rogerthat
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Post by rogerthat on Jun 24, 2018 9:44:08 GMT
Ah...skewered it seems by Skewen..another fine mess you've gotten me into FS  2 hours ago (24/06/18) Despite promises from the borrower no interest has been received. We have therefore appointed a receiver to recover the funds due. A further update will be added once the receiver has provided an initial report. 31/05/2018 We are in contact with the borrower regarding payment of interest to renew the loan. |
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mullet
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Post by mullet on Jun 24, 2018 11:14:52 GMT
Ah...skewered it seems by Skewen..another fine mess you've gotten me into FS 2 hours ago (24/06/18) Despite promises from the borrower no interest has been received. We have therefore appointed a receiver to recover the funds due. A further update will be added once the receiver has provided an initial report. 31/05/2018 We are in contact with the borrower regarding payment of interest to renew the loan. I think FS have done alright on this one actually. Interest has been paid for 2 renewals and now they have defaulted it in a fairly timely manner ...not much more I could ask of them Just need to see if the valuation holds up now!
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rogerthat
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Post by rogerthat on Jun 24, 2018 11:30:28 GMT
Ah...skewered it seems by Skewen..another fine mess you've gotten me into FS 2 hours ago (24/06/18) Despite promises from the borrower no interest has been received. We have therefore appointed a receiver to recover the funds due. A further update will be added once the receiver has provided an initial report. 31/05/2018 We are in contact with the borrower regarding payment of interest to renew the loan. I think FS have done alright on this one actually. Interest has been paid for 2 renewals and now they have defaulted it in a fairly timely manner ...not much more I could ask of them Just need to see if the valuation holds up now! Yes..I'll risk comeuppance but I agree, FS have not faffed around too long on this and im hopeful that a full recovery might ensue. Ive also considered whether FS are using shock and awe tactics to bring the borrower to his/her senses. For a rather meagre £46K loan + interest accrued, even with over optimistic valuations being the norm, surely this property will realise more than is owed ? 
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adrian77
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Post by adrian77 on Jun 24, 2018 11:38:35 GMT
damn - I was in this one but did not cancel the renewal as I intended.
Bit puzzled as to what is actually going on here - surely the applicant could have rented out the house? Yet another defaulted property loan but hopefully we are talking about a full recovery or a small loss...
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mjc
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Post by mjc on Aug 7, 2018 22:36:49 GMT
This seems rather odd.
FS say “Borrower has finished the refurbishment”, but the auction pictures show internals very tatty. (Full Address is in FS asset picture)
The FS’s real-time valuation £85-129k, but sale particulars say:-
Description
• For Sale By Online Auction: 22nd – 23rd August 2018
• Guide Price: £49,500+
• Modernisation and refurbishment work required
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 7, 2018 22:49:57 GMT
This seems rather odd. FS say “Borrower has finished the refurbishment”, but the auction pictures show internals very tatty. (Full Address is in FS asset picture) The FS’s real-time valuation £85-129k, but sale particulars say:- Description • For Sale By Online Auction: 22nd – 23rd August 2018 • Guide Price: £49,500+• Modernisation and refurbishment work required FS Special? 
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mjc
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Post by mjc on Aug 7, 2018 23:05:05 GMT
At least the refurb has reduced the FS 3 beds down to auctioneer’s 2.
So why did the borrower renew once, then let it get in the state shown? It’s with “vacant” possession.
“Following a programme of refurbishment, we envisage there is good opportunity to add capital value. Furthermore, if the property were to held as a buy-let investment, we expect the rental income to be in the region of £6,600 pa, which reflects a gross yield of 13.33% based on the guide price.“
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Brainer
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Post by Brainer on Sept 20, 2018 14:36:22 GMT
Sold for £53k. Looks like it will be close for full recovery after fees. Serious questions for FS either way given the original description and subsequent update of "refurbishment complete" turned out to be wide of reality.
