Posts Tagged ‘Debt’

Interview with former Cypriot Client: Mike Fredriksen

Michael is a previous Cypriot Client of EU Property Solutions that we reached a very successful settlement for. He featured as a guest on our latest webinar ‘Cypriot Mortgage Issues: Downward Spiral’ where he answered some questions regarding the issues he was facing with his property in Cyprus and his life now without the burden of foreign property debt.

Welcome Michael & thanks for joining us today, tell me a little bit about your Cypriot property experience and when did you know it was time to seek help?

I purchased my property in 2005 and from day one I saw the Developers and the Bank in a different light. Despite much communication between all stakeholders, it became clear there was no future with the property. After constant re-mortgaging, involvement with communities that were all in the same boat, and taking advice from Barristers; we knew there was no light at the end of the tunnel. It wasn’t until my wife came across EU Property Solutions and we engaged with you that the rest became history.

Did you find contacting the Developers & the Bank difficult?

They did play ball to start with but as soon as money had changed hands, we were treated like second-class citizens with regards to any plans or attempts to try and improve the situation. We found that the Bank was very rude, ignorant and they pushed us to the limit. The developers shrugged their shoulders and said, “You decided to buy in Cyprus, it’s your problem.” It was a problem, a big problem but the Bank and the Developers didn’t seem to care too much.

At that time, where you living out in Cyprus or traveling to and from the UK?

I was working and living in my property in Cyprus from 2005- 2010. These problems didn’t come to a head until we left the property. We moved back to the UK in 2013 with my job. We were grateful to have had the delight of living in our property in Cyprus and then renting the property out. But when we came back to the UK in 2013, that’s when things really took their toll.

After reaching out to EU Property Solutions, what was it about our company that made you and your wife feel like this is the route that you wanted to go down?

Right from the start really, I had an initial telephone call with a really nice chap who made us feel at ease. There was no pressure or sales pitch. He allowed us and permitted us to contact other people who were successful with EU Property Solutions. We thought are we going to be scammed again by another company because everyone we have dealt with previously just wanted to take our money with no interest in what we wanted to achieve. From day one we felt at ease with EU Property Solutions and the staffing, the staff work and the communication between EU property Solutions and ourselves was enough for us to commit to them looking after our case.

That’s a very interesting point you made about feeling like you were going to be scammed. At EU Property Solutions, that is a huge barrier that we come across with our clients because one of the main reasons that our clients are in their situation is because they have been wronged from the very beginning. So that is why we always try to put them in the right direction by speaking with our other clients who we have reached a settlement for who were in the same situation as yourself. Did you avail of that service?

Yes absolutely, I spoke to a couple of Spanish clients that you had in very similar situations. I hope I can be of value to anybody now, being an owner who invested in Cyprus and having gone through the process, I am more than happy to help anybody else in the same situation as ourselves.

In terms of your journey with us, after appointing our services, did you feel like our team was helpful?

Yes, my case manager was really on the ball. The biggest thing for me was being able to pass my problems on to her. I didn’t want to communicate with the Developers or the Bank while I was going through this process. EU Property Solutions took full ownership of my problems for the whole period while fighting my case. One of the big thing I found, was having the opportunity to forget about all the issues that were surrounding; knowing that it was being managed in good hands.

A lot of people think that even though they appoint our services, they think that they have to be in correspondence with the lender and the developer, but that all stops when you come on with us. It takes you away from that situation and our legal team deal with it. Once you knew we achieved a settlement, how did you and your family feel?

It was a bittersweet feeling for my wife and I. We invested a lot of money into the property, and we were gutted it went down the drain. But we have now got no more trouble and a heavyweight has been lifted off our shoulders. We can move on forward with our lives and not feel threatened by Cypriot authorities. It was a Bittersweet feeling but a huge moment of celebration!

What would you say to people who have found themselves in a similar situation to what you experienced?

I would say across the board, it doesn’t matter who you are whether you are a serious investor in properties; there are people who fall foul to the Cypriot Scam. Hold your head up high, there is light at the end of the tunnel. It doesn’t matter how much debt you are in or how many properties you have; if you want to get out of it there is help available.

