We were approached by a gentleman with two property shortfalls in Portugal.
Our client purchased the properties in the Algarve in 2008 with promised rental yields. These yields did not materialise and our client was having to find funds to top up the mortgage payments.
This was clearly unsustainable and our client fell into arrears. The respective lenders repossessed the properties and subsequently sold them.
The issue when a lender sells a property in possession is that they typically gain a maximum price of 70% of open market value. This obviously increases losses to all parties.
Our client’s lender was acquired by another Bank in Portugal who sold the asset and appointed a collection agent. The collection agent made contact and requested the shortfall of €228,088.
Our client initially appointed a Portuguese lawyer to deal with this shortfall. They proposed €50,000 payable over a 12 month period from our client. This was rejected.
Our expert team was appointed to take over the case. We withdrew all offers and advised of various factors, and through negotiations we achieved a full and final settlement of €27,500 – a saving of over €200,000.
Given our success, our client now intends to appoint us and negotiate his second Portuguese shortfall of €161,000, and we hope to resolve this quickly whilst achieving an excellent result.
For more examples of what we can achieve for you, read more of our case studies.
If you or anyone you know is suffering from a European Property Debt they cannot sustain please call us today on