Noticias de la Cámara

Vulture Funds Explained | EU Property Solutions

11/04/2022 eu_property_logo

In the aftermath of the 2008 crash, the terms ‘loan sale’ and ‘Vulture fund’ were commonly heard across the world of property. As time has passed, they have become less common but, they have never gone away. Unfortunately, they are now back and on the rise.

In Spain, property owners are struggling to pay their mortgages as a result of COVID-19, Brexit and rising living costs. Vulture funds are taking advantage of this situation to buy up ‘bad debt’ and aggressively pursue unlucky borrowers. We are hearing more and more property owners asking us: “What are vulture funds and what do they mean for me?”.

In this article, we answer some of the most common questions about loan sales and vulture funds and offer some solutions for anyone who has fallen victim to these funds.

Can the Bank Sell my Loan?

Ultimately, lenders can sell any loans as they wish and, unfortunately, your lender does not need your permission. This is usually in the small print of your mortgage agreement.

The first you may know of a loan sale may be the first correspondence from the Vulture Fund. The Vulture Fund will write to inform you that your lender has sold your loan. This can occur years after you last spoke with your lender.

What does it mean for my holiday home mortgage?

Although it may have been several years since you last spoke with your lender, Vulture Funds can act quickly and in the immediate term you can expect:

  • More aggressive pursual tactics – Vulture Funds use more aggressive techniques to harass borrowers, this will include threatening letters, calls, emails and texts.
  • Your UK assets at risk, especially with 2nd charges on UK homes – lenders can work across jurisdictions, this puts your UK assets e.g. your home at risk.
  • Rising costs – As your case goes on, the Vulture Fund will add additional costs, legal fees, and compound interest

Can I Ignore Vulture Funds?

If you ignore a Vulture Fund, you can expect them to become less receptive to offers down the line. The situation will also have progressed, making it harder to halt legal action & negotiate with your best interests in mind and finally, they will become more likely to chase you across jurisdictions.

Can Vulture Funds Chase me in the UK?

The simple answer: Yes.

Legal notification will be sent to your 2nd address in Europe. The Vulture Fund may contact you in the UK but this is not guaranteed. As a result of this, many overseas borrowers are unaware of proceedings against them until the process is gathering pace. In terms of debt pursuit in the UK or Ireland, lenders will look to recover your home assets.

On top of this, many lenders will appoint UK Debt Collection agents leading to an effect on your credit report.

What can you do?

You have two options at this stage:

1. Ignore the issue and hope that it disappears: You will face rising costs, additional interest, an increasingly aggressive Vulture Fund, your assets in the UK will be at risk and your chances of ever finding a resolution are low.

2. Speak to an expert, reach a settlement, and leave it all behind you: These funds can be difficult to deal with so it is important that you speak with people who understand how they work and how to deal with them. Ignoring the issue will only make things worse in the long term.

Call us today on 0330 124 1230 or email us at We can provide solutions for any foreign property issues. Don’t believe us? Click here to hear from some of the people we have achieved life-changing settlements for.

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