Chat to a member of our team today. Our initial consultations are free and we can quickly help clients with Cypriot property debt.

You can watch the full video interview here: https://youtu.be/RCr7irb-hIU?t=823

0044 330 124 1230

[email protected]

Spanish Property Repossession…HELP!

Spanish Property Repossession is an incredibly slow process but once the Banks start the process, it becomes unrelenting.

The Spanish Courts are awash with Property issues including Repossession and Deposit Reclaim hearings and the Actions can take years. Nonetheless, if you are in arrears with mortgage payments – your property can and will ultimately be repossessed. The costs involved in such Bank Actions, for which you will be responsible can be horrendous.

EU Property Solutions encourage borrowers to engage with lenders through a third party before repossession occurs, as this is when the best results can be achieved for borrowers and the lender. Nonetheless, should Spanish Property Repossession occur or have already happened we can help. See our case study below.

This brief blog sees us share what we are seeing in the subject of Spanish Property Repossessions, most notably:

  1. UK Debt Collection Agencies (DCA’s) are being used frequently and are becoming more prominent in their approach.
  2. Most borrowers with a Spanish property issue have an asset position in the UK, e.g. home and investments. These will be at risk if the DCA and/or look to enforce the debt owed.
  3. Many Banks currently looking to secure Orders Charging Land on clients’ UK assets to secure their debt position.
  4. Vulture Funds are increasingly buying non-performing loans from Spanish Banks. These funds want full repayment and are extremely aggressive in their approach. They are far more efficient in debt collection than Spanish Banks using Insolvency action against borrowers. THIS IS AN INCREASINGLY WORRYING TREND HERE.

If repossession has occurred and you are being pursued for outstanding debt, it is essential to act now and to engage with the relevant collection agent.

EU Property Solutions understand how collection agents work and how Banks operate, working with them on a daily basis.

A recent example of a Spanish Property Repossession case, EU Property Solutions settled with a core Spanish lender saw:

  • Our client owned a property in Estepona, Costa Del Sol.
  • Following a period of financial difficulty, our client fell behind on her mortgage payments.
  • Our clients’ property was repossessed and she received a letter from a UK Solicitors firm acting on behalf of the Spanish lender. They requested a full repayment of the £90,000 shortfall debt.
  • The clients’ non-engagement with the Bank saw costs rise considerably. The Bank ultimately secured a Charge on her UK home.
  • EU Property Solutions were appointed and within 6 months achieved a settlement. We achieved the settlement for £18,000 including; costs on a Full and Final Basis and the charge removed from her home.
  • The home is now safe and savings of c£72,000 achieved.

If your Spanish Property is subject to repossession or has been repossessed, call EU Property Solutions, it’s not too late – but make sure you call us today.

Phone: +44 330 124 1230

Email: [email protected]

We are the ONLY dedicated advisors who cover this subject in this way and with our confidence and knowledge, we felt compelled to write this short book for borrowers out there who are struggling with a foreign mortgage. Click here to read the full eBook!

Spanish Property Issues

Are you in Negative Equity and do not understand the meaning?

Sort out your Spanish property issues today! In simple terms; Negative Equity occurs when the current loan or mortgage balance secured on a property is higher than the current market value of the property. Subsequently, some borrowers refer to them as Negative Mortgages.

For example, if a borrower’s current mortgage balance is €150,000; but a recent comparable property may have sold for €100,000 (before selling costs of c8-10%)…this borrower is in Negative Equity and faces a mortgage shortfall of €50,000+.

Such Spanish property issues/shortfalls are due and payable in full as and when the property is sold or disposed of.

EU Property Solutions have had contact with and helped many hundreds of people who purchased in Spain and across Europe at the height of the crazily inflated market, pre-2008.

These couples and individuals took out huge mortgages which were too readily available. These scenarios in turn later left the majority of mortgage holders in some form of financial difficulty. Leaving them exposed to an asset with falling value.

Many who still own a property in Negative Equity feel trapped. They are unable to move on, being dubbed ‘mortgage prisoners’ or ‘Stuck in the Sun’.

