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Post by angrykittens on Dec 8, 2017 12:52:16 GMT
Loan is now officially defaulted after no contact with the borrower. All items due to be sold at auction by February at the latest. This is now the first defaulted loan in my P2P investments  Guess we'll see how accurate the valuations are for the artwork... |
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Post by routlep on Dec 8, 2017 19:26:36 GMT
Agreed a test about how good the pawn broking side is......
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baldpate
Member of DD Central
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Post by baldpate on Jan 27, 2018 11:37:31 GMT
This loan repaid of 24th Jan - and lenders received a full recovery, so far as I can tell. However, in the "All active and past loans" list, it is showing as a 'Defaulted' loan, rather than a 'Recovered' loan. The 'Defaulted' status is usually reserved for loans that fail to make a full recovery. So either the status is wrong, or FS made good a loss without announcing the fact.
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adrian77
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Post by adrian77 on Jan 27, 2018 12:56:54 GMT
Credit to FS for getting a full recovery on this one and the NI Land- not so confident some of the property and boat loans will go the same way...
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mikes1531
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Post by mikes1531 on Jan 27, 2018 23:01:58 GMT
This loan repaid of 24th Jan - and lenders received a full recovery, so far as I can tell. However, in the "All active and past loans" list, it is showing as a 'Defaulted' loan, rather than a 'Recovered' loan. The 'Defaulted' status is usually reserved for loans that fail to make a full recovery. So either the status is wrong, or FS made good a loss without announcing the fact. In view of the update saying the security wouldn't be sold at auction until next month, I'd guess that one of two things happened... - The borrower appeared and repaid the loan in full; or
- FS decided to close out the loan themselves to stop interest continuing to accrue and take their chances that the result of the auctions would be sufficient proceeds to cover all that they paid out to investors.
My bet would be on the latter option. FS really wouldn't want the negative PR that would come from investors losing money on a pawn loan at a reasonably low LTV, especially as the low interest rate (10%) is supposed to mean a loan is lower-risk than other FS loans. This isn't a large loan, so the potential loss that FS might have to absorb probably is minimal, and they'd probably consider it a price well worth paying to avoid any potential negative PR.
I agree with baldpate that the currently reported loan status is not appropriate, and I'd guess that FS will correct it, especially if they add an update to the loan in the next few days.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,442
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Post by stub8535 on Jan 28, 2018 3:52:01 GMT
This loan repaid of 24th Jan - and lenders received a full recovery, so far as I can tell. However, in the "All active and past loans" list, it is showing as a 'Defaulted' loan, rather than a 'Recovered' loan. The 'Defaulted' status is usually reserved for loans that fail to make a full recovery. So either the status is wrong, or FS made good a loss without announcing the fact. In view of the update saying the security wouldn't be sold at auction until next month, I'd guess that one of two things happened... - The borrower appeared and repaid the loan in full; or
- FS decided to close out the loan themselves to stop interest continuing to accrue and take their chances that the result of the auctions would be sufficient proceeds to cover all that they paid out to investors.
My bet would be on the latter option. FS really wouldn't want the negative PR that would come from investors losing money on a pawn loan at a reasonably low LTV, especially as the low interest rate (10%) is supposed to mean a loan is lower-risk than other FS loans. This isn't a large loan, so the potential loss that FS might have to absorb probably is minimal, and they'd probably consider it a price well worth paying to avoid any potential negative PR.
I agree with baldpate that the currently reported loan status is not appropriate, and I'd guess that FS will correct it, especially if they add an update to the loan in the next few days.
Mikes1531 To suggest that FS care a jot about negative publicity, for whatever reason, is not borne out by past evidence. I do take your points though, any business that is trying to keep its source of capital sweet would want to avoid the embarrassments.
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Guess we'll see how accurate the valuations are for the artwork...
