SteveT
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Post by SteveT on Jun 3, 2018 15:05:41 GMT
It depends entirely on the loan and the nature of the security. I’ve had loans repay in full after being 2 years late. I’ve also experienced a 70% loss on a wind turbine that proved to be nowhere near as close to being finished as claimed. If you’ve a 1st charge over a readily marketable security (eg, a residential property or some bling) you’ll probably be Ok. Conversely there are some 2nd and 3rd charge loans on FS seemingly headed for a total loss.
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SteveT
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Post by SteveT on Jun 3, 2018 15:47:23 GMT
It depends entirely on the loan and the nature of the security. I’ve had loans repay in full after being 2 years late. I’ve also experienced a 70% loss on a wind turbine that proved to be nowhere near as close to being finished as claimed. If you’ve a 1st charge over a readily marketable security (eg, a residential property or some bling) you’ll probably be Ok. Conversely there are some 2nd and 3rd charge loans on FS seemingly headed for a total loss. My main concern is 2004587572 and it's various tranches, and 1861254173. You can read endless posts about Whitehaven on here; IMO, if FS don’t make up the shortfall themselves, there will be formal FOS complaints and legal action. Knaresborough I suggest you assume a near total loss.
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james21
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Post by james21 on Jun 3, 2018 16:48:07 GMT
Hi all This may be a naive question: what's FS's past performance of recouping capital on defaulted loans? Im busy trying to sell out of my loans on FS, but most I cant because theyve defaulted. Should I give up hope on ever getting my capital back? (I hope not as Ive got a lot in there!!) Or is the likely scenario that Ill get most of my capital back in the coming years?  Selling out altogether is IMHO not the best strategy to recoup losses, better to stick with it and add more funds but be more careful in the expectation that 13% interest will off set your default capital/interest losses over time. If you pull out altogether you will still get defaults on other platforms but achieve a lower headline interest rate. FS is the only platform that has a sufficient number loans at 13%. I work on getting back no more that 50% recovery on average from FS and it looks like the number defaults/about to default is increasing, could be less; anyones guess
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Post by df on Jun 3, 2018 17:55:06 GMT
Also all the railway memorabilia faff. Very slowly, but they do get sold. I've got parts in 10 of them and 9 had some repayments. It may take few more years to recover them all and possibly with some capital loss.
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adrian77
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Post by adrian77 on Jun 3, 2018 18:30:25 GMT
I would agree but for a caveat - there are now many overdue loans and I am convinced there are going to be some mega losses e.g. 100% ones in the near future. I am no business accountant but I am very concerned that FS don't have the lomg-term cash reserves to pay for all the legal work needed and that is not including any class action. In short I am anything but convinced FS will still be around for many more years and hence I am selling up as quickly as I can...just my opinion. Of course we all know other p2p platfroms who have gone bust so I am not singling out FS.
As I said before FC, to their credit, ditched the property market but FS seem to be ploughing on into this as if no tomorrow.
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Post by df on Jun 3, 2018 20:20:03 GMT
I would agree but for a caveat - there are now many overdue loans and I am convinced there are going to be some mega losses e.g. 100% ones in the near future. I am no business accountant but I am very concerned that FS don't have the lomg-term cash reserves to pay for all the legal work needed and that is not including any class action. In short I am anything but convinced FS will still be around for many more years and hence I am selling up as quickly as I can...just my opinion. Of course we all know other p2p platfroms who have gone bust so I am not singling out FS. As I said before FC, to their credit, ditched the property market but FS seem to be ploughing on into this as if no tomorrow. I've noticed that new loan flow is reducing. Most we get are renewals and increases in never-ending property projects. If it continues to go that way the loan book will eventually dry out. Did FC actually ditch "properties"? There was an update from FC about a year ago saying that they're not originating any new bullet loans. I still have a number of them overdue (all chosen by autobid after sept18).
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bugs4me
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Post by bugs4me on Jun 3, 2018 22:13:12 GMT
It seems to be mainly the earlier loans that FS offered that fall into the 'do you feel lucky....' . Many investors, well myself anyway, tended to take things presented by FS on face value with minimal DD. So whilst FS may have been sloppy over enthusiastic I should have done more DD myself.
Maybe they are now more diligent in their loan offerings although as I am withdrawing from the platform it's only a guess on my part.
Official defaulted loans plus those that have in all but name defaulted - FS are simply out of their league IMO when it comes to effective recoveries. I'm all in favour of timing - you wouldn't sell a motorbike in December, you'd wait until April - but there are several outstanding loans that are depreciating I suspect by the hour. Rather than take action FS appear to move back into their shell.
The turbine loan mentioned earlier by SteveT was a disgrace in loan management/monitoring/etc. There's really no way of sugar coating the total incompetence on the part of FS.
You could be forgiven for thinking that repayments by borrowers is an option. When those repayments will take place well.......hopefully I'll still be walking planet Earth to see it.
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adrian77
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Post by adrian77 on Jun 4, 2018 10:43:39 GMT
Sorry should have said that FC stopped (although I think there were a couple of exceptions)
offering new property loans. Whatever my point is that I just don't believe investing in property developements funded by pawn loans is a valid business model. I sure as hell can't run developments that would be profitable with such high interest charges - the number of defaulted property loans speaks for itself. I accept there may be others who can develop with such high rates but overall I think this is a non-runner. On the other hand a traditional pawn business put on-line with p2p lending and standard valuable and readily realisable assets such as precious metals, Rolex watches etc strikes me as a very good opportunity.
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