Furthermore, EU Property Solutions are experts in Spanish Mortgage Law; assisting borrowers who still suffer from a Negative Equity loan.  We and our hand-picked legal teams work with all lenders across Spain. We can tailor our services based on your circumstances and lender.

A recent example saw us settle a Negative Equity position on a proposed sale of c€120,000 for £25,000 including costs. Genuine telephone testimonials are available to support our work.

Borrowers often bury their head in the sand. They face the very real risk of Spanish mortgage default or Spanish mortgage repossession. These scenarios can be life-changing and will expose your UK Assets and Income.

Dealing with the situation and acting now is key. EU Property Solutions legal team in Spain is ready to assist.

Don’t be a mortgage prisoner – let us find you a way out of this predicament.

Call EU Property Solutions today on 0330 124 1230.

Spanish Banks chasing debt in the UK

Spanish Banks chasing debt in the UK

Since the financial crisis in 2008, Spain has seen well over a quarter of a million properties repossessed. A staggering figure! Spanish Banks chasing debt in the UK has increased.

A large proportion of these repossessions are foreign-owned properties.

EU Property Solutions find it incredible so many British and Irish borrowers feel they can merely “hand back the keys” and walk away from the property thinking they are somehow immune to any consequences once back home.

Many borrowers post their keys through a Bank or representing solicitors’ letterbox not fully aware of the consequences.

These debtors have the impression that Spanish creditors cannot pursue their home country assets. They also think that the Banks haven’t got the time or resources to pursue overseas.

Anyone who signs a mortgage deed in Spain, including guarantors, is personally liable for the loan.

Any legal action will likely be notified to the Spanish Address on which the mortgage has been placed.

Many overseas borrowers in Ireland and the UK will be unaware of any proceedings against them until the process is gathering apace.

In terms of debt perusal in the UK or Ireland, lenders can look to recover your home assets. Many lenders will appoint UK Debt Collection agents leading to an effect on your credit report.

The Spanish lender can look to put a charge on your property even if it already has an existing mortgage and can enforce an Attachment of Earnings Order.

Spanish lenders seem to be developing a greater appetite for overseas debt perusal.

EU Property Solutions can assist anyone in this situation so please contact the team today on 0330 1241230 to arrange a free initial consultation.

Can a foreign debt be collected in the UK?

Recently we have seen a large increase in enquiries from people who have mortgages overseas, specifically in Cyprus and Spain asking the question of “Can a foreign debt be collected in the UK?”. Many are concerned with some loan sales now being undertaken by Banks across Europe, as the Banks at last look to clear all problematic debt and tidy up their ‘books.’

Such problematic debt cases include:

  • Those in arrears, be it one month or multiple months behind on mortgage payments.
  • Unaffordable repayments brought about as mortgage products moved from interest-only to Capital repayment.
  • Negative Equity on Property.

Many people think merely ignoring a foreign mortgage debt problem will see it go away. Yes – a lot of time has elapsed since the 2008 crash but like elephants, these Banks do not forget! 

Banks are still relatively civil in most instances providing there is engagement in some form, but across the board – their patience is wearing thin. They are employing the following approaches to close troublesome mortgage accounts, to name but a few:

  1. Applying for European Enforcement Orders,
  2. Appointing strong legal firms to enforce in the UK,
  3. Making their own enquiries as the people’s worth/assets, and
  4. Most worryingly for our clients, the sale of loans to Vulture Funds…the name should be a clue as to how they conduct themselves…not so civil!

Foreign Banks in the main are still approachable. As ever it’s a case of the right type of engagement, usually undertaken by a trusted party.

You need someone like EU Property Solutions because:

  • You need someone trusted by the Banks. They appreciate straight-talking and know we perform on cases. We only act for the client but know the different parameters that each and every Bank works within.
  • Sometimes Banks are not fully truthful. EU Property Solutions cut through and call out any discrepancies from any financial institution.
  • Even though we are looking to alleviate the problem here, Banks and their advisors need to be driven.

Some people believe that this ability to chase foreign debt in the UK, as provided for under Cross Border Claims EC 44/2001, will diminish with Brexit.

We do not see this happening as the EU will still be our main trading partner and such provisions ensure safer trade conditions for all.

