Foreign Mortgage problems, negative equity, Vulture Funds and debt collection notices from foreign Banks across Europe

There are many different reasons why people decided to take out a mortgage through a foreign Bank when buying their foreign property. Favourable currency exchange rates, low foreign Bank lending rates and the ability to obtain high loan to value mortgages from foreign Banks are just a few of those perceived historical advantages.

Unfortunately, many of those people who took out a mortgage, later experienced problems making the required loan repayments, leaving them in direct conflict with their Bank and now facing the very real prospect of being pursued here in the UK for those outstanding mortgages.

Some of the reasons clients defaulted on their foreign property mortgage:

  • A change in personal circumstances; for example, the loss of a job or a reliance on rental income from the foreign property which never materialised, meaning property owners became unable to maintain their foreign mortgage.
  • Poor initial financial advice when investing in their overseas property,
  • Lack of sufficient information in relation to which currency the mortgage should be taken in.
  • Property developers going into bankruptcy and the property lying derelict.

In extreme cases, significant fluctuations in currency exchange rates caused foreign property owners to owe more to their foreign Bank than they originally borrowed. This is particularly relevant to Swiss Franc Mortgage problems in Cyprus

As a specialist and leading firm of solicitors in this area, we are acutely aware of the significant worry and anxiety of being contacted by a foreign Bank many years after believing the issue had gone away.

With decades of combined experience, we have been able to successfully negotiate and release our clients from over €40million of foreign property Bank debts, and with it, the removal of any threats to their future.

If you have received a legal notice from a foreign Bank or have concerns about a foreign property mortgage debt or would simply like more information on our fixed fee approach a member of our team will be happy to take your call on a confidential basis at 01438 840258 or via email to admin@judicaregroup.com

We can also arrange a free no obligation teleconference via Zoom/Skype.

Getting in touch will allow us to understand your individual circumstances and discuss with you your concerns and objectives. Working with you we can then decide upon the correct strategy to approach and find the solution which is right for you.

We provide tailored advice if you’re facing problems with a foreign mortgage arrears or if you are being pursued for a foreign mortgage debt in the UK.

FAQ’s

[faq]

Why choose Judicare for advice about overseas mortgage problems?

Below are just some of the reasons clients instruct us:

  • Our legal teams have decades of combined experience of handling foreign mortgage issues in numerous jurisdictions including (but not limited to) Spain, Cyprus, France & Portugal.
  • We are regulated by the Solicitors Regulation Authority (SRA) and as such we carry professional Indemnity Insurance giving you vital protections and redress in the unlikely scenario something goes wrong.
  • Using a Claims Management Company (CMC) or a so called “advisory firm” providing foreign property debt solutions across the EU can be risky, as there are no safeguards or any regulatory redress for clients if something goes wrong.
  • We’re members of the Association of International Property Professionals and devote ourselves to promoting principles of good practice within the international property industry.
  • We have successfully negotiated over £40million of foreign Bank debt being written off for our clients.

Need advice about a foreign mortgage problem?

For further information about mortgage problems abroad, get in touch with our friendly team by giving us a call or sending us an email today.

Foreign Mortgage problems, negative equity, Vulture Funds and debt collection notices from foreign Banks across Europe

Are you facing negative equity on your foreign property?

Negative equity is where the value of the property has fallen below the amount still outstanding on the mortgage. Despite this scenario, there are still many purchasers who wish to retain their foreign properties and as a result are happy to try and enter into a renegotiation with their foreign Bank to restructure the terms of a new loan. And as a result, to maintain the loan and their property - but under different financial conditions which are more manageable.

Many Banks across Europe have however in recent years decided to sell on their nonperforming mortgage books to so called Vulture Funds. These funds then aggressively pursue the mortgage debt seeking to recover the amounts. Companies such as Cerberus, Blackstone and Axactor to name a few of the entities now chasing clients in the UK.

What is a Vulture Fund?

A so-called Vulture Fund is an investment fund that will seek out and purchase securities in distressed investments. The objective thereafter for the Fund is to 'swoop in' and pick up under-priced assets at a fraction of the debt, with a view to collecting from debtors an increased percentage of the bad debts. This is particularly true within the European Banking sector in relation to non-performing property mortgages/ loans.

These funds then aggressively pursue the mortgage defaulters seeking to recover the amounts.  Companies like Cerberus, Blackstone and Axactor to name a few of the entities chasing clients in the UK.

Can you renegotiate my foreign mortgage?

The simple answer is yes. Renegotiation of the mortgage debt can however take various forms. It is possible to change the interest rate, to change the base currency and to achieve varying discounts due to any previous currency damage which may have been caused. It is also possible to negotiate interest free periods and/or even writing off lump sums from the mortgage.

Whatever you are looking for in your negotiation with your foreign Bank, whether this is in Spain, Cyprus, France, Portugal or in other jurisdictions, it is important that you take specialist and expert independent legal advice from a firm of solicitors when doing so. It is equally important for borrowers who are having problems with their foreign mortgages, and who are trying to negotiate personally with their foreign Bank, that the terms of any restructuring deal are reviewed by a lawyer prior to the new arrangement being signed off.

With a solid and proven track record, combined with decades of experience, we can talk you through your options as well as consider whether there is any potential legal action you can take, for example, if you’ve been mis sold the mortgage.

I am facing the possible repossession of my foreign property.

If you’re facing a possible repossession of your property abroad, stepping away from the issue may be more complicated than failing to engage with your foreign Bank. Many clients believed (mistakenly) that their foreign Bank would simply take the property and they could hand the keys back and walk away. Post Brexit, these clients have unfortunately been further mistaken into believing that a foreign Bank can no longer pursue them for monies owed.

What options do I have?

If you’re facing problems with your mortgage abroad, our specialist legal team can help you explore your options, including negotiating full and final settlements or variations to the mortgage with your foreign lender, taking steps to sell or rent out the property, and considering whether taking legal action (such as a mis selling or professional negligence claim) is viable.

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