mikes1531
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Post by mikes1531 on Apr 24, 2017 14:08:56 GMT
Not paying debt to FS lenders is like taking candy from a baby. You just ignore any calls from FS and you can forget you own any money. Isn't that the standard feature of pawn loans? That's where FS got their start. I've voiced my concerns and asked them for an urgent update. At the same time, I have already listed some loans for sale. I invested in this based on the cheery update, reassurance that LTV would not exceed 70 percent and that progress was going well. The update received from FS bears no relation to the site shown above, and come to think of it, do we know for sure that the timber actually has been paid for? I can't be lending on a platform where they just take the borrowers word, pass that on to us as fact and hand him £200,000, yet it looks like that is exactly what happened. I sincerely hope there is a good explanation for this and if there is, it needs to be explained right now. I don't know whether this may be true in for this loan, but on some other loans fundingsecure have stated that some of the further advances they've made on development loans have gone directly to the contractor(s). If we knew that was the case here, then we wouldn't have to worry about the concerns such as those expressed above "do we know for sure that the timber actually has been paid for?" Of course, we'd still have concerns over whether the project was progressing on schedule and within budget. ISTM that the biggest risk in a development project is having it stop mid-stream. I suspect it would be difficult to find someone willing to pay anything near the 'sunk' costs of a part-complete project.
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Post by sunburyjane on Apr 24, 2017 16:56:41 GMT
FS appear to have shown remarkable incompetence with their handling of this loan. They should have made a statement by now, rather than letting it drag on. I wonder how many other loans have been handled in a similar way? I think in the absence of any real information, then I shall be running my account down. I've got £1500 back so only another £23500 to go. Even using the SM it should only take a couple of years.
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phil
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Post by phil on Apr 24, 2017 18:01:39 GMT
FS appear to have shown remarkable incompetence with their handling of this loan. They should have made a statement by now, rather than letting it drag on. I wonder how many other loans have been handled in a similar way? I think in the absence of any real information, then I shall be running my account down. I've got £1500 back so only another £23500 to go. Even using the SM it should only take a couple of years. FSexit? Yes, I'm going to be a FSexiteer, we get the same amount of accountability here that we get from Brussels and both of the institutions earn their wages through us. I can hear the FSremoaners now, if I leave then life as I know it will cease to exist, I'll be jobless, homeless and financially wrecked, languishing in the pits of hell
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mikes1531
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Post by mikes1531 on Apr 24, 2017 18:07:51 GMT
I think in the absence of any real information, then I shall be running my account down. I've got £1500 back so only another £23500 to go. Even using the SM it should only take a couple of years. sunburyjane: I would have thought that you could get most of your money out of FS in five months or less via the SM, as it seems like all loan parts eligible for sale can be disposed of with only a reasonable discount. (Looking at the SM now, the maximum discount offered is 0.8%.) I accept that you can't exit completely until the last of your overdue loans is closed out. That should have been made clear at the time you invested, because it's always been like that. ISTM that anyone who expects that LPA receivers can be called in and security liquidated quickly is being rather overoptimistic. Perhaps FS -- and other P2P platforms -- need to make more of an effort to ensure their investors understand that.
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mikes1531
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Post by mikes1531 on Apr 24, 2017 18:11:55 GMT
I can hear the FSremoaners now, if I leave then life as I know it will cease to exist, I'll be jobless, homeless and financially wrecked, languishing in the pits of hell I really doubt those being left behind will lament any investor leaving FS. ISTM that they'll be more likely to be happy, as it reduces the competition they face when trying to obtain loan parts.
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Post by sunburyjane on Apr 24, 2017 18:19:19 GMT
I think in the absence of any real information, then I shall be running my account down. I've got £1500 back so only another £23500 to go. Even using the SM it should only take a couple of years. sunburyjane : I would have thought that you could get most of your money out of FS in five months or less via the SM, as it seems like all loan parts eligible for sale can be disposed of with only a reasonable discount. (Looking at the SM now, the maximum discount offered is 0.8%.) I accept that you can't exit completely until the last of your overdue loans is closed out. That should have been made clear at the time you invested, because it's always been like that. ISTM that anyone who expects that LPA receivers can be called in and security liquidated quickly is being rather overoptimistic. Perhaps FS -- and other P2P platforms -- need to make more of an effort to ensure their investors understand that. Unfortunately £8000+ is either overdue or less than 30 days to run. The remainder will be disposed of on the SM. It's the non SM loans that I expect to drag on.