Under law, anyone, including Bank’s and any other foreign trading entity can secure a Judgement in their country and then bring this to the UK and apply for a European Enforcement Order.

This Order when granted, and they usually are, enables the creditor to pursue clients here in the UK, which can, in turn, see UK assets such as homes, businesses and in some instance’s pensions, come under threat.

The legal costs in such recovery actions can be horrific and payable by the debtor as well.

As ever we use the mantra of #KnowtheWorstAchievetheBest.

Definitive advice is imperative. Relying on uninformed opinions is no good for those facing this sort of situation. Relying on ‘bar room’ legal opinions is dangerous – especially when these opinions that may suit your arguments, are wrong.

In conclusion, if you face foreign mortgage problems, get the best advice you can. If it goes wrong, then you will be pursued at some time. Do not ignore the issues, seek out professional help to know your options.

Webinar Feedback – Mark Stucklin

Webinar

Terry Bell Presenting EU Property Solutions Webinar

Welcome to today’s blog on Webinar Feedback – Mark Stucklin. As you may be aware we held our first-ever live webinar on the 27th May 2020 on Spanish & Cypriot Property Debt. If you happened to attend, we would love to hear your thoughts on it, send them over to us on [email protected]

If you are interested in watching the live webinar over again, you can do so here: https://youtu.be/E4aRc_l8Oz8 

We had a great blog write-up from Property Market expert Mark Stucklin who discusses our webinar below.

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The economic crisis building as a result of the coronavirus pandemic will leave some people with mortgages in Spain in financial distress, through no fault of their own.

If this happens to you, it is advisable to seek help from independent experts on how to handle the situation.

Last week I attended my first webinar (online seminar, for those that don’t know), held by Terry Bell, speaking on behalf of Bell & Co. in the UK and Ireland, and EU Property Solutions in Spain and Cyprus.

These companies specialise in helping people with business and personal debt find negotiated solutions to their financial problems.

Terry’s presentation about the typical financial problems borrowers from the UK and Ireland run into with mortgages in Spain and Cyprus was an eye-opener.

For instance, there are still many people struggling with mortgages taken on in the boom years before 2008. They are not getting any younger.

Terry explained that the “demographic” of people with mortgage problems in Spain means that time is not on their side. They need to sort out this problem before it’s too late.

There are many people in arrears on their mortgage payments who think they can walk away from their foreign debts. They think the problem won’t catch up with them back home. That is wishful thinking, even for those who did this years ago.

Slowly slowly, Spanish mortgage debts are being worked through. Debtors are pursued back home on the basis of EU directives, increasingly by vulture funds who have bought the debt.

The worst thing you can do is stick your head in the sand and hope the problem will go away. It won’t.

The best thing you can do is contact third-party experts like EU Property Solutions, who have dealt with many cases like yours, and know what to do to get the best solution for you.

Experience is key to negotiating the best terms in this complicated situation. This is probably something you have never had to deal with before. And every lender in Spain has a different approach to dealing with what they refer to as ‘delinquent debt’. Only experience of dealing with many cases helps you decide the right strategy.

Terry talked about all the problems facing borrowers in Spain and Cyprus. There’s one brutal problem in Cyprus – that we can be grateful few borrowers in Spain are having to deal with:

  • Namely the Swiss Franc mortgages that were so gaily mis-sold to borrowers in Cyprus back in the boom years.

Since then, the value of property in Cyprus has plummeted:

  • Whilst the Swiss Franc has appreciated, crushing borrowers financially in a vice of negative equity.

Mercifully, most borrowers in Spain have euro mortgages, but some of them will still be in negative equity more than a decade after they purchased.

And now we have a new wave of financial problems to look forward to, thanks to the coronavirus crisis.

If you find yourself in financial distress, and unable to cope with your mortgage in Spain, don’t stick your head in the sand, get in touch with EU Property Solutions.

Will I be receiving no rental income in 2020?

Following the UK confirming that those returning from overseas travel will have to Self-isolate for 14 days, the Spanish Government has followed suit imposing the same restrictions. With this in mind, the question is – will you be receiving no rental income in 2020?

This year’s Summer Holiday season may well and truly be cancelled. 

