Ace
Member of DD Central
Posts: 4,551
Likes: 5,040
Member is Online
|
Post by Ace on May 31, 2023 12:40:15 GMT
Any info regarding number of loans receiving additional % from the expected end date? I can't be totally sure that I've checked all of mine, but all of the ones that I did check did receive the extra 2% for the overrun period. CP do seem to be pretty hot on this.
|
|
Ace
Member of DD Central
Posts: 4,551
Likes: 5,040
Member is Online
|
Post by Ace on Jun 7, 2023 6:56:46 GMT
Another 2 projects are in default, so now to 22 (41 defaulted, of which 19 have since repaid).
|
|
|
|
Post by overthehill on Jun 7, 2023 15:04:57 GMT
Loan end dates of my 6 worst defaults. I stopped investing 1 year ago and won't restart until these clear. Also I've never been over-excited about platforms who choose no secondary market, opinions on motives vary !
01/06/21
10/12/21 28/12/21 29/09/22
08/10/22 16/06/22
|
|
rocky1
Member of DD Central
Posts: 1,070 
Likes: 1,847
|
Post by rocky1 on Jun 7, 2023 16:49:42 GMT
only 1 loan left for me start date 31.1.2019 end 1.11. 2020 borrower bankrupt,receivers appointed 18 months ago to foreclose and seize back control of property. last update CP trying to obtain lawful use as HMO as valuation is not enough with present conditions . awaiting county council decision before remarketing property blah blah blah.so still no end in sight on a maximum 15 month loan.not much confidence in CP shield and 1st charge spiel at moment.
|
|
Ace
Member of DD Central
Posts: 4,551
Likes: 5,040
Member is Online
|
Post by Ace on Jun 8, 2023 6:58:07 GMT
Another 3 projects are in default, so now 25 (44 defaulted, of which 19 have since repaid).
|
|
|
|
Post by overthehill on Jun 9, 2023 15:00:26 GMT
With the number of defaults rising, the number of disgruntled investors will also rise due to the time it takes to firstly find and then organise project update messages in a re-usable chronological order.
|
|
rocky1
Member of DD Central
Posts: 1,070
Likes: 1,847
|
Post by rocky1 on Jun 9, 2023 15:45:49 GMT
for me the ease with which p2p platforms extend and extend loans and the updates that come with this before finally defaulting a loan is what pis*es me off as a lender can mostly anticipate this even with the little bit of info we are given. the platforms seem to keep it going for as long as possible and then just call in the receivers {charged to us of course}and continue to churn out loans because growth is the main objective here.ok DD seems well and good when it comes to presenting these loans but what are they doing when it comes to loan repayments/collections.how many people do they have working on this or is just leave it and we will appoint receivers when the time comes.of course we will still get our fees/costs etc and the lenders can pay for every thing along the way.
|
|
metoo
Member of DD Central
Posts: 538
Likes: 407
|
Post by metoo on Jun 10, 2023 2:19:21 GMT
for me the ease with which p2p platforms extend and extend loans and the updates that come with this before finally defaulting a loan is what pis*es me off as a lender can mostly anticipate this even with the little bit of info we are given. the platforms seem to keep it going for as long as possible and then just call in the receivers {charged to us of course}and continue to churn out loans because growth is the main objective here.ok DD seems well and good when it comes to presenting these loans but what are they doing when it comes to loan repayments/collections.how many people do they have working on this or is just leave it and we will appoint receivers when the time comes.of course we will still get our fees/costs etc and the lenders can pay for every thing along the way. Rocky, I don’t agree. I am sure recoveries are rather important to CP, and they are proactive in trying to resolve loans that go bad. Unfortunately these things really do take a long time, and sometimes there may not be a full recovery. Lenders don’t pay for receivers, though they are paid first from recovery proceeds. They are not the first resort, only being appointed when necessary, precisely because they are expensive.
