“Both parties agree not to disclose or send communications to third parties, especially to the media, about this agreement.” That is the contract offer Cerberus makes to a tenant tied to one of the vulture fund’s subsidiaries. The pressure rises, and access to the newspaper becomes a tool in the playbook.
Beyond media silence, the offer also bars discussion of the contract’s terms with neighbors or relatives under the threat of a lawsuit for damages. The vulture fund demands complete secrecy and warns of possible legal consequences for any breach.
A vulture fund raises rent for 70-year-old retirees from 200 to 900 euros
Lawyers and activists confirm that such threats are a frequent tactic against affected families. They describe a calculated effort to intimidate and fracture solidarity among neighbors. A housing rights attorney at the El Rogle cooperative notes that the aim is to sow fear in residents’ minds and, crucially, to prevent the formation of mutual support networks among those affected who might pursue a shared claim. Preventing neighbors from talking about offers is part of the strategy, ensuring each case remains isolated and less powerful.
Maria Jose Alamar, a lawyer specializing in mutual funds at Aliter Abogados, explains that pressure and intimidation from vulture funds are common. “Clients face constant calls, letters, even visits in the evening,” she says, and advises always consulting a lawyer before engaging in any discussion related to these matters.
Another major challenge is the fund’s lack of a physical office or storefront. Interactions happen online via email or a phone number, and responses to affected parties are inconsistent. This makes public protests or at-the-door complaints much harder. Alamar also notes that this type of fund often prohibits sharing contract details with the press or neighbors, amplifying the sense of isolation for tenants.
“We will witness a significant social crisis at the end of 2023 and early 2024. Moratoriums are ending, and many families will face eviction.”
The Ministry of Housing has a draft law in progress to curb real estate harassment, with penalties that could reach up to 950,000 euros and even disqualification of responsible parties from public housing programs for years. The bill would address these issues on paper, though it has not yet been approved four months after its introduction.
Upcoming social drama
Narcisa Gómez, an activist with the Mortgage Affected Platform (PAH), works to negotiate with mutual funds on behalf of families and to advise those affected by vulture funds in Valencia’s suburbs. While she notes the practice of restricting tenant discussions, she emphasizes that organized resistance can still prevail. “The win rate is not high, but persistence wins in the end,” Gómez says. PAH is examining cases involving 240 families affected by a single large vulture fund.
Gómez also highlights cases of harassment against women in the neighborhood. “Some women are brought to tears by the pressure,” she says, adding that many middle-aged women have ended up prescribed antidepressants. The human cost is high, especially when children are involved.
The platform’s main concern is a looming social crisis. Gómez explains that many people arrange to vacate homes after foreclosure in exchange for debt relief, only to be offered a social lease on the same property by the bank. These social leases, signed in 2015 and expiring in 2022 and 2023, saw properties move from banks to mutual funds. In many cases, renewed contracts are refused or rents are increased by as much as 300%. “There are many families affected, and more will be affected if nothing changes,” Gómez warns.
Beyond social rentals, the moratorium for mortgage borrowers, approved by the government in 2012, allows many families to stay in their homes until May 2024, protected as vulnerable residents. Alamar cautions that these two issues could converge, warning that early 2024 may bring a pronounced social upheaval. “There is little time left,” she says. PAH’s spokesperson, José Luis González, asserts that the mortgage moratorium has already been extended multiple times and that protests will continue to press for another extension due to the ongoing vulnerability of many families. The exact number of families housed under this program in the Valencian Community remains unknown because official data has not been released.