Is your property abroad putting you in serious financial difficulty?
Is your ‘home in the sun’ having serious implications on your current financial situation, causing stress or worse, impacting on your health and quality of life?
To revisit an earlier blog we published, the fact is, many people who purchased in Spain and across other parts of Europe at the height of the property boom are STILLin serious financial difficulty. This is because the majority of these foreign property owners are experiencing serious increases in mortgage repayment costs due to changes in interest rates and mortgage terms and feeling trapped to sell as they face the prospect of their home being in negative equity.
Read: Are We in Negative Equity? https://eupropertysolutions.com/negative-equity-what-can-we-do/
It may seem like an easy option at the time, but missing mortgage repayments and ignoring the problems you are facing with your foreign property is something you may want to avoid if possible. The reason for this is because many European Banks are beginning to become more proactive in the debt collection. With some having sold their loan books to vulture funds, these lenders are now aggressively pursuing outstanding debt back on home soil.
Why are foreign lenders being so aggressive?
Banks are now enlisting specialist legal firms across Europe to help them recover their debt, these firms are acting aggressively on their behalf. It is also important to note that Loans can be sold on in any country, so the original lender you took out a mortgage with quite possibly may have sold their loan book to a vulture fund. Vulture funds are aggressive in nature and are increasingly taking action by litigation on owners of ‘distressed debts’. In this case, you should have been alerted if the debt has been sold on, but due to borrowers having multiple addresses in different countries and some operations of these funds, you may not have been notified.
With this insight, it is important to understand that if you’re finding it difficult to manage your foreign property and keep up with repayments, or are trying to sell a property in negative equity and cannot afford the mortgage shortfall it is essential to seek advice. The sooner you seek advice the better as there are always options no matter the situation.
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If you are experiencing financial difficulty due to a foreign property or fear of being chased for unaffordable debt, it’s important you seek specialist advice. We at EU Property Solutions are experts in problematic foreign property and specialise solely in this area. With a wealth of knowledge and expertise, ranging from complex legal matters to property debt negotiations, you can be assured that we will be able to shine a light on your issues and direct you in the best way forward.
Read our case studies to find out more information on similar situations or contact us today to discuss your own situation.