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Why Are Loan Sales Happening In Europe?

5 January 20232 min readby Tom Miskelly

Cyprus Loan Sales Other Countries Property Debt Spain Vulture Funds

In previous blogs, we have looked at what loan sales and vulture funds are. But you are probably wondering why do they actually happen?

In short, Banks are starting to face their issues. Banks are currently faced with a number of different aspects that are driving loan sales. This typically sees them selling debts of unsuspecting property owners to these vulture funds.

Many factors push banks to sell debts. However, the main points as to why Banks are selling these loans are:

1.) They are getting a lot of pressure from their Central Banks, such as the Bank of Spain, which is directing them as to how they must conduct themselves.

2.) There is still a lot of legacy debt left over from the 2008 Financial Crash, which banks need to recover.

3.) The banks want to free up funds on capital because, very often, this is not the best debt they can carry on their books. Loan sales, in turn, help them tidy up their balance sheets, and they can also get on with what they are supposed to do, which is be a bank in their own country for their own people.

EU Property Solutions have seen a huge increase in enquiries from people who are sent threatening letters from foreign banks. We advise those in this situation to take action immediately, especially if there is a negative equity property involved.

Banks don’t give notice as to when they are looking at a loan sale. They can be brutal in their attack, and they are far more aggressive in their approach. If they are going to come after you – they will come after you; they will look to get their pound of flesh.

Vulture Funds are completely different animals. Therefore they have a completely different agenda, they are far more aggressive in their approach.

Furthermore, if you have contemplated resolving a Negative Equity issue, wherever it may be, then get in contact with our specialist team today.

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