smee
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Post by smee on Sept 27, 2019 13:43:17 GMT
Three more of my loans have just (supposedly) been sold for less than their capital value. As usual it is stated that the borrower’s personal guarantee will be followed up together with a claim against the valuers’ insurance. There must be quite a few of these latter claims being pursued now. Has anybody heard of any success on that front, or is it a flying pig job?
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pip
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Post by pip on Sept 27, 2019 13:59:37 GMT
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Mucho P2P
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Post by Mucho P2P on Sept 27, 2019 14:09:01 GMT
Three more of my loans have just (supposedly) been sold for less than their capital value. As usual it is stated that the borrower’s personal guarantee will be followed up together with a claim against the valuers’ insurance. There must be quite a few of these latter claims being pursued now. Has anybody heard of any success on that front, or is it a flying pig job? From cases that I am aware of the outcomes, it is best to classify this method of approach as "limited/partial success". The reason being that the contracts with the borrowers in the first instance need to be water tight, and regrettably, in many cases they are not. This initial oversight and/or lackadaisical attitude is not conducive to highly successful outcomes when full payment is not received voluntarily from the borrower.
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coop
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Post by coop on Sept 27, 2019 14:47:12 GMT
I wouldn't hold your breath. I'm hardly the font of all knowledge but I've been investing in p2p on and off for at least 5 or 6 years and have never had a loan pay back a penny based on a 'personal guarantee'
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Post by mrclondon on Sept 27, 2019 15:23:08 GMT
Those SME loans on FC, FK, LC etc which had supported personal guarantees (supported = 2nd charge on residential property, charge on a share portfolio etc) have generally recovered something, although many years later.
An unsupported personal guarantee will not generally result in recoveries.
The vast majority of the VR's I've read seem perfectly valid based on the assumptions stated. The scenario most likely to yield a successful claim against valuers is development projects where the valuer massively underestimated the costs in relation to industry standards, and failed to justify the use of such low costs in the original VR.
I'm afraid that once the secured asset has been disposed of, the probability of any substantial further recovery is low, and its best to assume the outstanding capital will be written off completely at some point in the future.
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Mucho P2P
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Post by Mucho P2P on Sept 27, 2019 15:44:59 GMT
I wouldn't hold your breath. I'm hardly the font of all knowledge but I've been investing in p2p on and off for at least 5 or 6 years and have never had a loan pay back a penny based on a 'personal guarantee' There are, or I should say, I have had some PGs pay a loan back. The issue with PGs is that they are not always researched fully by the P2P company at the outset to validate whether they can actually pay back, and the PGs of large loans do have a tendency to dispose/transfer their funds/assets out of easy reach if it appears that the PG will be called upon. This lack of efficacy of PGs is due to lack of original DD of the P2P platforms not undertaking sufficient DD on the PG AND ensuring that the “worth” of the declared PG will be available AND still accessible if called upon.
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adrian77
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Post by adrian77 on Sept 27, 2019 16:00:34 GMT
I blame FS as much as the valuers here - what I always do with my larger developments is get a structural report - as to why FS don't seem to know what these are let alone use them defeats me. Good example 1960s tower block - the VR clearly state no such inspection has been done so if there is any structural defect whatsoever then I just can't see how the valuer can be successfully sued.
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