When you invest in an Estateguru project, you do so knowing that we have a well defined and effective recovery process, and that in the case of defaults, we won’t stop working until we have done everything possible to maximise your returns. Today, we are glad to announce that all investors in project #4051 have received their money back.
The recovery process in regards to this particular loan is ongoing, as the borrower continues to dispute proceedings, but we are confident we can recover additional funds in time. As always, we will continue to seek the optimal outcome for our investors, but we wanted to provide some details at this point.
Loan Recovery Details and Recovery Amount:
Loan Project Number: #4051
- Total Amount Recovered thus far (more expected): €518 377
- Principal of Repayment Amount: €400 000
- Default Realisation Fees: €20 000
- Indemnities, penalties to investors: €98 377
- Loan Default Date: 18.01.2022
- Loan Recovery Date: 4.8.2023
Estateguru’s recovery process and statistics:
At Estateguru, all of our loans are backed by a first-rank mortgage, so that in the event of a default, our investors are the first to be reimbursed from the funds raised when the collateral property is auctioned. This means that when a default occurs, it does not necessarily mean that our investors will lose money, in fact, far from it; Estateguru has recovered €32,495,185 from defaulted loans, with our users still earning returns of
8.57% on average. The average recovery period is just over 12 months. Now let’s take a look at the specifics of the case under review.
Loan #4051 – Finland Recovery Process Overview:
Starting in 2021, the borrower was unable to repay the loan interest according to the repayment schedule. When payments were over 90 days late, we moved to default the loan project. Initially, the borrower seemed willing to cooperate in finding a solution, but it emerged in time that the voluntary sale of the collateral was not going to happen, and so we initiated the legal processes that marked the beginning of enforcement proceedings.
Although the borrower has sought to delay the process by disputing our demands at every juncture, the court recognised that our claims were legally binding and watertight and reached a decision in our favour in 2023. The case was subsequently handed over to the bailiff, who began the auction process in the beginning of May. By the end of the month, we had received multiple bids exceeding our claim by several hundreds of thousands of euros.
The borrower, however, continued to delay the process, disputing the auction despite the court order. The case was finally settled on the 4th of August, and we subsequently received the first payment from the bailiff.
It’s been a long process and it remains ongoing. The borrower continues to dispute proceedings and consequently, partial sales proceedings currently remain on the bailiffs account. We remain committed to ensuring the optimal outcome for our investors and we hope to receive additional funds in time. We will keep you notified as the situation develops.
Read more about other recoveries from our blog.
