Vulture fund rights!

S

Sarame1

New Member
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Basically my situation is that I bought my home in Spain (I'm full time resident) in 2005. I was on interest only for quite a few years so when it switched to repayment five years ago I knew I was going to be in trouble as my income dropped drastically due to brexit, a very bad relationship break up and i'd also developed Physical and some mental health issues (anxiety, depression and insomnia).

I approached the bank and asked them to help two months before the interest only period lapsed. I was given a life line by a 'new' bank manager. He offered me a deal that could work for both of us. Pay less now (with capital) and pay slightly more each year. I was really happy with this and was told to come back to sign the paperwork with the bank a week before I was due to finish the interest only period. So I did, only to be told by the now other new bank manager that they'd changed their minds. I was gobsmacked to say the least. I asked the new bank manager for help with my situation. Extend the mortgage term - nope! Longer interest only period whilst I sold my house - no! Anything, NO! I did pay what I could every month around half the amount €1000 but was told by my bank manager not to pay it as I was wasting my money and that they'll take the house anyway not only that the local lawyer confirmed it! So I took their advice.

Five years later I have discovered that my mortgage has been sold to a vulture fund. I only found out because I got a really ambiguous email asking me to contact them. I was scared so asked the local lawyer to call them who confirmed that it is a vulture fund that he deals with on a regular basis. He told me there and then (in an email) that they will accept €290.000 to settle the debt. However, my house is worth at least €400.000 although my debt is the same.

My problem and question is - is can I sell the house for more than the €290.000 to get the money to move out of the house and rent somewhere when it's sold? The local lawyer says no, that I can only sell it for what they are prepared to accept and not a penny more and also that they want to appoint the agent and set the price. I've tried to reason with the lawyer that I'm in a catch 22 situation as although their offer is reasonable bearing in mind they're going to make a killing themselves but I can't afford to move without making any extra money to cover the cost of moving as my work has come to a standstill.

Is it possible I can market my home for the lowest price for a quick sale? I am far from being greedy but can only just afford the basic living costs at the moment and have no idea how I can sell the property and leave with nowhere to go to! I don't really know which way to turn.
 
Sorry to hear of your troubles.

Is it a Spanish or Irish bank you are dealing with?

Have they informed you what you owe at present, is it €400,000?

You can't sell without their agreement. Is it the case that you've been living in the property for 5 years without paying anything at all?

Do you have any savings at all?
 
It’s a Spanish bank. No one has informed me from the vulture fund but I know the amount from my bank statement. I did pay off some of the capital but the interest has knocked it up again. At the advice of the BANK manager and the local lawyer I was advised to pay nothing as I was wasting my money as the end result would be the same. I've begged the bank almost weekly to step in and help but nothing. I’ve kept up to date with all other costs, community fees, ibi etc. no, no savings to speak of?
 
There is no point in looking at what is the value of your home when your debt is the same. In other words, the house is valued at €0 to you. The vulture fund has bought this debt off the bank for a discount and is willing to accept €290,000. Yes, they will make a profit off what they bought your debt for, but that is no concern of yours.

You have ended up in a situation where you have a debt that you can no longer pay back. The solution is the vulture fund will sell the property and the debt will go away. You won't get any excess money to start over but the stress and worry of the debt that has been hanging over you for so long will be gone.

I have every sympathy for you losing your home but it appears to be the only solution. The debt is only going to get bigger, not smaller.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
The bank don't own the debt anymore, the vulture fund do.

Vulture funds are the ones that will do a deal with debt, not the banks. You can see from your original post, they are willing to accept €290,000 for a €400,000 debt. Your bank wouldn't do anything for you so I don't know why you are asking them for help?
 
Thank you.. yes! You’re right.
 
You are starting badly by calling them a "vulture" fund.
They are investment funds are generally they have shown to be far easier to deal with than any bank.

So if you think of them as an investment house that are simply looking for a return on their investment you will approach it in a different manner which will give you a better chance of a positive outcome.

As this is an Irish site and property and mortgage is in Spain, it will be very difficult to get proper advice.

A good local solicitor who knows their way around these things will be the best option.
 
peemac said:
As this is an Irish site and property and mortgage is in Spain, it will be very difficult to get proper advice.
Click to expand...

Agreed. People here are making comments about their experience with Irish property and Irish lenders.

The practices could be very different in Spain.

Brendan
 
Sorry, that was before I found out that the VF had bought the debt on Monday.
Sarame1 said:
Thank you.. yes! You’re right.
Click to expand...
Brendan Burgess said:
Agreed. People here are making comments about their experience with Irish property and Irish lenders.

The practices could be very different in Spain.

Brendan
Click to expand...
They work on the same basis.
 
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