Post by captainconfident on Jan 9, 2019 11:15:43 GMT
I'm invested in a loan which defaulted in July 18. This was a development loan with two funding raises, and the collateral is not the development itself, which is in Estonia, but a separate property.
Unfortunately here is where Estateguru fall down in terms of communication. On the collateral property page, the value of the property is stated, but the 'property type', 'address' are not, and below is displayed a map of central Copenhagen! The link on the page "Appraisal Report" leads to a document in Estonian which is an appraisal of the development project and not the collateral property. Serves me right for allowing Autobid to select for me.
Updates on progress are vague. After 5 months, "As the borrower failed to fulfill his obligations to investors then EstateGuru was enforced to give security agent the task to start the realization process for the collateral property". Not enough information. I have stopped investing with Estateguru until I see whether their mysterious collateral is worth the 1.2m it is supposed to be.
I also have exact this loan in default. It is not untypical that an auction fails. I have some other projects where the auction failed the third time (after over 400 days late)! Anyway, in an conversation in preparation of my YouTube video tomorrow i heard also, that EG started also to search externally for other buyers (parallel to the auction). So, this could be another option so get the late loans back. Overall i think that they are still good and they have now 4 full time employees whose taking care about the defaults.
my late experience is somewhat mixed, as I run two different portfolios. One with some older loans and one mainly invested in the recent 9 months.
The thing is that the late and defaulted loans seem to have risen significantly in the recent month for the older portfolio. My overall performance is now somewhere in the range of 7~8% p.a. after defaults - which is okay but also puts EG in the range of many other P2P platforms. From the default numbers I would say they really need the extra people, so it's nothing the did in advance but for me it looks more they did it because they were forced by the credit quality. However, it's by far not that as in the "Lendy case" as I can now since some ~2 month see a stable rate of about 10% late loans for my matured/old portfolio.