p2pete
Member of DD Central
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Post by p2pete on Oct 27, 2018 14:11:52 GMT
I seem to have a number of loans that are all A+ rated that have produced no return. Examples are: 46093, 47650, 47572, 47551, 44217 and 17889
They are property loans that I was allocated in March/April just before the last payment was due. So after paying the capital plus accrued interest plus servicing fee, there is zero profit.
After 6 months the capital has not been repaid but the loans have not been downgraded or defaulted. Does this mean that even if the loans get repaid I will not get any profit from them, yet still have the risk of capital loss and have money tied up for months on end?
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Post by Badly Drawn Stickman on Oct 27, 2018 14:42:44 GMT
I seem to have a number of loans that are all A+ rated that have produced no return. Examples are: 46093, 47650, 47572, 47551, 44217 and 17889 They are property loans that I was allocated in March/April just before the last payment was due. So after paying the capital plus accrued interest plus servicing fee, there is zero profit. After 6 months the capital has not been repaid but the loans have not been downgraded or defaulted. Does this mean that even if the loans get repaid I will not get any profit from them, yet still have the risk of capital loss and have money tied up for months on end? When they repay (If they are the loans I suspect) you should actually get penalty interest for the time you have had them probably plus the outstanding last months interest. Might not be as bad as you currently think, the old property loans have a habit of paying eventually but rarely on schedule.
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Post by df on Oct 27, 2018 15:50:06 GMT
I seem to have a number of loans that are all A+ rated that have produced no return. Examples are: 46093, 47650, 47572, 47551, 44217 and 17889 They are property loans that I was allocated in March/April just before the last payment was due. So after paying the capital plus accrued interest plus servicing fee, there is zero profit. After 6 months the capital has not been repaid but the loans have not been downgraded or defaulted. Does this mean that even if the loans get repaid I will not get any profit from them, yet still have the risk of capital loss and have money tied up for months on end?Before the change on 18th Sept 2017, when we could invest manually, I had no property loans in my FC loan book. Immediately after that date my returns were invested in some of these with very short term left. None of them repaid on time, but eventually most disappeared from "my loan parts" list. I've no idea whether they were repaid in full or added to rapidly growing "bad debt", I've given up on monitoring FC loans (to much work for no benefit), but just had a look now - one property A+ is still there - it was meant to complete in Feb 2018. The latest update was at the beginning of this month: "Our adviser is still conducting their investigations regarding the property generally and regarding the potential partnership with the developer. As part of these investigations, they are continuing to liaise with the borrower and their solicitor. We will update investors at the end of October." - whatever this potential partnership means, I don't expect any capital repayment in foreseen future. To answer your question - it can go either way. You may get a portion of your invested capital beck, may get it all or if you are very lucky you may get some interest as well. You never know, but the other problem is that during this time your invested cash is idle.
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blender
Member of DD Central
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Post by blender on Oct 27, 2018 16:27:19 GMT
I seem to have a number of loans that are all A+ rated that have produced no return. Examples are: 46093, 47650, 47572, 47551, 44217 and 17889 They are property loans that I was allocated in March/April just before the last payment was due. So after paying the capital plus accrued interest plus servicing fee, there is zero profit. After 6 months the capital has not been repaid but the loans have not been downgraded or defaulted. Does this mean that even if the loans get repaid I will not get any profit from them, yet still have the risk of capital loss and have money tied up for months on end? Most of these loans will eventually repay late. Then you will receive the last scheduled interest payment, the capital repayment and the original rate of interest plus 2% for the late period. Some may default and there may be some loss, but you only need to worry when FC default the loan (a bad sign).
Edit: I assume 17889 should be 17899 should have repaid in June.
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markr
Member of DD Central
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Post by markr on Oct 27, 2018 16:50:52 GMT
I think part of the problem may be FC's decision to get out of property loans. In the past, late running development loans would in all likelihood have been refinanced on the FC platform, with cashback incentives and/or higher rates if needed to ensure they filled. For quite a few of my late property loans, the comments reveal that delays in obtaining external finance are causing the hold up.
Of course, borrowers struggling to refinance may turn to other P2P platforms, so lenders who abandoned FC previously may end up lending to the same borrowers anyway.
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Post by Badly Drawn Stickman on Oct 27, 2018 17:19:20 GMT
I think part of the problem may be FC's decision to get out of property loans. In the past, late running development loans would in all likelihood have been refinanced on the FC platform, with cashback incentives and/or higher rates if needed to ensure they filled. For quite a few of my late property loans, the comments reveal that delays in obtaining external finance are causing the hold up. Of course, borrowers struggling to refinance may turn to other P2P platforms, so lenders who abandoned FC previously may end up lending to the same borrowers anyway. Good points, the problem might well be that refinancing is likely to cost them more than simply paying the penalty interest.
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