Post by mikes1531 on Apr 16, 2015 22:46:55 GMT
I see that the borrower would like to sell some of the items and renew the loan on the rest. I wonder if they realise how difficult that could prove to be and/or how much they'll need to sell?
After 6+ months, the 70% LTV will have grown to about 75% based on accrued lenders' interest. If FS's accrued fees are a similar amount, that would make the LTV about 80% now. In order to reduce the LTV back to 70%, they'd have to sell half the security and net about 90% of its 'value'. Unless the items were valued very conservatively when the loan was made, that won't be easy to achieve on a 'forced sale' basis.
I wish them luck.
After 6+ months, the 70% LTV will have grown to about 75% based on accrued lenders' interest. If FS's accrued fees are a similar amount, that would make the LTV about 80% now. In order to reduce the LTV back to 70%, they'd have to sell half the security and net about 90% of its 'value'. Unless the items were valued very conservatively when the loan was made, that won't be easy to achieve on a 'forced sale' basis.
I wish them luck.