Estateguru’s risk team recovered €490k worth of Estonian defaulted loans per month in 2023, delivering an average monthly interest rate of 10.13% over the whole loan period. In this blog, we’ll take a closer look at our recovery process in the Estonian market, and some of the specific cases.
Estateguru has an excellent track record of recovering defaulted loans, thanks to the fact that every loan we facilitate is backed by a mortgage on real estate. Due to our long market presence, understanding and professional network, this is especially true in Estonia. In 2023, Estateguru’s risk team recovered €490k worth of Estonian defaulted loans per month, delivering an average interest rate of 10.13% over the whole loan period.
Our debt collection process in Estonia has been refined over the course of a decade, and our inhouse legal team has an equally long history of working with local security agents to rapidly navigate Estonian legal requirements and expedite recoveries. After termination of the loan contract, we can apply to the bailiff to immediately start the enforcement process (while providing a mandatory 30 days’ notice for the debtor to voluntarily fulfil the debt). After this period the bailiff can initiate the sales process of the property at auction.
We control the valuation of the collateral real estate, which consequently remains stable during the enforcement process, as is reflected in the consistently excellent returns, which have not dropped below the full principal and an average yearly return of over 10%.
For a full list of Estonian recoveries in 2023, and a detailed look at some specific cases, scroll through our gallery below. Or, if you want more information about Estateguru’s recovery process in different markets, click here.