michaelc
Member of DD Central
Posts: 4,788
Likes: 2,735
|
Post by michaelc on Sept 14, 2018 0:06:43 GMT
After seeing some possible green shoots recently I feel FS are utterly back to square one with this complete rubbish. Foreclose now please.
8 hours ago The receiver has been working with the borrower in an effort to complete refinancing to repay our loan - which would be the preferable exit. Although a new lender has agreed to refinance there would be an unacceptable shortfall. The borrower has confirmed he has an overseas project that would potentially cover the shortfall. If proof of funds are not available in the immediate future the receiver has suggested they push for a consensual sale which would result in the maximum recovery. In line with their suggestion we have served another formal demand. A further update will be made once the receiver has confirmed the status of the funds.
28/07/2018 Although a further payment has been made it still does not bring the loan up-to-date. We are waiting for independent proof of the refinancing, failing which additional steps will be taken by the receiver to formally recover the debt.
05/07/2018 We have received an update from the receiver - confirming further payments will be forthcoming from the borrower - who is still progressing with alternative funding. All the while the borrower continues to pay down the interest due, the receiver recommends allowing additional time for the refinance to be arranged.
18/06/2018 As previously reported the borrower continues to work towards refinancing - and has committed to paying additional funds to offset part of the interest due. We are continuing to work with the receiver in the meantime and will update as additional information is available.
25/05/2018 Three things are happening in parallel: Borrower has paid part of the interest due and has committed to continual payments Borrower is progressingwith alternative financing Receiver is working with valuer and agent to market the property. Further updates will be made as soon as information is available.
09/05/2018 Borrower is continuing to obtain refinancing - but in the meantime the LPA receiver is proceeding
17/04/2018 As we have not been able to get confirmation from the borrower, or directly from the new lender, of timing for the refinance we have today instructed our receivers. An update will be provided once the receivers have provided their initial report. Naturally, if the borrower does complete the refinancing and send the owed funds we would still be able to remove the receiver but we believe this is the best course of action currently, to focus the borrower's attention on the debt.
23/03/2018 The borrower had expected to complete refinancing to repay the loan, but the process is taking longer than expected. We have requested confirmation from the new lender the timeframe to complete the process. Once this is confirmed a further update will be added.
|
|
james21
Member of DD Central
Posts: 651
Likes: 669
|
Post by james21 on Sept 14, 2018 7:38:01 GMT
The key point throughout and is the case in so many FS loans ""Although a new lender has agreed to refinance there would be an unacceptable shortfall"". This can apply with all refinance loans default or not. Because the FS LTV's are so high (one reason borrowers go to FS) and you add on interest a refinance that the borrow wants on a lower % cant be found so if they refinance they cant pay off the loan and interest, so the can gets kicked down the road until a new idea or excuse come up to delay even further. In the case of this loan FS should have dealt with it long ago instead of being fobbed off by the borrower, the updates are a joke
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Sept 14, 2018 9:43:30 GMT
What I cant understand is why FS play tootsie with these delinquents...like the Reading fiasco, FS seem content to accept and publish a load of worthless twaddle that even Dianne Abbott would be hard pressed to come up with. 5 months of the receivers involvement and we're no further forward with more to come and the debt growing by the day. The borrowers credibility has long gone, the loan is long overdue and FS is being led along by the nose..again. Ive got 6 numbers that potentially will win the lottery next Saturday. Gain some respect in the market place FS..chop this bloke off at the ankles and start getting plum mad dog mean with all these wastrels
|
|
aj
Member of DD Central
Posts: 342
Likes: 451
|
Post by aj on Sept 14, 2018 10:36:10 GMT
On the flipside, it looks like the loan is not yet very late (by FS standards) and the borrower is making interest payments, showing commitment to the loan.
It would be good practice for FS to let borrowers know the amounts of interest paid up. (EDIT: Best practice would be to pay these amounts on to the lenders and subtract them from the interest accrued) This would give lenders visibility on whether the situation has been improving or worsening.
Regardless, marketing the property for sale at a realistic price is the obvious next step.
|
|
adrian77
Member of DD Central
Posts: 3,894
Likes: 4,122
|
Post by adrian77 on Sept 14, 2018 10:47:16 GMT
Not sure how I missed this one for my FA league!
FS lent how much as a second charge! (over 0.5m)
I like the gardens but I really don't like the house it looks to me as if an existing house has been extended at least twice and the work does not look £1m house quality to me. I don't like the proportions , I think it is lop-sided, I don't like the varying window styles, I really don't like the dormer which seems to have had extra flashing which indicates a present or past damp problem. Just my opinion as is that there seems far nicer and more desirable houses in the same street which cost vastly less.
If the first charge holder has not been paid then he is going to take a massive chunk of the monies realised. If he has been paid then he won't care about FS so if FS default it they will have all the legal work etc to pay for safe in the knowledge the first £270K realised will go straight to the original lender.
