GeorgeT
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Post by GeorgeT on Oct 13, 2018 21:39:11 GMT
I can't recall coming across someone who considered it a misfortune not to be in a defaulted loan before. It takes allsorts I guess. But seriously, the recovery was good but all reasonable efforts should be made to reclaim all monies owed and I'll be interested to see how much progress can be made on thims loan and the hotel loan too. I understand what you are saying and I would never choose to invest in a loan that was going to default. However in this particular case had I invested at the launch of the loan and earned my 12% interest for a number of months and then got a 96.4% capital recovery I think the maths would show that I had done better with my money then had I put it in the bank earning perhaps 1% at best. So if you look at it in those terms with the benefit of hindsight then yes I think this would have been a good loan to have been in. The above is due to the excellent work of MT who do seem to be good at managing defaults and recovering investors funds. I know the Birkenhead loan was the exception but DFLs are accidents waiting to happen when the loan is based on a hypothetical, future, completed, gross development value and should always pay more interest than loans based on existing asset values, but other than that the track record is good on MT. I am invested in the first Plymouth loan which is the one which has run into some temporary difficulty what with plumbing sabotage etc - Always a default risk and another reason why assets that are the subject of defaulted loans always sell for low values - but I am still hopeful of a reasonable return on my capital there in the new year.
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GeorgeT
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Post by GeorgeT on Oct 13, 2018 21:53:09 GMT
This whole issue of valuation and loan to value ratio is all a bit of a red herring because every single time a loan defaults and the asset has to be sold, it is a completely different asset to the one that was valued at some point in the past (sometimes on a future hypothetical basis) - for all sorts of reasons. And that is precisely how an asset should be valued, because that's what it's worth in case of default. Unfortunately the initial premise appears to be "value as if all will go to plan" If the valuers were instructed to value on the basis that the asset was the subject of a defaulted loan and would need to be sold as a distressed asset with unknown claims and damage/diminution in value, in a quick period of time and probably shoved in an auction in a fire sale scenario etc, and the LTV was a maximum of 70% of THAT value then I don't think you could reasonably expect much more than 5% or 6% interest on your investment. Because the risk of you losing any of your capital would be extremely low indeed. I doubt many investors would invest at 5% and the only reason P2P platforms like this have been able to survive and prosper has been because of the double figure interest rates that have been able to be headlined.
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Post by queenvictoria on Oct 14, 2018 6:43:25 GMT
And that is precisely how an asset should be valued, because that's what it's worth in case of default. Unfortunately the initial premise appears to be "value as if all will go to plan" If the valuers were instructed to value on the basis that the asset was the subject of a defaulted loan and would need to be sold as a distressed asset with unknown claims and damage/diminution in value, in a quick period of time and probably shoved in an auction in a fire sale scenario etc, and the LTV was a maximum of 70% of THAT value then I don't think you could reasonably expect much more than 5% or 6% interest on your investment. Because the risk of you losing any of your capital would be extremely low indeed. I doubt many investors would invest at 5% and the only reason P2P platforms like this have been able to survive and prosper has been because of the double figure interest rates that have been able to be headlined. But I would rather that the valuation presented to be realistic (a la your description) and then the LTV be raised to show the level of risk that would earn the higher levels of return. 50% LTV on £1m asset vs 100% LTV on £500k asset? The first one may be easier to sell to an unwitting investor but the second might more properly reflect the actual investment.
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Post by westcountry on Apr 2, 2019 11:14:55 GMT
MoneyThing, the last update for this loan on the MT website was nearly six months ago. Please could we have an update on how efforts to recover the outstanding capital & interest are progressing?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 10, 2019 14:06:45 GMT
Holding update on site
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djpix99
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Post by djpix99 on May 24, 2019 14:44:43 GMT
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keystone
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Post by keystone on Oct 14, 2020 9:30:08 GMT
MoneyThing According to your website this loan (now MTASR2960) has now reached its end date two days ago on 12/10/2020, can we have an update? Was the Trustee in Bankruptcy appointed, have they made any progress in recovering from personal assets in the last year? Are you expecting an increase in the pace of results? Is there anything meaningful to report?
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keystone
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Post by keystone on Oct 14, 2020 23:43:04 GMT
...and the end date that never was has mysteriously been extended by 6 months to 12/04/2021. Remember a Calendar is not just for Christmas!
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