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Helping People With Foreign Property Debt & Negative Equity.


Posts Tagged ‘Swiss Franc Mortgage’

Our Trip to Larnaca, Cyprus

Welcome to our latest blog! Today we’re focusing on our recent trip to Larnaca in Cyprus.

Are you one of the unfortunate souls who prior to 2008 took out a Swiss Franc or interest-only mortgage to purchase your dream holiday home in Larnaca, Cyprus?

If you can resonate with the above, you are not alone.

There are countless others in your situation, still struggling to pay off their mortgages abroad on their foreign homes. You see, a lot of these types of mortgages were created pre-2008, while the market was still booming.

The banks thought this ‘moneygoround’ would never stop. Oh, how wrong they were!

Cyprus’s entry into the EU caused a lot of problems for Cypriot banks as they were overexposed to:

  • Greek government debt.
  • Local property companies.
  • Overleveraged property ventures.

As Cyprus is such a small country, they were taken advantage of in every way possible leading to some pretty unethical banking practices, with many clients became burdened with these terribly designed mortgages. This meant that the Cypriot economy plummeted to levels that it STILL has not shown any significant recovery from. 

At EU Property Solutions we have spent well over a decade now helping people like you pick up the pieces from the fallout of the 2008 crisis. As part of our fight against the big banks, we went over to Larnaca, Cyprus to take a look at some of the developments there.

During our time in Cyprus, we checked out developments such as:

  • Golden Hills
  • Pelagos Breeze
  • Paramount Gardens
  • Regal Gardens

You can see some pictures from our trip below.

Golden Hills and Pelagos Breeze Larnaca Cyprus

If you have any unwanted property in these developments please get in touch! Thanks to our close relationships with many European banks, EU Property Solutions are well equipped to offer guidance and support to you during this difficult time. Just check out some of our client testimonials on our YouTube channel for some of our success stories.

For more information on our background and how we operate you can download our free e-book here. You can also check out our blog, which we frequently update with the latest news related to the EU property market.

Our Trip to Paphos, Cyprus

This blog focuses on our recent trip to Paphos, Cyprus.

The year is 2021, well over 10 years since many of you reading this would have bought a holiday home in Cyprus.

Who would have thought that we would still be picking up the pieces from the 2008 recession? Who would have thought that we would be about to head into yet another global financial crisis in 2021?

(Thanks a bunch COVID-19!) So who in their right mind would have thought that such poor-quality loans designed to mislead the consumer could have had such long-lasting implications?

As part of our efforts to hold the banks accountable for their role in the 2008 foreign property crisis, we recently went on a trip to Paphos, Cyprus to take a look at some of the developments there.

During our visit, we paid a visit to:

  • Aphrodite Hills
  • Thalassa View Gardens
  • Coral Bay

You can check out the photos from our trip below.

Pathos, Cyprus, Aphrodite Hills and Thalassa View Gardens

If you are having a hard time trying to sell your property or pay off your foreign mortgage at Aphrodite Hills or Thalassa View Gardens please get in touch.

Many ex-pats in your position have tried to hold the banks accountable for this disaster. However, they haven’t had much luck. Unfortunately, Cypriot courts don’t seem to have too much sympathy.

Luckily for you, EU Property Solutions has regular contact with banks across Europe and has built strong relationships over the years.

This means that we are in a strong position to assist you in resolving these issues. Believe it or not, those working at the banks are people too. In many cases, they are happy to listen to reason.

We have helped hundreds of people in your position, you can take a look at our YouTube channel to hear testimonials from many of our satisfied clients.

For more information on our background and how we operate, you can download our free e-book here. You can also check out our blog, which we frequently update with the latest news related to the EU property market.

Together we can hold the big banks accountable.

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.