|
|
rocky1
Member of DD Central
Posts: 1,070
Likes: 1,847
|
Post by rocky1 on Jun 10, 2023 4:59:59 GMT
what do you think recovery proceeds are ?are they what is left of the original loan minus costs/fees/legals/etc?.look at LY,MT,FS,etc to see what recovery proceeds are and who pays for it all.you will see lenders distribution right there at the bottom of the pile.platforms make a lot of money from loan extensions and default fees lenders while continue to accrue interest. unless there is a full recovery that interest is the first thing thats gone
|
|
metoo
Member of DD Central
Posts: 538
Likes: 407
|
Post by metoo on Jun 10, 2023 15:15:42 GMT
what do you think recovery proceeds are ?are they what is left of the original loan minus costs/fees/legals/etc?.look at LY,MT,FS,etc to see what recovery proceeds are and who pays for it all.you will see lenders distribution right there at the bottom of the pile.platforms make a lot of money from loan extensions and default fees lenders while continue to accrue interest. unless there is a full recovery that interest is the first thing thats gone It is true that CP can deduct all out-of-pocket expenses, receivers' fees, etc from recovery proceeds, plus 10% of the recovery amount (Terms 16 viii). However, it is in CP's interests to try to deliver the best outcome they can for lenders. Otherwise their business will not succeed. The founders stand to profit from the value of their shares if the business succeeds, rather than from covering the cost of loan recoveries in those loans that go bad. The quality of loans on CP is generally much better than those on LY, MS, FS, and the alignment of interests with lenders is better. The borrower interest rate on those other platforms was substantially higher, so they were high-risk lenders of last resort. People should definitely understand the risk warnings, and only invest in what they understand and are comfortable with.
|
|
rocky1
Member of DD Central
Posts: 1,070
Likes: 1,847
|
Post by rocky1 on Jun 10, 2023 16:46:57 GMT
we are talking p2p platforms in general and fully understand the risks of p2p lending.after many years of lending to p2p including CP from 2016 when you were talking less than 200 lenders and CP have been our most profitable over those years. kuflink have now engaged a law firm who specialize in mortgage and debt recovery to engage with borrowers much earlier to try and ensure that loans are repaid on time.maybe a few more platforms should do the same so that they can continue on the growth side of things.do platforms have the expertise/people to do what kuflink propose this law firm will do. ref P2PFN 5.6.23
|
|
metoo
Member of DD Central
Posts: 538
Likes: 407
|
Post by metoo on Jun 10, 2023 17:30:54 GMT
There was an email from Kuflink's CEO explaining about how they use the law firm on 1 Jun. Kuflink does quite a lot of pure bridging loans. I think this approach is relevant to bridge loans, where the borrower will need a refinance at term. Impressed by this. Good to focus the borrowers on a how they will exit these loans, particularly where interest is retained. Some use lawyers, some engage directly with the borrowers, others may have been rather naive or lax.
Development loans have different issues, but I think CP is proactively engaged with the progress of their loans. Lawyers aren't much use in the first instance there. Over-runs are very common with property development in general. The few that end up in receivership have specific issues.
What matters first is the individual loan risk. Many of the P2P platforms that have already failed had extremely high risk loans, as well as incompetence.
|
|
rocky1
Member of DD Central
Posts: 1,070
Likes: 1,847
|
Post by rocky1 on Jun 10, 2023 17:51:27 GMT
totally agree good luck with your investments for now and the future.
|
|
metoo
Member of DD Central
Posts: 538
Likes: 407
|
Post by metoo on Jun 10, 2023 18:01:29 GMT
Good luck to you also. Interesting times.
|
|
|
|
Post by lotus_eater on Jun 17, 2023 13:11:22 GMT
10k out of 16k invested late now. Not much been repaid at all lately. I'm still fairly worried about this platform, even though I don't have a great deal invested with them. Ace, are you STILL hot on these guys?   |
|
