arby
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Post by arby on Feb 1, 2019 21:57:23 GMT
That is a nice wish but totally impracticable for property/development loans.Why? (Edit: within the context of multi-tranche loans on FS, which I think is what this discussion is about.) Not really, I was asking about selling part of the security but not repaying the highest ranking loans effectively increases the LTV of the loans.
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baldpate
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Post by baldpate on Feb 1, 2019 22:31:58 GMT
What I most object to about FS's policy re the repayment by partial sale of multi-tranche, non-defaulted loans is the fact that they seem to allow the borrower to take part of their profit from the early sales - i.e. not the whole of the sale realisation goes to paying down debt, rather just sufficient that the original LTV on the residual debt is maintained. Setting aside the issue of how the repayment should be distributed, it doesn't seem right to allow the borrower to take out any money before all debt is repaid (thus effectively treating them as having a higher priority than any secured lender). What if the developer uses funds from sales to pay down capital/interest but also requires them to continue the development? If he uses all his sale proceeds to pay off the loans, he'll have to take out new loans to finish the development. This issue seems less clear cut to me. You're right, locutus - I wasn't being sufficiently precise - it was the case of a completed development, where units are being sold piecemeal, that I had in mind
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Feb 2, 2019 3:27:34 GMT
That is a nice wish but totally impracticable for property/development loans.Why? (Edit: within the context of multi-tranche loans on FS, which I think is what this discussion is about.) Because defaulting too quickly where there are a multitude of reasons outwith the borrower’s control that can delay repayment only results in costly unnecessary administrative procedures which may result in reduced recovery of funds that would otherwise be paid. just look at the payment figures for 24 months nearly all loans are resolved within that time. Having inflexible default criteria benefits nobody. Measured appropriate action is the best route to optimise return. Payments within a live loan should have either been previously agreed or left to the borrower to decide what is best to reach the expected outcome. I am sure none of the borrowers set out to lose money.
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mullet
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Post by mullet on Jun 12, 2019 13:29:17 GMT
Extracts from recent updates below. The only thing I can gauge from this is if the update is before the 14th of the month you get a 'next 10 days' update, otherwise you get an 'end of <month>' update. Apart from that I have no idea how you can exchange on a property in January and still not have completed by June
just now
... there has been another slight delay and we are now expecting this to complete in the next 10 days.
10/05/2019
Unfortunately there have been further delays with the sale of the final two properties. We are waiting for the completion dates to be finalised - now expected to be within the next 10 days.
25/03/2019
After some further delays the final two sales are now expected to be completed by the end of March.
01/02/2019
Unfortunately there has been a further delay in completion of the final two sales.
14/01/2019
There has been a small delay in completing the sale of the fourth and fifth property - now expected by end January.
03/01/2019
The remaining two have exchanged but not yet completed. ... the remaining loans will be repaid once the funds for the final two properties have been received, expected within the next 10 days.
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Doc
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Post by Doc on Jun 27, 2019 17:46:24 GMT
'We have today received the funds from the sale of the fourth property. These will be used to repay in full the three outstanding loans (including this one) secured against the original facility. The remaining supplemental loans will remain active, secured against the remaining property, which is due to complete in July. They will continue to accrue interest until the final property is sold.'
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sarahcount
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Post by sarahcount on Jun 27, 2019 19:25:16 GMT
So FS received funds from sales of 3 of the 5 completed properties, and they chose to repay the oldest loans first, which includes various supplemental tranches, while leaving other higher-ranking, but still overdue, loans open. I am in those higher ranking loans and it seems there are ongoing issues with the sales of the last 2 properties. While I have little doubt they'll be sold and the money is safe, I'm wondering what FS would do in case of default? And yes, I'm fully expecting lots of answers to be "they'll do nothing"  Good to see that FS repaid in the correct order this time. Also looks like the supplementary loans might actually pay back for a change as they are secured on the final house. Everyone is quick to chastise FS for a whole host of things but here's a development loan no less that seems to be going to plan.
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Post by mrclondon on Nov 9, 2019 14:33:53 GMT
Final two tranches (1076693501 and 2630452153) repaid yesterday, with the update:
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