If you are reliant on rental income to support:

  • Your mortgage payments,
  • IBI taxes, and
  • Community Fees on your Spanish Second Home –

The above will see you face increasing pressure to top-up payments from your home income.

Speaking with a local Costa Del Sol Agent:

  • It was confirmed that many Second Home Owners will take on long term rentals but given supply, these rental agreements will be very low in income.

Furthermore, many will be left without employment & may fall behind on their rent.

Second Home headaches are stressful enough in more positive times, but in these trying circumstances, they can be a real burden.

EU Property Solutions can end this burden in an effective manner without the need to travel to Spain.

We can help so your not asking yourself if you will be receiving no rental income in 2020?

Especially if the mortgage is greater than the true market price and the associated selling costs…which can be as much as 12%.

EU Property Solutions have options and plans for every eventuality, ensuring we protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.

WE HAVE THE SOLUTIONS TO DEAL WITH SPANISH PROPERTY DEBT ISSUES.

Get rid of Overseas Property – Without Visiting Spain.

CORONAVIRUS – NO TRAVEL, NO PROBLEM – WE HAVE THE SOLUTION FOR YOU.

The world continues to be an uncertain place. In the UK the Government has announced its stepped plan to restore normality in the midst of Coronavirus – travel restrictions. We can help you get rid of your overseas property – without visiting Spain.

One thing that has hit the headlines is a 2-week self-isolation for those returning from abroad, bar France.

This is clearly detrimental for those looking to get rid of property overseas, especially during this period. No one wants to self-isolate for 2 weeks having been on lockdown for some time.

EU Property Solutions legal process allows you to get rid of your overseas property without visiting Spain. Here is how:

  1. You swear a Power of Attorney allowing our Legal Team in Spain to represent you and sign documentation in the country on your behalf. This is arguably the most you will travel – to a local notary to have this document sworn.
  2. We will arrange access for a Lender Valuation. Just give us the keys or tell us your keyholder’s details.
  3. We will communicate with the Lender on your behalf. Including any face to face requirements.
  4. We will sign the Legal Paperwork and conclude the case on your behalf.

Trust is key in this process. Trust us to do right by you and we need to trust you will cooperate to get the desired conclusion.

If your Spanish property is detrimental, especially now during this pandemic ~ respond. Allow EU Property Solutions to resolve the matter on your behalf from the safety of your home.

EU Property Solutions have options and plans for every eventuality. We ensure we will protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.

WE HAVE THE SOLUTIONS TO HELP YOU DEAL WITH GETTING RID OF YOUR PROPERTY – WITHOUT VISITING SPAIN. 

Call us TODAY on 0330 124 1230 or email [email protected]

Spanish Holiday Home Values to Decline

Spanish Holiday Home Values to Decline

Uncertainty and the markets do not go well together, the Spanish Property market & Spanish holiday homes are no different.

NOBODY, BUT NO ONE KNOWS what is going to happen in the coming months because of Coronavirus.

For sure Spanish Property prices will decline – the extent of this drop is unknown. Spanish Property Expert, Mark Stucklin, completed a survey recently for his website which you can find on www.spanishpropertyinsight.com to get feedback as to how Covid-19 would affect Spanish Property Prices.  because and or so how together and are there

Key points relating to Spanish holiday homes:

  • 57% of respondents think house prices will reduce a lot (greater than 10%),
  • 37% of respondents think house prices will reduce a little (up to 10%), and
  • 6% of respondents think there will be no impact on house prices.

Yet another potential house price collapse, this will be alarming to borrowers as many are already self-declared “Mortgage Prisoners” in other words, with mortgage balances greater than their property value.

There are ways through this, and EU Property Solutions’ legal process can help avoid a protracted sale and the associated sales costs.  It is key to respond.

So, if you have:
1. Negative equity,
2. Falling rentals,
3. Lender issues,
4. Interest-only problems, or
5. Anything that relates to your property in terms of its problematic disposal….

CALL EU PROPERTY SOLUTIONS TODAY!

EU Property Solutions have options and plans for every individual case as we ensure to protect you, your income, your home, pensions, and other assets – from any potential legal threat.

