bugs4me
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Post by bugs4me on Jan 7, 2014 22:22:13 GMT
I think I remember reading somewhere that as a general rule AC have a 2 month deadline 'penciled in' for all loans, but think this might be open to some interpretation and might have been thrown out in the re-write of the site literature. My guess is it's just some non-specific, legally acceptable, mild bullying on AC's behalf, or pointing the other way, some non-specific, legally acceptable, appeasement for the lenders! Call me a cynic... that banana looks good, can I have a bite? If AC's fee's are (AIUI) still just a % of the loan with no 'call out fee' then it does leave them, and us, open to abuse. I'll probably be following oldgrumpy on this and be more selective. Can't see the point in bidding for anything less than 12 months, maybe 24 if there's going to be a couple of months delay. Appreciate it's outside of the control of AC but it certainly bites into the returns. Better waiting until the underwriters (if there are any with a particular loan) decide to offload. Then it's starts earning from day one. Don't think the 'abuse' is intentional, it's just the way the system works.
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Post by batchoy on Jan 7, 2014 22:42:09 GMT
Don't think the 'abuse' is intentional, it's just the way the system works. I think it is more to do with how some solicitors chose to make the system work in order to justify their fees. As I mentioned earlier I've just done a private, chain free, cash house sale, my solicitor felt that it could have been completed in a week or a couple of weeks at most. The buyer's solicitors quoted 12 weeks and that's what it took.
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bugs4me
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Post by bugs4me on Jan 7, 2014 22:55:57 GMT
Don't think the 'abuse' is intentional, it's just the way the system works. I think it is more to do with how some solicitors chose to make the system work in order to justify their fees. As I mentioned earlier I've just done a private, chain free, cash house sale, my solicitor felt that it could have been completed in a week or a couple of weeks at most. The buyer's solicitors quoted 12 weeks and that's what it took. I know someone that exchanged and completed on a house sale in one day. It can be done but it's not in the interests of the legal profession to do so. They always remind me of taxi's with the meter permanently running.
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mikes1531
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Post by mikes1531 on Jan 7, 2014 23:28:10 GMT
This is the first I've heard of a "longstop date" - which implies someone (AC ? ) has set some kind of deadline on the legal process. I think I remember reading somewhere that as a general rule AC have a 2 month deadline 'penciled in' for all loans, but think this might be open to some interpretation and might have been thrown out in the re-write of the site literature. My guess is it's just some non-specific, legally acceptable, mild bullying on AC's behalf, or pointing the other way, some non-specific, legally acceptable, appeasement for the lenders! Call me a cynic... that banana looks good, can I have a bite? If AC's fee's are (AIUI) still just a % of the loan with no 'call out fee' then it does leave them, and us, open to abuse. I received a similar -- possibly the same -- email. I also hadn't heard of a longstop date before, so I asked Assetz a question. As is so consistently the case with AC, I received a very prompt and informative reply, which said...
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agent69
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Post by agent69 on Jan 12, 2014 10:52:02 GMT
On TC members get access to a drop box that lists all the loans which haven't drawn down, along with details of the current status and estimates of when draw down will occur. Any reason why AC can't do the same thing?
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Post by chris on Jan 12, 2014 12:02:00 GMT
On TC members get access to a drop box that lists all the loans which haven't drawn down, along with details of the current status and estimates of when draw down will occur. Any reason why AC can't do the same thing? Developer time is the only constraint. We have plans to do this, but also have many other ideas on how to improve things. We're currently still a small team and therefore can only get so much done at a time. H1 is going to be incredibly busy in terms of development with lots of ambitious new features and improvements planned, Q1 should also see several key improvements to how we manage and run the primary markets that will hopefully address most if not all current lender grumbles.
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mark
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Post by mark on Jan 15, 2014 12:26:19 GMT
As we move into mid-January and still waiting for the drawdown of Lend2 let 7 for 3 months, Birmingham and Slough for 2 months. Taking into account all the reasons / excuses for drawdown delays from AC about legals, 3rd party delays, chtistmas etc and obvious now that AC's system is open for abuse by borrowers who can tie up lenders substantial funds for months on end with the toothless threat of a longstop date either ignored by borrowers on not pursued by AC. With all the delayed drawdown loans to date, has any lender ever received any percentage of any penalty or drawdown extention fee. I guess the answer is no. Approx 5 months ago, a loan applicant decided not to drawdown a completed loan. AC stated they were charging the ' lender ' a penalty fee which would be paid to lenders to compensate for their dead money. In late December, I was informed by AC that they were still 'negotiating' with the borrower. How much negotiation is needed for this.
personally, with substantial dead money awaiting draw downs and the resulting reduction in returns In future, I will invest through the aftermarket if at all.
