tomtom
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Post by tomtom on Jan 3, 2017 9:08:53 GMT
I have been looking at the valuation report on this loan by Coram James part copied below and fail to see how this report can be used as a valuation for this loan as you can clearly see that they gives no guarantee of the any kind. Am I missing something?
"CJ/001688/RCJ CORAM JAMES LIMITED 20162
TERMS & CONDITIONS
We have appraised the whole of the aforegoing
at open market values making a total
sum of £300,000.00(THREE HUNDRED THOUSAND POUNDS ONLY) .Coram JamesLimited gives no guarantee in the Valuation in respect of an object’s origin, provenance,attribution, condition, date, age or authenticity. Any statement as to authorship, attribution, origin, date,age, provenance and condition is a statement of opinion and is not to be taken as a statement or representation of fact
Why would I want to invest in this loan?
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fp
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Post by fp on Jan 3, 2017 10:00:12 GMT
NO valuation gives a guarantee of value.
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Post by charliebrown on Jan 6, 2017 12:13:29 GMT
NO valuation gives a guarantee of value. Agree. Show me a valuation that gives a guarantee and I'm in for everything I've got 
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oldgrumpy
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Post by oldgrumpy on Jan 6, 2017 12:23:10 GMT
NO valuation gives a guarantee of value. Agree. Show me a valuation that gives a guarantee and I'm in for everything I've got Show me a personal guarantee that is a guarantee and I'm in for even more! 
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mikes1531
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Post by mikes1531 on Jan 6, 2017 13:21:04 GMT
NO valuation gives a guarantee of value. Agree. Show me a valuation that gives a guarantee and I'm in for everything I've got IIRC, we've had a couple of cases where a car loan has been valued by a dealer who has said they'll buy the car for an agreed price -- sufficient to cover all the loan's principal and interest/fees -- if the borrower doesn't repay the loan. Not that collecting on these has been stress-free. In one case, FS seemed to forget they had that offer and were reminded by users of this forum. The current loan on the Cadillac is now two months overdue and FS are chasing the underwriter to get them to buy the car. Since the loan was made at 80% LTV, if the sale doesn't complete soon the 'guarantee' won't cover all that is owed.
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09dolphin
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Post by 09dolphin on Jan 7, 2017 3:09:30 GMT
FS say they only provide loans up to 70% of the asset being used as security. I can understand them going slightly over 70% by say 1% but 10% over seems a little foolhardy. Whilst FS may say they have a dealer who will cover the loan and interest it's a worthless statement unless they have a watertight contract with the dealer.
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mikes1531
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Post by mikes1531 on Jan 7, 2017 4:25:06 GMT
FS say they only provide loans up to 70% of the asset being used as security. I can understand them going slightly over 70% by say 1% but 10% over seems a little foolhardy. Whilst FS may say they have a dealer who will cover the loan and interest it's a worthless statement unless they have a watertight contract with the dealer. One thing I don't know about the Cadillac is its actual value. The value FS is showing is the amount the 'underwriter' was prepared to pay. There's a chance it's actually worth more, but I haven't a clue how likely that really is. I expect that many people invested on the basis of the underwriter's offer. If it turns out that the underwriter doesn't buy the car, FS would be left with a large amount of egg on their face -- and a lot of unhappy investors. In that situation, I'd expect FS to dip into their own pocket to top up the sale proceeds to the point where the investors receive all that they are owed. To do otherwise would seem to be suicidal.
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