j
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Post by j on Sept 2, 2014 18:18:33 GMT
2nd Sep 2014 at 16:30 Lender Update
Further to our update last Friday we write to provide further detail on progress.
Unfortunately, despite numerous chasers over the last two days we still await further detail on rental income that will enable us to fully access any potential refinance. An update from the introducer stated that he was meeting the client this afternoon so we are hopeful of receiving the necessary information tomorrow.
In the meantime, we now definitely expect the loan to fail to repay on Friday meaning default interest will be accruing from Saturday and will continue to accrue through to any refinance.
It remains our expectation based on the income information we were provided at the time of the initial deal that a refinance will be achievable and serviceable however we need to see the figures to confirm this. As soon as these are received and we have clarity on this then a detailed credit report will be compiled to allow investors to see the new proposed deal and to decide whether to invest or not.
We will provide a further update by Thursday hopefully with the benefit of the additional information we require.
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mikes1531
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Post by mikes1531 on Sept 2, 2014 19:41:20 GMT
... we now definitely expect the loan to fail to repay on Friday meaning default interest will be accruing from Saturday and will continue to accrue through to any refinance. Have we been told yet what the default interest rate on this loan is? (I have looked but couldn't find anything.) Or do we need to ask davidricketts1 to supply that info?
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j
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Penguins are very misunderstood!
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Post by j on Sept 2, 2014 20:33:09 GMT
... we now definitely expect the loan to fail to repay on Friday meaning default interest will be accruing from Saturday and will continue to accrue through to any refinance. Have we been told yet what the default interest rate on this loan is? (I have looked but couldn't find anything.) Or do we need to ask davidricketts1 to supply that info? I have it in my head from somewhere that it would be 1.5% pm but don't quote me. What would also be useful (and I know David cannot give a definite time frame) is how long, genuinely, it might take for the whole issue to be resolved & loan repaid. It would serve as a guide as to the next step in terms of possible funds availability & how to tie up with shadow bid commintments
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Post by Ton ⓉⓞⓃ on Sept 2, 2014 20:44:43 GMT
... we now definitely expect the loan to fail to repay on Friday meaning default interest will be accruing from Saturday and will continue to accrue through to any refinance. Have we been told yet what the default interest rate on this loan is? (I have looked but couldn't find anything.) Or do we need to ask davidricketts1 to supply that info? Eppy makes no mention either.IN EDIT Eppy says-On 13th Feb 2014 at 09:17 Assetz Capital answered: "Should the loan default, the lender rate increases to 1.5% per month."
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Sept 3, 2014 16:34:53 GMT
Am I mistaken has there been a decent reduction in units available for this one on the AM over last 24 hours?!
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kermie
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Post by kermie on Sept 3, 2014 17:00:05 GMT
Am I mistaken has there been a decent reduction in units available for this one on the AM over last 24 hours?! I've managed to off-load a bunch of units in the past few days - including a few this afternoon. Clearly some are enticed by the 18% default rate and associated risk more-so than the original loan itself!
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Post by whitmanthecat on Sept 3, 2014 20:23:01 GMT
I've had a number of units for sale for some time now without much action and three went today, so people are buying. At the end of Friday, the loan will be in default and be pulled from the aftermarket, so those enticed by the 18%pa and comfortable with (or ignorant of) the additional risk are having to get in now.
At first I thought it might look like the low liqudity of this loan would improve if the amount left on the AM gets low enough, but after Friday and before a new arrangement can be made, it will be totally illiqiuid.
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Post by bracknellboy on Sept 4, 2014 17:03:20 GMT
Starting to look a bit dodgy with all the latest chasing and no update from the borrower.
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agent69
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Post by agent69 on Sept 4, 2014 20:18:53 GMT
Decided to cash in my exposure to Ipi and Epi.
Marked them down by 0.25% (lost 25p per £100) and they went in less than an hour.
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Post by henders on Sept 5, 2014 10:35:56 GMT
Was getting a bit nervous about Ips so marked down by 0.25% and sold the lot (£5K) in next to no time.
Did think of holding for default interest but needed to generate some cash and also test out selling at a markdown in AM and fairly straightforward.
I'm still in Ha****y.
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Post by phoenix on Sept 5, 2014 11:44:00 GMT
Sold some this morning at 0.1% markdown.  |
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shimself
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Post by shimself on Sept 5, 2014 13:12:53 GMT
Sold some this morning at 0.1% markdown. Gawd struth what a process. Markdown means markup, ie you have to enter -0.1 and I couldn't get bulk sake to work at all
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mikes1531
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Post by mikes1531 on Sept 5, 2014 15:42:56 GMT
Other lenders don't see to be too concerned. I guess 18% default interest provides a strong incentive to stay in an illiquid non-performing loan.
The biggest discount being offered on a unit for sale appears to be 0.02% right now -- with only a few hours left before the sales window closes.
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tonyr
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Post by tonyr on Sept 6, 2014 7:56:10 GMT
Sold some this morning at 0.1% markdown. Gawd struth what a process. Markdown means markup, ie you have to enter -0.1 and I couldn't get bulk sake to work at all Yeah, I've never got the bulk sale to work either with a markdown. Selling individually works though, so it's not as if the database is bouncing me because I have none available to sell.
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Post by Ton ⓉⓞⓃ on Sept 6, 2014 8:06:55 GMT
Gawd struth what a process. Markdown means markup, ie you have to enter -0.1 and I couldn't get bulk sake to work at all Yeah, I've never got the bulk sale to work either with a markdown. Selling individually works though, so it's not as if the database is bouncing me because I have none available to sell. I just gave the 'Bulk Sale at a discount' a try on North Lothian on reading your post. For me it's working. Not sure what causing the trouble.
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