SEE BELOW A TESTIMONIAL FROM A VERY HAPPY & RELIEVED CLIENT.

WE HAVE THE SOLUTIONS TO DEAL WITH SPANISH PROPERTY DEBT ISSUES AND ALLEVIATE YOUR FOREIGN PROPERTY DEBT.

CORONAVIRUS – SELLING IN LOCKDOWN

Uncertainty of the pandemic continues around the world as Economies reel because of Coronavirus and imposed lockdowns essential to Public Safety.

Undoubtedly property markets suffer in periods of uncertainty.

2nd homeowners with property in Spain will be considering selling at this stage. Factors include no rental income for Peak season, declining values imminent and currently an inability to visit the property.

Selling property during a pandemic comes with its difficulties:

  1. The property could be in Negative Equity i.e. the outstanding mortgage is greater than the property value. With prices set to decline again, more borrowers will find themselves in this scenario.
  2. Costs of sale in Spain can be 10-12% of the sales price. Vendors must factor this into their calculations.
  3. The property must be “priced to sell”. There is a massive supply of 2nd home properties across the Spanish Costas and being realistic is essential.
  4. Demand for 2nd homes will undoubtedly fall in this period and for the rest of the year as confidence is hit.
  5. Lending restrictions imposed last year reduced the buyer pool, we await Banks’ response to this crisis and how their criteria will change again.

If you want to sell and cannot EU Property Solutions can assist. Our legal process avoids the Sales Process and associated costs.

As Mark Stucklin said last week:

“If you find yourself in financial distress as a non-resident or second-home owner due to this crisis you may see yourself miss your Spanish mortgage repayments.

You need to get hold of the situation quickly and start talking to your lender about the options.

If you feel you need professional help from experts who know how to negotiate with banks and get you the best outcome, get in touch with financial distress and negative equity experts EU Property Solutions to discuss your case.”

EU Property Solutions have options and plans for every eventuality, ensuring we protect you, your income, your home, pensions and other assets – from any potential or ensuing legal threat.

Spanish Mortgage Relief – Mark Stucklin

We recently had a great write-up from Mark Stucklin – a Barcelona-based Spanish property market analyst, and author of the ‘Spanish Property Doctor’ column in the Sunday Times (2005 – 2008) on the Coronavirus Crisis and the downhill effect.

Spanish mortgage relief for borrowers falling victim to the coronavirus crash.

I’ve had enquiries about the mortgage repayment moratorium that the Spanish Government introduced for people struggling with mortgages due to coronavirus.

The scope of the moratorium is understandably limited to residents struggling to pay the mortgage on their main home.

Non-resident and holiday-home owners don’t qualify for relief, but anyone in those groups now struggling to pay a mortgage in Spain will find some advice at the bottom of this article.

The mortgage repayment relief was approved by royal decree in March as part of economic measures worth 200 billion Euros.

The first thing to note is that this moratorium only applies to residents of Spain so ones struggling with their main home.

Don’t expect any relief if you can’t pay the mortgage on your holiday home:

  • because tourist rental bookings have collapsed, or
  • you lost your job back home.

If that’s your situation, skip to the bottom of the article and receive some advice.

Borrowers who qualify for relief can apply for a temporary and interest-free mortgage repayment holiday or deferment.

An application can be submitted up to 15 days or so after the decree has expired.

Some sources report this deadline for applications as currently standing on the 3rd of May.

Spanish mortgage moratorium requirements

  • Borrowers who can demonstrate they have lost their job or seen their income slashed by 40% or more
  • Family income in the month prior to requesting mortgage payment relief was no higher than three times the IPREM household income reference point,
  • Mortgage repayment plus expenses and monthly utility costs greater than or equal to 35% of net household income.
  • Mortgage repayments as a percentage of household income have increased by at least 1.3 as a result of the Coronavirus.

You have to apply for this mortgage relief with your lender providing:

  • Proof of unemployment and business distress,
  • Your Family Book to accredit household members and dependents,
  • Homeownership documents including the nota simple land registry filing,
  • Deeds of sale and mortgage deeds, and
  • A debtor’s declaration of responsibility in compliance with the requirements of this decree

Non-resident and second-home owners in financial distress

If you find yourself in financial distress as a non-resident or second-home owner due to this crisis you may see yourself miss your Spanish mortgage repayments.

