ptr120
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Post by ptr120 on May 22, 2019 20:36:07 GMT
According to the last update (almost a month ago) outstanding items to achieve BC sign-off were being costed with a view to completing them in 4 weeks time (by this Friday). Yet we know not if they were costed, if the borrower has funds to complete the work, of if anything has happened in this significantly overdue loan.
This loan hasn't been serviced for over a year. Promises of refinance have now come and gone (twice). Family trust funds have failed to be liquidated. Can anyone think of any reasonable explanation as to why MT are cutting the borrower so much slack? The accrued interest alone will have already eaten in to the security on this loan.
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Post by highlevel on May 22, 2019 20:49:24 GMT
Can anyone think of any reasonable explanation as to why MT are cutting the borrower so much slack? The accrued interest alone will have already eaten in to the security on this loan. Same reason as the other MT loans that are in extended forbearance... MoneyThing are happy to shuffle their feet and stare at the floor as long possible to avoid declaring a default, it stinks really. A duck by any other name....
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 22, 2019 21:13:41 GMT
Can anyone think of any reasonable explanation as to why MT are cutting the borrower so much slack? The accrued interest alone will have already eaten in to the security on this loan. Same reason as the other MT loans that are in extended forbearance... MoneyThing are happy to shuffle their feet and stare at the floor as long possible to avoid declaring a default, it stinks really. A duck by any other name.... What's the difference between the situation now when the loan is under the supervision of an IP and formal default when the loan will be controlled by an IP? Except we can pretty much pencil in a capital loss once it is a recovery situation. It seems likely the IP thinks the current strategy is most likely to a realise the best return. i.e. it appears to have an exit.
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Post by queenvictoria on May 23, 2019 5:42:13 GMT
Same reason as the other MT loans that are in extended forbearance... MoneyThing are happy to shuffle their feet and stare at the floor as long possible to avoid declaring a default, it stinks really. A duck by any other name.... What's the difference between the situation now when the loan is under the supervision of an IP and formal default when the loan will be controlled by an IP? Except we can pretty much pencil in a capital loss once it is a recovery situation. It seems likely the IP thinks the current strategy is most likely to a realise the best return. i.e. it appears to have an exit. I think it is likely that MT is cutting them so much slack is because they think it is the most likely route to guiding this project to fruition. The site itself is probably going to be tricky to sell on at anywhere near its valuation given what it is and where it is so on balance I think they are doing the right thing in trying to get the business up and running and fit for a re-finance. My beef is that MT have been very poor at communicating with the stakeholder group that is the lenders. I appreciate that they cannot be giving a blow by blow account but given the state of play over the past 12 months I think the updates should have been more frequent (even weekly or fortnightly) and more detailed. They way they have played it with lenders the borrowers' failings have become MT's failings hence the comments above. It's a problem that is easy for MT to fix, even at this late stage; I wish they would.
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SteveT
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Post by SteveT on May 23, 2019 6:37:51 GMT
I appreciate that they cannot be giving a blow by blow account but given the state of play over the past 12 months I think the updates should have been more frequent (even weekly or fortnightly) and more detailed. Your communication expectations are, frankly, excessive and pointless. If an Administrator / Receiver were to be appointed (as many seem to hanker for), updates would become 6-monthly at best. What difference does it make whether lenders hear from week to week what is going on at the site? They cannot do anything with the information. Platforms should be given the headroom to focus on the important stuff and to communicate as and when there is something worth communicating.
