What to Expect for your Foreign Property in 2023
6 February 2023 • 2 min read • by Tom Miskelly
As we head into 2023 things are looking up for foreign properties. Property owners in Europe have experienced years of falling prices and next to no rental income. But as we get back on track, what can you expect for your foreign property in 2023?
Loan Sales & Vulture Funds – Back Again?
Prominent after 2008, vulture funds never really went away. However, with an increasing number of people struggling to pay their mortgages and loan sales on the rise, these companies are making a resurgence. For any of you who are not familiar with these loan purchasing companies, they buy “distressed” debt from lenders and pursue the mortgage holder. They are often aggressive in their pursuit and are harder to negotiate with than the banks. If you are struggling to pay your mortgage, you may find yourself victim to a loan sale. This could leave you open to pursual action in Europe and at home. However, there are always options available no matter what stage of this process.
Rising Foreign Property Prices? We Hope
The last few months of 2022 showed some encouraging signs in terms of property prices, especially in Spain and Cyprus. Optimism and an increase in travel have increased the demand for holiday homes, with this demand likely to increase. This comes on the back of record price drops in 2020 and 2021 as a result of the pandemic. Despite any increase, house prices are still to remain well below pre-2008 levels. There are over 250,000 people still trapped in negative equity in Spain alone. For many this will make little difference however, the hope is that this trend continues in 2023, helping to ease some of the negative equity woes of homeowners.
Bank Pursual Efforts – It’s not all bad…
In line with increasing numbers of loan sales, banks are becoming more aggressive and litigious in an attempt to recover their money. Many of the banks have struggled for cash over the past few years, now they are beginning to worry. As a result of this, we have seen an increasing number of banks appointing agencies to collect debts in the UK and Ireland.
These agencies can be very persistent and aggressive. A recent client was warned that she had been declared a “non-cooperative customer”. She found herself being contacted every 2-3 days with various threats and warnings of additional fees and legal proceedings. But it’s not all doom and gloom. This struggle for cash is likely to make the banks more open to negotiation and settlement (that’s where we come in). This means that, with the right help, 2023 could be the year we finally see the mortgage issues of long-suffering homeowners put to bed.
What to expect…
So plenty to look forward to in the year ahead although it could still be a bumpy road. Will 2023 be the year you resolve to solve your foreign property issues? Our team are always available to discuss your options. Contact us today on +44 (0) 333 455 1089 to find out how EU Property Solutions can help you.
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