p2pstephan
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Post by p2pstephan on May 29, 2019 13:40:53 GMT
Five bling loan updates. One did not sell in auction. Four of them resulted in a capital loss (Circa 40%) all had a LTV of circa 60%. One is a loss of 54% capital and had a LTV of 50%. This is something FS should be good at. Investors earn a lower rate, (10%), because these loans are seen as safer loans. I am not in any of these loans but it does leave me thinking what the bling is going on. I am usually quite pro FS.
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arby
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Post by arby on May 29, 2019 14:05:21 GMT
Five bling loan updates. One did not sell in auction. Four of them resulted in a capital loss (Circa 40%) all had a LTV of circa 60%. One is a loss of 54% capital and had a LTV of 50%. This is something FS should be good at. Investors earn a lower rate, (10%), because these loans are seen as safer loans. I am not in any of these loans but it does leave me thinking what the bling is going on. I am usually quite pro FS. It would be interesting to see who valued the items, particularly if it was all from the same person, although I'm sure we'll never get that information....
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Godanubis
Member of DD Central
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 May 29, 2019 14:21:29 GMT
Five bling loan updates. One did not sell in auction. Four of them resulted in a capital loss (Circa 40%) all had a LTV of circa 60%. One is a loss of 54% capital and had a LTV of 50%. This is something FS should be good at. Investors earn a lower rate, (10%), because these loans are seen as safer loans. I am not in any of these loans but it does leave me thinking what the bling is going on. I am usually quite pro FS. I just buy my limit in Bling and sell at a profit usually the next day to those that did not get a chunk and are looking for a "Safer Investment ?"
Sorry chaps there ain't such a thing. It is all a big conspiracy to get your dosh. 
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Post by beepbeepimajeep on May 29, 2019 14:30:16 GMT
I was in some of these. All massive percentage losses, for example a 37% capital return on one which was only a £700 loan at "63.64% LTV". Apparently lower risk so was advertised as paying 10% if everything went to plan. Valuation miles off. What they gave this borrower of our money was miles away from what they should have given on these assets. Not even on the same planet
Small value only in £ terms.......so who cares. It doesn't matter. What it does do is highlight how little care FS have when throwing lenders money around. A lesson for anyone considering putting money in.
Complete and total <removed by mod>. FS don't mind though, these figures wont affect them.
The borrowers have laughed all the way to the bank with our money.
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Godanubis
Member of DD Central
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 May 29, 2019 14:52:52 GMT
It ia actually one of these things that attract little comment usually as the amounts individually involved is probably £25 less than a round of drinks.
Most will put it down to experience like buying a child's size five boot instead of an adults on the internet. (Dah Actually did this on sleepy night on EbaY)
Savy borrowers can take a nice shiny object they want to make money on to the nice folks at FS . Keep the dosh (no consequences). Buy it back at 30% of value and you have the object + 40% of their valuation. 
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michaelc
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Say No To T.D.S.
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Post by michaelc on May 29, 2019 15:14:21 GMT
Five bling loan updates. One did not sell in auction. Four of them resulted in a capital loss (Circa 40%) all had a LTV of circa 60%. One is a loss of 54% capital and had a LTV of 50%. This is something FS should be good at. Investors earn a lower rate, (10%), because these loans are seen as safer loans. I am not in any of these loans but it does leave me thinking what the bling is going on. I am usually quite pro FS. +1 I'm in the one that didn't sell. At least I know what to expect. The small absolute amount isn't the point. This is not a good advertisement for FS.
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r1200gs
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Post by r1200gs on May 29, 2019 15:27:32 GMT
Wake up, people!
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alanh
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Post by alanh on May 29, 2019 15:51:42 GMT
FS used to be my absolutely favourite platform by miles but I didn't like the way it was heading so got out ages ago, hence I am not in any of these loans. I am in Unbolted though and have experienced a lot of loan defaults there (as is to be expected on bling style loans). The difference though is that on Unbolted every underlying asset was sold for (often quite a bit) more than the loan value resulting in full return of capital and interest to the lenders. This shows quite a big difference in valuation methods between the two platforms and I fail to understand how FS can have got these valuations so far wide of the mark.
