iRobot
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Post by iRobot on Nov 22, 2021 21:46:18 GMT
One update on the 19th and one on the 22nd still waiting for a further eight updates. Outstanding/rolled interest 12k over ten loans, one update on the negative side alluding to an over valuation off circa one million. Seems like a repeat of TC, AC, HNW and many others it is only after three or four years that you get a realistic valuation of your investment in p2p. I have 8 with rolled interest of these, one has partially repaid, two are about to fully repay, two have been re-possessed and are for sale, two are very low LTV and unlikely to not be recoverable. The other one is slightly worrying but SOMO seem to be pursuing it fairly vigorously. I've been with them since 2016 and so far all of my loans have been fully repaid with all interest (eventually). I hope the over valued one has valuation insurance, they usually do, although I've never seen it used.Rare but not completely unknown: " Administrators winding-up collapsed peer-to-peer property lender Lendy have successfully claimed £625,000 against a valuer for a property which may have been £2m over-valued." The 30% return on the over-valuation amount doesn't give much reason for cheer but it was a settlement rather than being court awarded and I suspect (hope?) BC will show a bit more grit when it comes pushing for a court hearing. (Assuming it turn out that there's a case to be answered.) For those that haven't read it before, some interesting comments on P2P valuations - much covered at the time the article was released, but they may be of interest to newer readers here.
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iRobot
Member of DD Central
Posts: 1,656
Likes: 2,449
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Post by iRobot on Nov 22, 2021 21:52:24 GMT
Oh dear. Looks like the proud claim "... Zero capital losses and 100% recovery rate ..." is under pretty serious threat... Never a question of 'if' - only ever a question of 'when'. (And there's a little bit of conspiracy theorist in me that wonders if BC haven't previously absorbed some smaller losses down the years just to hang on to that '100%' claim )
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Greenwood2
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Post by Greenwood2 on Nov 24, 2021 9:38:24 GMT
Another load of updates dated 23rd.
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mah
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Post by mah on Nov 26, 2021 16:47:16 GMT
Oh dear. Looks like the proud claim "... Zero capital losses and 100% recovery rate ..." is under pretty serious threat... One has been outstanding since June '17 - just 6 months after draw down and No Updates since Aug ! They previously used to send updates via emails (after signing a NDA), but have recently stopped responding to emails even. Signs are Not Good at all.
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Post by c64 on Nov 26, 2021 17:24:00 GMT
I think the "signs" are OK. They have never prioritised communication with investors. It's a bit off-putting, but they seem to be busy earning me money instead. I have half a dozen defaulters outstanding, all of which are making slow but tangible progress through courts, eviction, sale etc. I've had another half dozen successfully retrieved prior to Covid, and the process seem to be catching up a bit now the eviction ban is gone. Their results (to March 2020, admittedly) are OK and they are opening a new office: www.p2pfinancenews.co.uk/2021/09/02/somo-reports-record-first-half-and-expands-with-london-office/ Their rates have dropped a bit since they were a minnow, but there's supply and demand for you. They are gouging me a bit on the spread between (published) borrower and (my specific) lender rates but IMHO they are earning it with the recovery work.
Maybe wrong. Things change. Could explode in a offal-sack of unrecovered debt, could just slowly squeeze me out if they get too big for their boots, but I am OK with them if they carry on like this rather than spend their time and effort on a snazzy platform and hand-holding emails. The caveman light-bulb branding is though.
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alibaba
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Post by alibaba on Nov 26, 2021 18:39:46 GMT
I am waiting with bated breath, if my seven outstanding defaulters are paid I will be back into Somo with larger investment. Unlike HNW who keep trumpeting how good they are whilst writing off 10k of my capital not to mention interest.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Nov 26, 2021 23:04:20 GMT
I think the "signs" are OK. They have never prioritised communication with investors. It's a bit off-putting, but they seem to be busy earning me money instead. I have half a dozen defaulters outstanding, all of which are making slow but tangible progress through courts, eviction, sale etc. I've had another half dozen successfully retrieved prior to Covid, and the process seem to be catching up a bit now the eviction ban is gone. Their results (to March 2020, admittedly) are OK and they are opening a new office: www.p2pfinancenews.co.uk/2021/09/02/somo-reports-record-first-half-and-expands-with-london-office/ Their rates have dropped a bit since they were a minnow, but there's supply and demand for you. They are gouging me a bit on the spread between (published) borrower and (my specific) lender rates but IMHO they are earning it with the recovery work.
Maybe wrong. Things change. Could explode in a offal-sack of unrecovered debt, could just slowly squeeze me out if they get too big for their boots, but I am OK with them if they carry on like this rather than spend their time and effort on a snazzy platform and hand-holding emails. The caveman light-bulb branding is though. I agree. SoMo have never been great on the communications front, which is a pity, but, by contrast, are top of the tree when it comes to recoveries. Other platforms are generally rather lily-livered when it comes to recoveries and such is the degree of their bias in favour of borrowers that their staff can't stop rabbiting on with the same tired excuses for why borrowers are not making payments to lenders, but SoMo is much more forthright when it comes to getting non-compliant borrowers to pay up. It's for that reason they remain one of my very favourite platforms.
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