No idea what this would sell for but if it was one of my investment properties I don't think I would pay anything over £500K.
Will do a bit more research when I get time but my instinct (not always right) is that we could be looking at a 50% loss here...whatever this one is not pretty
I thank you.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Sept 14, 2018 11:20:00 GMT
The loan should have finished 10/02/18..and even allowing for FS's valuations, I believe that when this loan approached its intended expiry date there was more than enough headroom to cover both 1st & 2nd charges. 2 months then elapse before FS 'instruct' their receiver and call the borrowers bluff (to focus the borrower's attention on the debt ) which clearly failed ! Another 5 months have now lapsed and other than the debt increasing, FS serve a 2nd formal demand. So what progress has been made in 7 months other than the borrower continues to renege on his contract and stall due process yet further and the subsequent risk to lenders has increased. Calling some ones bluff is fine as long as you act decisively when it backfires. If not, any shred of credibility goes out the window.
|
|
rs
Member of DD Central
Posts: 467
Likes: 254
|
Post by rs on Sept 14, 2018 12:10:53 GMT
I read the recent 4th way article about FS and it said penalty interest is paid if loan is overdue. Maybe this is why FS are happy for loans to be overdue as FS get penalty interest but lenders get a haircut.
|
|
adrian77
Member of DD Central
Posts: 3,894
Likes: 4,122
|
Post by adrian77 on Sept 14, 2018 13:53:04 GMT
is this right - to be fair to FS I thought it was paid out of a capital surplus which I really can't see here?
|
|
mjc
Member of DD Central
Posts: 342
Likes: 425
|
Post by mjc on Sept 15, 2018 0:50:05 GMT
is this right - to be fair to FS I thought it was paid out of a capital suprlus which I really can't see here? “ In perhaps the most significant contrast with FundingSecure, HNW Lending bravely takes big steps to chase late and bad debts very rapidly. Why is HNW Lending being brave? Because in reacting quickly to late loans, HNW Lending is admitting to lenders that a loan is not working out as hoped – at least at the moment. Yet is excellent to see that HNW Lending is not put it off from doing the right thing just because some lenders might panic about it. It is the opposite to what FundingSecure appears to be doing.Especially with loans of this kind, the more quickly you move to take steps to put the borrower back on track or to recover bad debts, the more likely you are to get your money back, and to get it in a reasonable period of time. HNW Lending typically initiates legal steps to recover debts within three to four weeks of a loan falling late and usually this is sufficient to kick the borrower to pay up. If a borrower is unable to meet repayments and interest on time, HNW Lending ultimately collects a much higher penalty interest.” (4thWay)www.4thway.co.uk/candid-opinion/hnw-lending-produces-the-goods/www.4thway.co.uk/candid-opinion/fundingsecure-good-or-bad/
|
|
adrian77
Member of DD Central
Posts: 3,894
Likes: 4,122
|
Post by adrian77 on Sept 15, 2018 9:59:35 GMT
Just a general point following on from above- Mark Carney has said a 35% fall in house prices is possible due to Brexit. Personally I think this is "project fear" although I do think there is, at least, going to be a major slowdown in house sales as Brexit looms. For long term borrowers even a short-term correction is not a problem but personally I am staying clear of most if not all FS property loans until the dust has settled. Also I think the ratio of mortgages to income is far too high especially in London The below is from an interesting article www.economicshelp.org/blog/5568/housing/uk-house-price-affordability/As the article says there are other factors pushing up house prices but I am concerned that once interest rates start to rise whether due to Brexit or not there will be a major correction especially in the South. I think if JC gets elected then all bets are off, there will be a run on the Pound, interest rates will shoot up, the wealthy will immediately transfer their money overseas, rent controls will mean that landlords such as myself will sell up and take a loss if need be and property prices will fall in the short term until mega-inflation takes hold. ..I will take retirement in one of my overseas properties in the Costa del Burnley. However I am concerned that now is not a good time to invest in short-term pawn property loans - just my opinion.
