kermie
Member of DD Central
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Post by kermie on Aug 9, 2017 21:00:54 GMT
I've been lending in P2P for 3+ years now, and suffered a flurry of defaults, as you should expect.
But with recent conversations over wildly (arguably) over-optimistic valuations, I wondered had anyone actually experienced cases of getting any recompense from valuers or their insurers? Either withi P2P or outside of P2P?
I gather it's like nailing jelly to a wall, but I'd be interested to hear of any real-life experience/examples.
Personally I'm concluding that going down this line of recovery is basically a waste of time (and indeed money).
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ben
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Post by ben on Aug 9, 2017 22:02:57 GMT
Also intersting that they had damages reduced by 40% as the borrower was dodgy, good job not one of the borrowers on some of the sites, or the judge would have reduced it by 100%,.
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Post by Butch Cassidy on Aug 10, 2017 8:31:45 GMT
I gather it's like nailing jelly to a wall, but I'd be interested to hear of any real-life experience/examples. Personally I'm concluding that going down this line of recovery is basically a waste of time (and indeed money). That would also be my view usually something along the lines of "the valuation was correct at the time but since then market conditions/state of the building/surroundings/planning regime etc have changed so the valuer can no longer be held directly responsible for any loss, that would be the irresponsible borrower/architect/planner/platform/anyone else who can be put in the frame." So even if & when the valuation could see any blame attached it then goes to the lawyers who will drag out both the time & costs so that most grievances are either shelved or dropped altogether & lenders are left holding the can.
My view is that platforms should take valuation reports a bit more seriously from the outset as they are the driving force behind any lending but often the process seems to be how much does the borrower want, stick 30% on that so we can offer LTV of 70% & hey presto offer it to lenders with a nice theoretical default buffer. But it must be remembered that most platforms stand to lose nothing (except perhaps a bit of reputational damage) if projects go wrong as they have already driven their volume & growth & taken the majority of their fees long before any default.
I would actually like to wager that the combined experience, dedication & expertise that the members of this forum bring to the scrutiny of these projects could actually come up with a much more accurate & realistic VR than most RICS professionals seem to manage & that is regularly demonstrated in these forum pages to the benefit of everyone involved - P2P collective DD at it's best.
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Post by dan1 on Aug 10, 2017 8:42:17 GMT
Does anyone know the typical cost of a surveyors indemnity insurance? If, as we suspect, it pays out only in exceptional circumstances then it'd most likely be pretty cheap, would it not?
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am
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Post by am on Aug 10, 2017 12:23:15 GMT
This one looks interesting: Financial institution claiming against a commercial overvaluation with the surveyor counterclaiming the lender was (at least equally) at fault for giving a loan to a 'dodgy' borrower. Got P2P written all over it  That actually seems quite positive from the point of view of successfully making claims. On the other hand I don't recall ever seeing anyone between so careless as to value a business on turnover ignoring margins.
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am
Posts: 1,495
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Post by am on Aug 10, 2017 12:32:14 GMT
This one looks interesting: Financial institution claiming against a commercial overvaluation with the surveyor counterclaiming the lender was (at least equally) at fault for giving a loan to a 'dodgy' borrower. Got P2P written all over it That actually seems quite positive from the point of view of successfully making claims. On the other hand I don't recall ever seeing anyone between so careless as to value a business on turnover ignoring margins. Bit this is less comforting.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Nov 29, 2017 11:44:24 GMT
I have no idea how the UK legal system works however I suspect that, while we're still in the EU, that the EU Court can possibly overturn the overturn?!!  Lawyers eh, laughing all the way to the bank. If they haven't already bought the bank. |
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