If you are struggling to pay or have stopped paying your foreign mortgage, you may be burying your head in the sand as you probably don’t want to speak to your lender. However, they will want to speak to you.
European Banks are slow therefore, it can be years or even decades before you receive contact from your foreign bank/lender. Once the correspondence begins, they will gather pace at an alarming rate. If you have received a letter from a bank and/or solicitor, it is important that you understand the risks and potential outcomes.
Why have you received a letter?
As mentioned above, it might have been a significant amount of time since you have heard from your original lender. In fact, you may believe that you will face no consequences as a result of this time gap.
European Banks can be slow to start proceedings, but they will look to recover their money. A letter is a standard part of the recovery process, which indicates that the lender is intent on recovering the money they are owed.
If the letter isn’t from the original lender
Quite often, European lenders will employ a legal firm in your home country to collect a debt. These firms usually have a dedicated debt recovery department and are therefore more efficient at recovering debts. Some of the most common debt collection agencies in the UK are:
- Pepper
- Buckles
- E&G Solicitors
It is a very likely scenario that your mortgage has been passed on to a third party. This could be a collection agency or, it could have been bought by companies known as vulture funds. These companies purchase debt from banks and employ aggressive collection techniques to recover money.
What to expect after you receive a letter
Generally, once recovery action has begun, you can expect contact to become more frequent and threatening. This is done to incite fear and panic you into paying the debt, as well as additional costs and penalties.
Lenders and vulture funds can and will pursue you in both the country of purchase and in your home country. This will leave your personal assets and finances at risk.
Learn more about how Spanish banks recover money and how Cypriot banks recover money.
Your options
Despite the threatening nature of letters, emails and phone calls, do not panic, but don’t ignore the issue altogether either, burying your head in the sand will not solve the problem. Ultimately, if left without action, the issue will only get worse over time.
EU Property Solutions are experts in dealing with European lenders, Solicitors and Vulture Funds. This understanding is how we achieve the most favourable settlements for our clients.
The team at EU Property Solutions are always on hand to give you the help and advice you need. If you have received a letter that you would like some advice on, please call us on 0330 124 1230 or email [email protected] for more information.
As mentioned above, it can be a long time before you receive communication from your lender. No matter how long it has been, you can be certain that your debt has not been forgotten. Even if you have not heard from your lender, it is better to do something now. The sooner you face the issue, the better the outcome.
No. Letters and communications from lenders are always designed to scare you into paying. It may be tempting to contact the lender yourself to try and explain your situation. However, depending on what you say, this could do more harm than good.
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers, and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or call our office and speak to a team member. You can even chat with previous clients of ours over the phone!
