your chances of ever finding a resolution are low.
  2. Speak to an expert, reach a settlement, and leave it all behind you. We can assess our situation in a free initial consultation, with no obligations. We understand how Vulture Funds work and most importantly, we know how to help you. After the process is over, you will be free of all foreign financial burdens.

Call us today on 0330 124 1230 or email us at [email protected]. We can provide solutions for any foreign property issues. Don’t believe us? Read more about some of the people we have achieved life-changing settlements.

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