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Post by waryinvestor on May 27, 2020 17:24:40 GMT
28/01/2020 A sale of the property by Receivers completed on 6 December 2019. The sale price was £245,000, and with forfeited deposits from previous failed sales, total receipts are £299,550. Given the litigious nature of the case with the borrowers, costs incurred by the Receivers are significant, and we are currently in discussions over these prior to the Receivers completing a final account. A payment on account of £175,000 has been received. Ok so dumb question...with the reduction in 'costs' of a further £33500 can someone confirm what the total realisation to investors will be ? £299,550 - £91,000 = £208,550 ? Erm..am I correct in thinking that represents a 93% return of capital ? Makes one wonder how the total fees were arrived at in the first place if a reduction of near 27% can be waived but well done the Administrators Sounds Right. 93.08% to be repaid [(175000 + 33500)/224000].
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Post by waryinvestor on Jun 28, 2020 23:13:43 GMT
10/03/20 update says 93.08% received so far ? No updates since then. Any ideas ?
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Post by overthehill on Jun 29, 2020 9:26:11 GMT
"costs incurred by the Receivers are significant"
I would describe them as unusually eyewateringly high. Hopefully the administrators are demanding paper trail evidence and receipts hence the delay, the receivers are not likely to admit any wrong doing off the bat? We can see multiple forfeited deposits and a sitting tenant which should have meant full recovery+interest but what caused the disproportionate expenses, remember the 10% receiver charges rule, sorry guideline.
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adrian77
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Post by adrian77 on Jun 29, 2020 10:40:21 GMT
Several of us said this one would be a disaster and wondered if the borrower was trying it on. All in all I think this is a "good" result and could easily have been a lot worse and not surprised the legal expenses were "significant"
Yet again I think FS has been incredibly incompetent here and lent money without proper DD - hopefully they can be sued for these high legal fees but somehow I doubt it but I do hope a general claim for being "bloody useless" to use the legal term can be bought
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rogerthat
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Post by rogerthat on Aug 12, 2020 14:56:37 GMT
FundingSecure Mixed Use Property Coventry - Renewal - Loan Update Loan Reference: 3934175822
An update has just been added to a loan that you have an investment in.
UPDATE:
Further to previous updates, a sale was completed by the receivers in December 2019 at £245,000. In addition to this, funds of £54,550 were received in respect of forfeited deposits on two failed exchanges of contract and a contribution to legal costs from occupiers. A payment on account of £175,000 was received in December 2019. The receivers have now finalised all matters and closed their account. As such, a final distribution has been received in the sum of £34,128.40. This has resulted in a final net realisation of £209,128.40 for the benefit of FundingSecure.
As previously advised, the receivers total costs to include legal fees, security maintenance, compliance, professional fees and insurance amounted to £90,421.60. Investors will receive 83.87% of capital.
Edit..My investment £500...returned £419.37 (-5.8% pa )
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Post by overthehill on Aug 12, 2020 15:32:49 GMT
What an total surprise that they didn't post a detailed breakdown of the costs, all 90k in receiver costs to sell a cheap property. We are the carcass that is getting picked over by vultures.
Hopefully there is someone with power , authority, influence or all three who can expose and punish those responsible. This one wouldn't even be near the top.
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adrian77
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Post by adrian77 on Aug 12, 2020 16:19:49 GMT
well could have been a lot worse - at least they took non-returnable deposits. This loan book is so poor that an 18% capital loss is seen as not too bad compared to many others!
Will be interested to see who actually bought this one and whether any relation to the current owner (this is quite legal so not suggesting otherwise)
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mah
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Post by mah on Aug 15, 2020 18:25:13 GMT
What an total surprise that they didn't post a detailed breakdown of the costs, all 90k in receiver costs to sell a cheap property. We are the carcass that is getting picked over by vultures.
Hopefully there is someone with power , authority, influence or all three who can expose and punish those responsible. This one wouldn't even be near the top.
They said earlier that 93.08% to be repaid, but have only returned 83.87% with no explanation. Any ideas ?
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Post by overthehill on Aug 16, 2020 8:52:31 GMT
93.08% refers to the recovered amount against a loan of 224k. After you take off 5% + (2.5% + VAT ) of the recovered amount for FS + C&G, it comes to 85.9% investor return. There is another 2% lost somewhere in charges. Looking at the detailed breakdown of other recoveries might shed some light.
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mah
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Post by mah on Aug 16, 2020 11:57:39 GMT
That's correct.
Total Recovered amount is 209128.4 (175000+34128.40). So, 209128.4/224000 is actually 93.36%. After FS+CG Charges (5% + 3% invl VAT), it should be £192398.13/224000 = 85.89%. So, another 2.02% was eaten up by somebody else ?
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mah
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Post by mah on Sept 5, 2020 12:20:10 GMT
It appears that they have charged 5% on the Recovered Amount, which is HIGHER than the Loan Amount. Also, they have charged the 3% on the (Recovered Amount + Forfeited Amount) - although, they had nothing to do with the Forfeited Amount. Charge whatever is convenient !
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Post by overthehill on Sept 6, 2020 9:21:37 GMT
It appears that they have charged 5% on the Recovered Amount, which is HIGHER than the Loan Amount. Also, they have charged the 3% on the (Recovered Amount + Forfeited Amount) - although, they had nothing to do with the Forfeited Amount. Charge whatever is convenient !
Well done, that is some spot. Please forward to CG&Co and slow the payment up even more ! Is it worth highlighting that we should watch out for this in the other recoveries !
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rogerthat
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Post by rogerthat on Sept 6, 2020 12:00:21 GMT
It appears that they have charged 5% on the Recovered Amount, which is HIGHER than the Loan Amount. Also, they have charged the 3% on the (Recovered Amount + Forfeited Amount) - although, they had nothing to do with the Forfeited Amount. Charge whatever is convenient ! Sleuth of the week award..well done. Way beyond my forensic capabilities. As has already been requested, would you please inform CG & Co with a copy to the CC. Have you had the chance to calculate how much extra CG & Co have 'unintentionally' trousered as a result ?
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adrian77
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Post by adrian77 on Sept 6, 2020 15:50:12 GMT
well done mah - wonder what else such eagle eyed chappies will find in other loans settlements!
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mah
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Post by mah on Oct 29, 2020 22:21:53 GMT
It appears that they have charged 5% on the Recovered Amount, which is HIGHER than the Loan Amount. Also, they have charged the 3% on the (Recovered Amount + Forfeited Amount) - although, they had nothing to do with the Forfeited Amount. Charge whatever is convenient ! Sleuth of the week award..well done. Way beyond my forensic capabilities. As has already been requested, would you please inform CG & Co with a copy to the CC. Have you had the chance to calculate how much extra CG & Co have 'unintentionally' trousered as a result ? FS have charged 5% on the Higher Recovered Amount, not on the Lower Loan Amount. Plus they charged the 5% on the Forfeited Deposit from another Party.
That's just an extra £3777.50 on 1 little Loan - just a trivial Accounting Oversight. I guess I'm not allowed to post the exact figures here.
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