Post by mullet on Apr 17, 2018 8:00:04 GMT
What does it actually mean if a loan is underwritten?
My understanding is the underwriter would guarantee payment in the event of default. In the case of the Rolex Daytona Watch (1313403574) which has now defaulted the last update from FS says the watch will now be sold. So do we need to wait until it has sold and then the underwriter will pay the difference if the full value is not recovered?
Also, what is actually being underwritten - is it the value of the loan, the loan + 6 months interest, the loan + interest until it finally gets closed down, or something else?
One final observation - the text regarding the underwriting of the Landrover Defender (2745291647) doesn't sound too convincing
Due to the unusual nature of the vehicle we have taken the unusual step of "underwriting" the loan in the event of a default.
Specifically - if the loan were to default we have a committed buyer who would purchase the vehicle at a price equal to the capital plus 6 months interest.
Why is "underwriting" in inverted commas? The 2nd sentence makes it sound more like a man in a pub has committed to buy this rather than a proper underwriter.
My understanding is the underwriter would guarantee payment in the event of default. In the case of the Rolex Daytona Watch (1313403574) which has now defaulted the last update from FS says the watch will now be sold. So do we need to wait until it has sold and then the underwriter will pay the difference if the full value is not recovered?
Also, what is actually being underwritten - is it the value of the loan, the loan + 6 months interest, the loan + interest until it finally gets closed down, or something else?
One final observation - the text regarding the underwriting of the Landrover Defender (2745291647) doesn't sound too convincing
Due to the unusual nature of the vehicle we have taken the unusual step of "underwriting" the loan in the event of a default.
Specifically - if the loan were to default we have a committed buyer who would purchase the vehicle at a price equal to the capital plus 6 months interest.
Why is "underwriting" in inverted commas? The 2nd sentence makes it sound more like a man in a pub has committed to buy this rather than a proper underwriter.