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rogerthat
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Post by rogerthat on Sept 20, 2018 15:26:39 GMT
Sold for £53k. Looks like it will be close for full recovery after fees. Serious questions for FS either way given the original description and subsequent update of "refurbishment complete" turned out to be wide of reality. Sold is good...but im not so sure the realisation will be as close as you think...wasn't the loan for £46K ? (excl interest) This also appeared on the asset tab :- "Previously valued at £70,000, we have an updated realtime valuation that puts the current value between £85k-£129k, with an estimated OMV of £106,00" £53K...Not even close !
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Brainer
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Post by Brainer on Sept 20, 2018 18:02:05 GMT
Sold is good...but im not so sure the realisation will be as close as you think...wasn't the loan for £46K ? (excl interest) This also appeared on the asset tab :- "Previously valued at £70,000, we have an updated realtime valuation that puts the current value between £85k-£129k, with an estimated OMV of £106,00" £53K...Not even close ! You're probably right. £46K loan. £4.73K lender interest due currently. Auction website advertises "0% selling fee, £0 entry fee and £0 marketing costs", so... £0 there? Receiver has only been on the job a few months and seemingly just stuck it in an online auction, so the damage there possibly depends on whether this was a fixed % fee or a timed rate? FS' fees and admin costs... not entirely clear to me what these are or where they rank in a recovery from the T&Cs, which read like they haven't been updated since FS moved into property and not just pawn loans.
Will be an interesting test case, especially given FS' culpability.
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empirica
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Post by empirica on Sept 20, 2018 18:36:12 GMT
Tight with the probability of a shortfall, but the amounts must be small enough for FS to simply cover it and put it down to (yet more) experience?
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rogerthat
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Post by rogerthat on Sept 20, 2018 18:46:50 GMT
Tight with the probability of a shortfall, but the amounts must be small enough for FS to simply cover it and put it down to (yet more) experience? True..though with the original VR statement (above) Id be embarrassed enough to pay out and have an office whip round if necessary.
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james21
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Post by james21 on Sept 20, 2018 18:47:21 GMT
Tight with the probability of a shortfall, but the amounts must be small enough for FS to simply cover it and put it down to (yet more) experience? FS are running a business they dont cover anything from good will, lenders pay costs eg LPA receiver and auction, the remainder of receipts is distributed to lenders. In the case of this loan I expect no capital loss but no interest. No loss to FS BTW
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rogerthat
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Post by rogerthat on Sept 20, 2018 18:49:57 GMT
Sold is good...but im not so sure the realisation will be as close as you think...wasn't the loan for £46K ? (excl interest) This also appeared on the asset tab :- "Previously valued at £70,000, we have an updated realtime valuation that puts the current value between £85k-£129k, with an estimated OMV of £106,00" £53K...Not even close ! You're probably right. £46K loan. £4.73K lender interest due currently. Auction website advertises "0% selling fee, £0 entry fee and £0 marketing costs", so... £0 there? Receiver has only been on the job a few months and seemingly just stuck it in an online auction, so the damage there possibly depends on whether this was a fixed % fee or a timed rate? FS' fees and admin costs... not entirely clear to me what these are or where they rank in a recovery from the T&Cs, which read like they haven't been updated since FS moved into property and not just pawn loans.
Will be an interesting test case, especially given FS' culpability.
Got a feeling theres a recent thread detailing that somewhere..?
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empirica
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Post by empirica on Sept 20, 2018 19:30:49 GMT
Tight with the probability of a shortfall, but the amounts must be small enough for FS to simply cover it and put it down to (yet more) experience? FS are running a business they dont cover anything from good will, lenders pay costs eg LPA receiver and auction, the remainder of receipts is distributed to lenders. In the case of this loan I expect no capital loss but no interest. No loss to FS BTW Time will tell but I'm of the opinion that even just a full capital return will have cost FS a few quid.
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