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oldgrumpy
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Post by oldgrumpy on Jan 15, 2014 13:14:45 GMT
There seems to be a certain kind of applicant who is unconcerned about whether or not the lenders lose out. That kind of applicant (and I think there are several of this "persuasion" currently) is trading with AC, not the individuals providing the money, so may well be unaware of the consequences of long delays. Although AC/lenders may occasionally lose out, I think a firmer stance needs to be taken, and emphasised from the beginning of the application process, especially on short term loans such as six to twelve month bridging loans, and the prospective borrower should be told that if drawdown is not taken within one month (two months is too long on short-term loans) the offer of a loan will be withdrawn (or a surcharge applied). This will put the onus on the borrower (and his legal representatives) to get on with it if they really want the loan. Some agreements from third party interests will have to be obtained before the loan is requested and the auction started. Leeway can be provided by AC on an individual case basis but needn't be openly publicised (except to lenders involved) or automatic. I too have modest amounts on nine finished auctions, the one waiting since 25 October. I am aware that AC have helped regular lenders with shadow bid facilities, but they are (rightly) limited, and are soon fully utilised when we have to wait up to three months on some ended auctions. That's my kilo of fruit's worth!!  PS Don't retire to Paignton  |
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Post by batchoy on Jan 15, 2014 14:18:45 GMT
Wot no Bananas!
I too have shares in a number of finished auctions dating back to October, and would dearly love see them drawn down and earning however personally I would far prefer to be moaning on the AC board about draw down times because of delays in getting all the security in place, than participating in the moans on the FC because loans have defaulted and any perceived security have proved valueless.
The delay on L2L7 does not surprise me the current time scales being quoted by conveyancers is 8-12 weeks (though my solicitor's view is that there is only 16 hour work involved and a simple sale/purchase can be done in 48 hours) however some of the other loans I find much more surprising given the urgency intimated in the Credit Reports and taking a cynical view wonder is AC is being treated as a backstop and the borrower's intention is actually not to draw down the loans unless they absolutely have to.
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Post by andrewholgate on Jan 15, 2014 15:24:48 GMT
This is becoming a regular pain in the....
I've been quiet on the forum because I have been pushing to get these loans converted and also generate the new loans for the system.
I will update tomorrow on drawdown timescales, and I will also have more details on loans to come this month.
A
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mikes1531
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Post by mikes1531 on Jan 15, 2014 18:49:10 GMT
I will update tomorrow on drawdown timescales, and I will also have more details on loans to come this month. Thanks. We'll look forward to that.
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gnasher
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Post by gnasher on Jan 15, 2014 19:20:54 GMT
Nothing is perfect in this world. For secured loans with a decent rate of interest I believe we just have to see drawdown delays as inevitable - sorry guys & gals, that's the way it is. Some will be quick, some will take a while. You just have to take that into account when making your bid.
Those p2x platforms that manage to achieve the lowest average delay expressed as a % of the loan period, will over time get more lenders interested. They may want to employ a variety of methods to do that and I wish them every success. However there will always be borrowers who will seek to use the system to their advantage.
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mark
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Post by mark on Jan 17, 2014 10:56:15 GMT
I will update tomorrow on drawdown timescales, and I will also have more details on loans to come this month. Thanks. We'll look forward to that. Are there any updates yet on the delayed drawdown timescales please anyone
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mark
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Post by mark on Jan 17, 2014 15:22:56 GMT
This is becoming a regular pain in the.... I've been quiet on the forum because I have been pushing to get these loans converted and also generate the new loans for the system. I will update tomorrow on drawdown timescales, and I will also have more details on loans to come this month. A not sure what happened to the weekly drawdown update emails or the update on this forum due a few days ago.
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j
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Post by j on Jan 17, 2014 16:47:13 GMT
This is becoming a regular pain in the.... I've been quiet on the forum because I have been pushing to get these loans converted and also generate the new loans for the system. I will update tomorrow on drawdown timescales, and I will also have more details on loans to come this month. A not sure what happened to the weekly drawdown update emails or the update on this forum due a few days ago. would also be good to have an update on upcoming loans as intimated earlier
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