Posts Tagged ‘Business’
Welcome to Part Two of our four-part Blog Series featuring the impending Loan Sales that are occurring with European Banks.
This series of blogs shares our knowledge and keeps our readers up to speed with the fast-developing market that covers foreign mortgages. This blog answers the question of ‘Why do banks sell on loan books?’ As Covid-19 restrictions ease, and life begins to resume, Banks are starting to face their issues. What they are faced with are a number of different aspects that are driving them to undertake loan sales which typically, they sell to what are called vulture funds.
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 needs to be recovered.
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, which in turn helps 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 a completely different animal 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 via the methods below:
Keep an eye out for Part 2 of our Loan Sales Blog Series to find out more!