You need to get hold of the situation quickly and start talking to your lender about the options.

If you feel you need professional help from experts who know how to negotiate with banks and get you the best outcome, get in touch with financial distress and negative equity experts EU Property Solutions to discuss your case.

Cypriot Vulture Funds

Since the start of 2020, we have seen a spike in enquiries, particularly from those with problematic Cypriot mortgages due to Cypriot Vulture Funds.

It has been common knowledge for some time now, but the Cypriot & Greek Banks have been lining up the sale of their NPL loan books for a while.

A recent article in the excellent ‘Cyprus Property News’ https://www.news.cyprus-property-buyers.com/, confirms a €4 billion sale by two players in the mortgage market. This will develop as the Banks look to ‘tidy up’ their loan books STILL reeling from the 2008/9 crash.

With any Foreign mortgage, trying to decipher what is truly going on, is difficult. Sometimes the teams within the Banks don’t even know, so why should you.

This niche area needs serious negotiators with strong knowledgeable legal representation on the ground in the country in question. EU Property Solutions has the complete package here – right across Europe.

Getting the right advice, from afar is difficult at best….impossible in most instances.

NPL’s can arise from any Banking covenant failure that may arise. Typically, these Banking covenant failures can arise from:

  • Mortgages with arrears on them,
  • Title and Deeds issues,
  • Swiss Franc mortgages,
  • The loan being greater than the value i.e. Negative Equity, and

Loans that revert from Interest Only to Repayment.

The issues above continue to plague mortgage holders and with over 60,000 British and Irish mortgage holders in Cyprus alone, these problems are not going away any time soon.

EU Property Solutions only ever act for the client and despite offers, would never act for banks.

That said, we recognize that the Banks of today are in an invidious position as they try to move on. They face the task of trying to unravel the awful loans written by less than scrupulous Banks and Brokers back in the day.

At best, the Banks are in zombie mode with all the pressure to bear from Bank of Cyprus, IMF etc, requiring them to sort these issues, but not providing them with the resources such as a Land Registry system that works.

EU Property Solutions and their sister company Bell & Company www.bellcomp.co.uk have over the past 10 years come across many, many debt purchasers such as the debt purchasers listed below.

The comments above are not in any way malicious about the teams in these Vulture Funds, but realistic. The teams within Vulture Funds have a job to do…and do it they will. Vulture Funds buy distressed debt/NPL’s from struggling financial institutions but get all the rights of the debt at their outstanding value i.e. the loan amount plus all costs and interest.

They are not long-term holders of this type of debt and look merely to maximize their return on the loan book and each and every loan in it.

What does this mean to those under such pressure, knowing a Vulture Fund now owns your mortgage?

  1. If you have a problematic debt with them, they will look to resolve it from their angle a soon as possible,
  2. This includes litigation in Cyprus and in the U.K. and Ireland,
  3. Their due diligence process will be far more stringent than the Banks to date when determining assets and liabilities,
  4. They will work on the premise that if a client is deemed to have sufficient assets to cover their debt…they will look to maximise their recovery from these,
  5. These include property assets including your home, pensions, cash in the bank, investments, etc and

Any other actions they see fit to maximise the return on their loan purchase.

HOW TO AVOID THE WRATH AND FURY OF VULTURE FUNDS….

Active engagement is vital, but, be aware Vulture Funds are far more clinical in their approach. There are no friendly chats here. They will hang on your every word; unlike previous conversations, you may have had with the Banks and their debt collection teams in Cyprus.

Third-Party Representation in such cases, where Vulture Funds now own your mortgage, is absolutely vital.

Vulture Funds are very effective in their work – which could possibly put mortgage holders at serious risk with UK assets.

Our mantra in our sister company – Bell & Company is always #KnowtheWorstAchievetheBest and it is so relevant with the Vulture Funds now buying up NPL’s in Cyprus

FINAL COMMENT – DOING NOTHING IS NOT AN OPTION HERE.