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phil
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Post by phil on Apr 24, 2017 19:19:54 GMT
I can hear the FSremoaners now, if I leave then life as I know it will cease to exist, I'll be jobless, homeless and financially wrecked, languishing in the pits of hell I really doubt those being left behind will lament any investor leaving FS. ISTM that they'll be more likely to be happy, as it reduces the competition they face when trying to obtain loan parts. Well, I was joking but now you mention it.... You mean competition for those loans that have a maximum bid of a couple of hundred quid or less and go in five minutes flat? I've never wasted my time fast fingering with them (forgive the crudity). You certainly can't mean competition for those development loans ready for anyone to fill their boots that are languishing at the moment with a work backwards valuation Better for me sites such as Bridgecrowd, you can get shot of £5k in one go and relatively easy to do a bit of DD on the residential properties they offer plus interest is paid monthly.
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mikes1531
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Post by mikes1531 on Apr 24, 2017 21:07:56 GMT
Unfortunately £8000+ is either overdue or less than 30 days to run. The remainder will be disposed of on the SM. It's the non SM loans that I expect to drag on. sunburyjane: I understand, and wish you success with the winding up of your overdue loans and the maturity of your short-dated loans. It's probably no consolation, but I was pleased to receive an email from AC today... That loan was due Dec'15. Investors agreed to give the borrower a 3-month extension, but the borrower managed only two more payments. Last payment was Feb.'16, so over a year ago. The borrower was trying to sell the property, but eventually AC had to call in receivers. The end result wasn't quick, but the reported result was very good. We can hope FS will be as successful with their overdue loans. I have a number of those in my FS portfolio, so I have my finders crossed.
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elliotn
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Post by elliotn on Apr 25, 2017 0:59:02 GMT
I can hear the FSremoaners now, if I leave then life as I know it will cease to exist, I'll be jobless, homeless and financially wrecked, languishing in the pits of hell I really doubt those being left behind will lament any investor leaving FS. ISTM that they'll be more likely to be happy, as it reduces the competition they face when trying to obtain loan parts. Not too many loans are fff although I may miss him when trying to sell mine
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r1200gs
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Post by r1200gs on Apr 25, 2017 7:12:13 GMT
FS appear to have shown remarkable incompetence with their handling of this loan. They should have made a statement by now, rather than letting it drag on. I wonder how many other loans have been handled in a similar way? I think in the absence of any real information, then I shall be running my account down. I've got £1500 back so only another £23500 to go. Even using the SM it should only take a couple of years. I'm sure I wasn't the first one on to live help demanding to know what the hell is going on here, but you would think so by their reaction. Still no update. I too am withdrawing from the platform and will be beating myself up for some time to come. I invested in an £800,000 hole in the buildings in a run down Cumbrian town? Idiot. Of course, our borrower might just be having phone reception problems as happens in Cumbria, and will soon get hard at work now his legal battles are all over. Yea, he might.
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09dolphin
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Post by 09dolphin on Apr 25, 2017 10:13:49 GMT
At last an update!!!
Whilst I find the update reassuring, especially the proposed site visit and the further information provided, it shouldn't have taken so long IMHO.
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SteveT
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Post by SteveT on Apr 25, 2017 10:49:42 GMT
The update entirely fails to address the question of what evidence of current value the £200k 5th tranche was advanced against, given the documented guarantee that "At no stage will cumulative tranches exceed 70% of current value". If this one ends up going pear-shaped, there will be a strong argument for FS picking up the first £200k of any capital losses incurred.
(Also, why would the borrower's focus still be on his "pending legal case" if it was already "won in court on April 4", per the 10th April update)
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09dolphin
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Post by 09dolphin on Apr 25, 2017 11:21:15 GMT
A site visit will establish if the development is "on track" and if the photos provided are fraudulent and if further tranches should have be made available when the LTV will not exceed 70%. FS do assert a site visit will be made in the near future and then hopefully we'll be able to make an informed opinion. I agree that, as the legal case has been settled, we should be confident, assuming that it is not appealed - although I suspect it may be, if it's for multimillions I would guess it will be. Depends on the evidence.
Whilst I am reassured by the update, and I assume FS are taking the most positive view and that they are at least engaging with investors, which they haven't done recently and I see this as progress.
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sb
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Post by sb on Apr 25, 2017 11:56:42 GMT
Definitely an improvement on FS side but unfortunately no improvement on the borrower side. It looks like this loan is now a bet on the outcome of a lawsuit.
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r1200gs
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Post by r1200gs on Apr 25, 2017 12:14:24 GMT
Definitely an improvement on FS side but unfortunately no improvement on the borrower side. It looks like this loan is now a bet on the outcome of a lawsuit. Some reassurance certainly, but we were still sold a loan on false information and that matters. If this indeed does rest on the result of a legal battle and money being handed over, and that usually another battle after winning the judgment, then it could be a very long time indeed before we got this one paid back. It's a purely pragmatic move for me to cull my holdings in FS when I only have their word on what is going on, and that could be merely parroting the wishful thinking of the borrower. On the plus side, I discovered that the secondary market works pretty well.
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