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on Sept 15, 2018 10:16:57 GMT
Just a general point following on from above- Mark Carney has said a 35% fall in house prices is possible due to Brexit. Personally I think this is "project fear" although I do think there is, at least, going to be a major slowdown in house sales as Brexit looms. For long term borrowers even a short-term correction is not a problem but personally I am staying clear of most if not all FS property loans until the dust has settled. Also I think the ratio of mortgages to income is far too high especially in London The below is from an interesting article www.economicshelp.org/blog/5568/housing/uk-house-price-affordability/As the article says there are other factors pushing up house prices but I am concerned that once interest rates start to rise whether due to Brexit or not there will be a major correction especially in the South. I think if JC gets elected then all bets are off, there will be a run on the Pound, interest rates will shoot up, the wealthy will immediately transfer their money overseas, rent controls will mean that landlords such as myself will sell up and take a loss if need be and property prices will fall in the short term until mega-inflation takes hold. ..I will take retirement in one of my overseas properties in the Costa del Burnley. However I am concerned that now is not a good time to invest in short-term pawn property loans - just my opinion. "think if JC gets elected then all bets are off, there will be a run on the Pound"
I think there is more chance of the real JC comming back and saving the world than Mini JC saving the UK and I'm a real God
|
|
michaelc
Member of DD Central
Posts: 4,788
Likes: 2,735
|
Post by michaelc on Sept 15, 2018 12:07:03 GMT
I think if JC gets elected then all bets are off, there will be a run on the Pound, interest rates will shoot up, the wealthy will immediately transfer their money overseas, rent controls will mean that landlords such as myself will sell up and take a loss if need be and property prices will fall in the short term until mega-inflation takes hold. ..I will take retirement in one of my overseas properties in the Costa del Burnley. Probably but the farce of the rail and gas/electric "market" would end. It might be possible to send children to nurseries without paying 1.2k per month per child (unless you are the kind of family who is work shy and can sit at home producing more kids or you are well off and above like most of us). Armed forces and general world stage poncing around by our top officials might reduce. Plus JC is, unlike most politicians (left and right) principled and I think quite a nice guy (the current pressures have clearly taken a bit of a toll). There'd be a run on the pound whatever Labour did so really that doesn't seem to me an argument against in itself. I'm not an economist of any kind but not sure how much b2l landlords add to an economy? On the down side I'd be paying a lot more in tax, the state in general would increase too much and the economy would take a hit at least in the immediate term. For those reasons I wouldn't vote for them. Not sure I like TM either. Understandably JC gets a lot of bashing on this board and so I wanted to put my no doubt very unpopular views (folk who know me would say "off piste" views) which aren't quite so black and white.
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on Sept 15, 2018 14:40:48 GMT
I think if JC gets elected then all bets are off, there will be a run on the Pound, interest rates will shoot up, the wealthy will immediately transfer their money overseas, rent controls will mean that landlords such as myself will sell up and take a loss if need be and property prices will fall in the short term until mega-inflation takes hold. ..I will take retirement in one of my overseas properties in the Costa del Burnley. Probably but the farce of the rail and gas/electric "market" would end. It might be possible to send children to nurseries without paying 1.2k per month per child (unless you are the kind of family who is work shy and can sit at home producing more kids or you are well off and above like most of us). Armed forces and general world stage poncing around by our top officials might reduce. Plus JC is, unlike most politicians (left and right) principled and I think quite a nice guy (the current pressures have clearly taken a bit of a toll). There'd be a run on the pound whatever Labour did so really that doesn't seem to me an argument against in itself. I'm not an economist of any kind but not sure how much b2l landlords add to an economy? On the down side I'd be paying a lot more in tax, the state in general would increase too much and the economy would take a hit at least in the immediate term. For those reasons I wouldn't vote for them. Not sure I like TM either. Understandably JC gets a lot of bashing on this board and so I wanted to put my no doubt very unpopular views (folk who know me would say "off piste" views) which aren't quite so black and white. If you want to pay more tax come live in Scotland. 19%, 20%, 21% or 40% Take your pick. Also lower pay before thay kick in. On the plus side. You can still buy a flat under 10K linkor 15 Bedroom 25 acre house for price of a 3 bedroom house in Peckham linkYou get free Prescriptions. You get free country wide bus pass age 60 (You can even get to Carlisle) You get free personal care. Only 169 people per square Mile . England 1023/Square mile More likely to get cold weather payment It only rains twice a week. once for 3 days and once for 4 days.
|
|
adrian77
Member of DD Central
Posts: 3,894
Likes: 4,122
|
Post by adrian77 on Sept 15, 2018 15:11:24 GMT
wow - can't believe how cheap these flats are - I hope they are all saved as they represent Glasgow's heritage. However I noticed a 2 bed park home for sale at £7,800 which seems cheap compared when we look at ref 3032435320 where we have a loan of £165K for 2 (£82.5K each) with a loan of £330K - I don't think these homes will end up sited in Montreuse! In fact £330K will buy 42 such homes... interesting!
|
|
michaelc
Member of DD Central
Posts: 4,788
Likes: 2,735
|
Post by michaelc on Sept 15, 2018 15:44:50 GMT
If you want to pay more tax come live in Scotland. 19%, 20%, 21% or 40% Take your pick. Also lower pay before thay kick in. On the plus side. You can still buy a flat under 10K linkor 15 Bedroom 25 acre house for price of a 3 bedroom house in Peckham link
Sounds like less tax to pay than in the UK if it only goes up to 40% ? And that castle is incredible. Almost worth living there for.....
|
|