markdirac
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Post by markdirac on Jan 10, 2017 15:28:44 GMT
pro con
- The valuation is one local estate agent's advice as to what price to put the house on the market. It may be wrong, it may be right.
- We have no idea of the scale of the works...
- ...and so we have no idea by how much the £170k value will be reduced once the refurbishment is underway
- ... and we don't know what is the chance of the refurbishment completing successfully and a sale in 6 months
- How will our loan be repaid if a sale is not achieved in 6 months?
- We have no idea of the capability of the borrower to complete this project successfully. (I am thinking Grand Designs successes and failures.)
- We do not know if the borrower is paying monthly interest to the 1st charge holder, or if she will need to find interest as well as capital after 6 mths
If everything goes badly and the project does not complete: - say the current value today is only realistically £150k
- say the value is reduced by £30k at the refurbishment's point of no return
- say there is £10k of interest to find
total equity available: £110k
This would leave £14k for the 1st charge holder and FS to prosecute recovery of security.
I reckon this would be a worst-case situation.
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markdirac
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Post by markdirac on Jan 9, 2017 11:45:21 GMT
Maybe FS are backed into a corner with this one. Perhaps they have decided that if they default it, they will have a load of hassle & cost (small recoveries team?, awkward borrower) and will possibly face their own haircut. Perhaps it's better to continue to fund this refurbishment to increase chances of full repayment at a low administrative cost. Although I am amazed that they have not found a way to drop the LTV to 60% or even 65%.
Not only am I shoving hard on the barge pole, but I have lost a little confidence in FS.
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markdirac
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Post by markdirac on Jan 6, 2017 11:16:47 GMT
For bullet loans, like those on FS, it is essential that action is taken swiftly as the LTV rises very quickly if interest is not paid at term. I note that for some loans, such as the borrower in Liverpool today, where some FS lenders rank third behind other FS lenders, that accruing interest could easily accumulate to the point that the security will not cover both principal and accumulated unpaid interest. In such a case, the third-rank lenders would lose disproportionately and prompt recovery would be particularly important for this small pool of the FS lenders.
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markdirac
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Post by markdirac on Jan 6, 2017 10:59:46 GMT
... More concerning is how long some loans sit in limbo between funded and drawn down whilst retaining lenders money, admittedly earning interest. Yes, that is a significant factor for loans which are (sort of) only 6 month term - the effective interest rate is cut by I guess about one % point if a loan is in limbo for a couple of weeks.
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markdirac
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Post by markdirac on Jan 5, 2017 21:36:41 GMT
Why are there so many loans taking so long to fill on FS? These loans would have been snapped up by now at SS or MT. I must be missing something, the majority of the available loans are close to being filled (90-95%). They have been close to being filled for days and days now. Not hours and hours (MT), or even seconds and seconds (SS).
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markdirac
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Post by markdirac on Jan 5, 2017 18:48:05 GMT
Why are there so many loans taking so long to fill on FS? These loans would have been snapped up by now at SS or MT.
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markdirac
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Post by markdirac on Jan 5, 2017 13:51:05 GMT
This is the business into commercial flooring.
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markdirac
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FundingSecure (FS) in Administration
Endurance Boat
Jan 2, 2017 9:59:16 GMT
Post by markdirac on Jan 2, 2017 9:59:16 GMT
I would like to hear from FS about the insurance covering this boat. In particular, the circumstances in which the insurance might not pay out.
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markdirac
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Post by markdirac on Dec 5, 2016 8:28:30 GMT
Deafening silence! I wonder what is happening with this loan? Only 8 days to go, yet no update / encouragement / hope from SS. And no chatter here at P2PIF. Poor PBL106 - no one is interested in it any longer.
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markdirac
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Post by markdirac on Nov 23, 2016 19:16:05 GMT
For anyone curious about the Private Rented Sector (PRS) Guarantee Scheme, here are some explanations: www.insidehousing.co.uk/housing-associations-line-up-for-prs-guarantees-programme/7011505.articlewww.venn-partners.com/prs/So, Venn Partners, on behalf of the government, are using their vehicle PRS Finance Plc to issue A-rated bonds to raise finance to pay to the likes of the S****** borrower to repay us. The PRS Finance Plc bonds are government-backed, and have achieved a high rating from Moody's. I am wondering if there is any way for us to be able to partake in buying these bonds from PRS Finance Plc. Although, I guess they will not pay much. Any guesses anyone? 4%? I have read some talk of a crowdfunder(s) being set up to buy large bonds which would not normally be available to us small-fry. ?
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markdirac
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Post by markdirac on Nov 16, 2016 10:58:46 GMT
AC report (11 nov 2016) that they requested the administrators to commit to not taking a fee for their work until the loan has been repaid in full, and that they agreed to this. Very generous of the administrators! Why would administrators agree to such a request?
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markdirac
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Post by markdirac on Oct 22, 2016 18:03:32 GMT
There is no delay. We give ' advance notice of going live' not ' 24 hours notice'. Historically and generally we give a minimum of 24 hours notice but this can be extended depending on various circumstances, timings, days of the week, size of the loan, appetite, phase of the moon, whats on TV and urgency Appreciate some investors sell their loan parts and are now technically in cash and losing a day or so of interest, but better for us to be sure cash is flowing and on account. Its a big one, we need to monitor incoming cashflow to deduce appetite, which is looking very strong. There won't be much on the SM when we launch. In your email you stated "We are pleased to confirm that the above loan will be going live on Saturday (22/10/2016)." Not even "We are pleased to inform you..." but rather "We are pleased to confirm...".
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markdirac
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Post by markdirac on Oct 5, 2016 18:48:31 GMT
Who is left who is offering rates greater than SS and MT, other than ReBS, TC and FC?
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markdirac
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Post by markdirac on Oct 5, 2016 18:26:27 GMT
I wonder what the rates will be! Interesting stuff! I would guess similar rates to Wellesley, Money & Co, Octopus. If so, not worth the distraction.
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markdirac
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Post by markdirac on Oct 3, 2016 16:01:06 GMT
What is the opinion of the P2P members of having more than one person offering a PG to underwrite the same loan. I place twice as much faith in two guarantors, and more than thrice as much faith in three guarantors. I reckon that, with multiple guarantors, it becomes far more awkward to squirrel assets away before the fateful day. I can imagine discussions between the guarantors, each urging the other(s) to be the first to liquidate their house. And if there is anything naughty considered, then it becomes much more disadvantageous for two or three to conspire to carry out such naughtiness.
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