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Post by quidsaveblue2003 on May 23, 2019 7:05:36 GMT
I appreciate that they cannot be giving a blow by blow account but given the state of play over the past 12 months I think the updates should have been more frequent (even weekly or fortnightly) and more detailed. Your communication expectations are, frankly, excessive and pointless. If an Administrator / Receiver were to be appointed (as many seem to hanker for), updates would become 6-monthly at best. What difference does it make whether lenders hear from week to week what is going on at the site? They cannot do anything with the information. Platforms should be given the headroom to focus on the important stuff and to communicate as and when there is something worth communicating. Your tone is very interesting. It sounds like, MT keeps quiet on this loan means they are 'focusing on the important stuff ' you made me laugh
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Post by queenvictoria on May 23, 2019 7:14:24 GMT
I appreciate that they cannot be giving a blow by blow account but given the state of play over the past 12 months I think the updates should have been more frequent (even weekly or fortnightly) and more detailed. Your communication expectations are, frankly, excessive and pointless. If an Administrator / Receiver were to be appointed (as many seem to hanker for), updates would become 6-monthly at best. What difference does it make whether lenders hear from week to week what is going on at the site? They cannot do anything with the information. Platforms should be given the headroom to focus on the important stuff and to communicate as and when there is something worth communicating. Of course there is nothing directly we can do, that's what MT is paid to do, but good regular communication will help us, the lenders, maintain confidence in the platform. My confidence is low based particularly on MT's communication on this loan over the past few months. Surely MT wants to retain lenders for future lending; I am less likely to want to lend if and when my money comes back from this loan - that is a result of MT's poor and inconsistent communications. It wouldn't be hard to fix.
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hazellend
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Post by hazellend on May 23, 2019 7:56:38 GMT
Unlike Lendy, Moneything have a track record of trustworthy and ethical behaviour ( at least that is from what I have seen )
I don’t understand investors needs for frequent updates, they really don’t make any difference.
If you want out of the loan you can sell at a discount.
This loan has obviously been bad but MT are following the only route that will allow repayment in full. They should have been more assertive and and the experience will not be forgotten in future loans.
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withnell
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Post by withnell on May 23, 2019 8:01:46 GMT
Unlike Lendy, Moneything have a track record of trustworthy and ethical behaviour ( at least that is from what I have seen ) I don’t understand investors needs for frequent updates, they really don’t make any difference. If you want out of the loan you can sell at a discount. This loan has obviously been bad but MT are following the only route that will allow repayment in full. They should have been more assertive and and the experience will not be forgotten in future loans. As this loan is suspended, it's sadly not possible to sell out. Think there's a difference between frequent and relevant communication - if an update says that we won't hear anything for 3 months, then a quarterly update is fine. If an update refers to action in the next 1-2 weeks impacting an outcome in 4 weeks, it seems reasonable to expect a quick update after the 1-2 weeks to say if matters are on track or not. It's a 2 minute task that inspires a great deal of confidence!
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Forward
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Post by Forward on May 23, 2019 9:29:04 GMT
Update posted
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hendragon
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Post by hendragon on May 23, 2019 11:17:42 GMT
The point of the borrower adding value to the site was well made by MT. I suspect that given the nature of the project, and perhaps the borrower, MT is making the best of it. However a part of me still believes that unless there is a pre-defined time limit beyond which the lender will not go there can be a a lack of focus and urgency on the part of the borrower.
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ptr120
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Post by ptr120 on May 23, 2019 11:43:01 GMT
The point of the borrower adding value to the site was well made by MT. I guess my question is if value is being adder faster than interest is accruing
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dovap
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Post by dovap on May 23, 2019 11:46:20 GMT
interest accruing - oh how droll
Suppose as this was sold/missold as being 'near complete' 18 months ago a couple more years waiting is neither here nor there
every confidence the borrower will really crack on now ..........
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eeyore
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Post by eeyore on May 23, 2019 12:23:02 GMT
I'm surprised by the revelation, at this late stage, that Building Control require some specific measures for fire protection on the ground and upper floors. Wouldn't that requirement have been stipulated very early on? But I'm amazed by the very next sentence in MT's update which states that the borrower has appointed a specialist to improve the fire protection in the basement but with no mention of the floors demanded by Building Control. Has there been some mis-communication somewhere? Or have I gone into cynicism-overload in assuming that this borrower has commissioned work in the basement which hasn't been demanded by Building Control whilst ignoring the requirements for the upper floors which have?
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justme
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Post by justme on May 23, 2019 23:13:53 GMT
the only route that will allow repayment in full. Wow.Do your expectations inclide a year of interest owed ?
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