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adrian77
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Post by adrian77 on May 29, 2019 17:10:00 GMT
basically true although I think a bit harsh...
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 29, 2019 20:07:35 GMT
FS used to be my absolutely favourite platform by miles but I didn't like the way it was heading so got out ages ago, hence I am not in any of these loans. I am in Unbolted though and have experienced a lot of loan defaults there (as is to be expected on bling style loans). The difference though is that on Unbolted every underlying asset was sold for (often quite a bit) more than the loan value resulting in full return of capital and interest to the lenders. This shows quite a big difference in valuation methods between the two platforms and I fail to understand how FS can have got these valuations so far wide of the mark.This has been discussed many times on here, and we all understand exactly how. And why. 
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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 May 29, 2019 20:51:57 GMT
Simple solution all bling loans must have a committed buyer at loan issue at 90% of valuations and bling sold after 30days late. No defaults buyer happy and investors happy. Also 2% of FS interest on loans issued goes to a provision fund to guarantee at least 50% return of capital before recovery of deficit on property loans. Applies to all new Loans so there is a chance the better scrutiny of new loans means fewer defaults an larger build up of PF. We can all wish |
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SteveT
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Post by SteveT on May 30, 2019 7:00:33 GMT
Simple solution all bling loans must have a committed buyer at loan issue at 90% of valuations and bling sold after 30days late. No defaults buyer happy and investors happy. So all you're asking for is double-digit risk-free returns? Don't you think borrowers could get rather better than FS rates if their assets were all guaranteed to sell for 25% more than their loan?!
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adrian77
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Post by adrian77 on May 30, 2019 10:12:42 GMT
I think something like this is a good idea - in fact when the p2p market hits the short-term buffers, which I am sure it will, I can foresee long overdue legislation being bought in offer some similar sort of guarantee. Before I invested in FS I did not believe we would have so many property defaults realising less than 50% - wonder how Barnoldswick will fare ? Probably better than Whitehaven is about the only positive thing I can think of!
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arby
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Post by arby on May 30, 2019 11:05:26 GMT
I think something like this is a good idea - in fact when the p2p market hits the short-term buffers, which I am sure it will, I can foresee long overdue legislation being bought in offer some similar sort of guarantee. Before I invested in FS I did not believe we would have so many property defaults realising less than 50% - wonder how Barnoldswick will fare ? Probably better than Whitehaven is about the only positive thing I can think of! You think it's a good idea, others (me) could think it's terrible. The provision fund would be generated by taking x% interest as suggested, but in reality all this means is that I get less interest on the loans I'm investing in with the provision fund subsidising a bunch of loans I'd never consider touching. The entire purpose of individual loan selection and due diligence goes out the window. Such a model already exists and I use ratesetter for that; less interest, provision fund, my returns match the overall platform return. FS is a different model where we get to choose the risks we take. If people don't like that there are many other platforms out there that are better suited to them.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 30, 2019 12:25:17 GMT
I think something like this is a good idea - in fact when the p2p market hits the short-term buffers, which I am sure it will, I can foresee long overdue legislation being bought in offer some similar sort of guarantee. Before I invested in FS I did not believe we would have so many property defaults realising less than 50% - wonder how Barnoldswick will fare ? Probably better than Whitehaven is about the only positive thing I can think of! You think it's a good idea, others (me) could think it's terrible. The provision fund would be generated by taking x% interest as suggested, but in reality all this means is that I get less interest on the loans I'm investing in with the provision fund subsidising a bunch of loans I'd never consider touching. The entire purpose of individual loan selection and due diligence goes out the window. Such a model already exists and I use ratesetter for that; less interest, provision fund, my returns match the overall platform return. FS is a different model where we get to choose the risks we take. If people don't like that there are many other platforms out there that are better suited to them. I fully agree with your sentiments in theory. But where it falls down in practice is when dealing with these cowboys, DD becomes a lottery when their operational integrity is so unprofessional as to be more or less worthless.
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