j
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Penguins are very misunderstood!
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Post by j on Feb 10, 2014 22:28:34 GMT
Was in the old one myself then cancelled my original bid/pre-bid/shadow bid or whatever it's called these days after the long wait. The only upside is the length (5 yrs), but then again, the borrower will probably refinance somewhere along the line. Good luck to those who will take a punt on it. Was in the original one, unlike the Brummie Bridge, had the feeling that the borrower was possibly getting the run around from a third party, so cancelled my original bid when the loan was reverted and popped in a larger pre-bid. With it changing from a regular purchase to an auction it will be interesting to see how this one progresses and at 336 th in the queue whether I get part of the loan if the borrower does not manage to purchase all the properties. He might get lucky & get them cheaper at auction, allowing the loan to go ahead in full. Good luck to him. I'll still give it a miss though & reserve some money for the aftermarket on the 2 big upcoming loans.
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Post by mrclondon on Feb 10, 2014 23:09:22 GMT
With it changing from a regular purchase to an auction it will be interesting to see how this one progresses and at 336 th in the queue whether I get part of the loan if the borrower does not manage to purchase all the properties. Presumably, to be fair, everyone will have to take a proportionate reduction (1/3 or 2/3rds) depending on if and how many he gets. Page 7 of the credit report confirms "The value of bids received on this loan will be pro-rated to the actual amount required to borrow once the outcome of the property auction is known."I’ve added an extra (larger) pre-bid on the basis that I’m likely to be scaled back, and even if all 3 apartments need funding, the loan is still sufficiently small that there won’t be much overhang on the secondary market to prevent an offload of the exposure I don’t want. After a quick skim through the report, the only thing which looks a bit odd is the cap on our funds is £90k per property, yet the 3 bed apartment is going to be worth more than the two beds (both intuitively, and on a rental multiple basis).
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mikes1531
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Post by mikes1531 on Feb 11, 2014 3:50:55 GMT
After a quick skim through the report, the only thing which looks a bit odd is the cap on our funds is £90k per property, yet the 3 bed apartment is going to be worth more than the two beds (both intuitively, and on a rental multiple basis). With the guide price on the 2-beds at £80-90k, they might not go for as much as the original agreed price of £112k, and that would give some scope for paying more for the 3-bed. The loan can't exceed 80% LTV, so that will be a factor for the borrower to consider. As for the £90k/property limit, maybe AC looked at the lack of pre-bids and wondered whether it might be impossible to raise more than £270k in time. After all, there's only £185k of pre-bids, and from where mine are in the queue I can see more than £6k of bids in front of mine in the queue that aren't funded at the moment. With the property auction going in just a couple of days, will the funding at that time restrict what the borrower can bid? Or might AC have committed to finding underwriting if the full amount is required as a result of the auctions and the loan funding falls short?
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Post by batchoy on Feb 11, 2014 8:33:19 GMT
With it changing from a regular purchase to an auction it will be interesting to see how this one progresses and at 336 th in the queue whether I get part of the loan if the borrower does not manage to purchase all the properties. Page 7 of the credit report confirms "The value of bids received on this loan will be pro-rated to the actual amount required to borrow once the outcome of the property auction is known."Hmm, I interpreted that slightly differently when I read it through last night to mean the whole pot not individual bids but on further reading you could be right. I wonder if chris had the foresight to program the system to be able to automatically reduce bids pro-rata based on a reduced loan size, or if it is a case of people promising something with out consulting - something I get all the time - and the will be a lot of manual data manipulation.
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Post by chris on Feb 11, 2014 8:36:33 GMT
Hmm, I interpreted that slightly differently when I read it through last night to mean the whole pot not individual bids but on further reading you could be right. I wonder if chris had the foresight to program the system to be able to automatically reduce bids pro-rata based on a reduced loan size, or if it is a case of people promising something with out consulting - something I get all the time - and the will be a lot of manual data manipulation. Erm, hate to admit that this is the first I've heard of it. Thankfully this shouldn't be more than half an hours work though.
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mikes1531
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Post by mikes1531 on Feb 11, 2014 14:42:43 GMT
Hmm, I interpreted that slightly differently when I read it through last night to mean the whole pot not individual bids but on further reading you could be right. I wonder if chris had the foresight to program the system to be able to automatically reduce bids pro-rata based on a reduced loan size, or if it is a case of people promising something with out consulting - something I get all the time - and the will be a lot of manual data manipulation. Erm, hate to admit that this is the first I've heard of it. Thankfully this shouldn't be more than half an hours work though. I suppose the process wouldn't be a lot different from the CC Leisure loan that had the big capital repayment which effectively reduced all lenders loan parts proportionally. In this particular situation, the whole issue might be a red herring, as lenders seem to be pulling their pre-bids in advance of the auction going live tonight. Last night there were £185k of pre-bids, at least £6k of which were un-funded, whereas now the pre-bid total is down to £114k. Most of the ones that have been pulled were in front of me in the queue, but £5.5k of those still in front of me are not funded at the moment. (I guess there's no need to cancel an unfunded pre-bid because it will automatically fail to be turned into a real bid when the appropriate time comes.) Unless AC have an underwriter waiting in the wings, things could be awkward at Thursday's auction if the borrower bids more than it turns out that lenders are willing to supply. I do hope this all has been discussed between AC and the borrower.
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Post by chris on Feb 11, 2014 14:44:37 GMT
Unless AC have an underwriter waiting in the wings, things could be awkward at Thursday's auction if the borrower bids more than it turns out that lenders are willing to supply. I do hope this all has been discussed between AC and the borrower. This has been discussed internally and we think we have a solution. The team will update you as soon as details are confirmed.
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Post by chris on Feb 11, 2014 16:36:56 GMT
Unless AC have an underwriter waiting in the wings, things could be awkward at Thursday's auction if the borrower bids more than it turns out that lenders are willing to supply. I do hope this all has been discussed between AC and the borrower. This has been discussed internally and we think we have a solution. The team will update you as soon as details are confirmed. Further to this, the loan has now been underwritten in full and the auction start pushed back until Friday. The borrower will then know exactly how much is needed and the loan, and prebids if over-subscribed, can be adjusted accordingly. A short auction will then follow before drawdown a few days later (27th at the latest).
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mikes1531
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Post by mikes1531 on Feb 11, 2014 17:00:34 GMT
Further to this, the loan has now been underwritten in full and the auction start pushed back until Friday. The borrower will then know exactly how much is needed and the loan, and prebids if over-subscribed, can be adjusted accordingly. A short auction will then follow before drawdown a few days later (27th at the latest). Sounds like a perfect solution!
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mikes1531
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Post by mikes1531 on Feb 13, 2014 16:04:20 GMT
This has been discussed internally and we think we have a solution. The team will update you as soon as details are confirmed. Further to this, the loan has now been underwritten in full and the auction start pushed back until Friday. The borrower will then know exactly how much is needed and the loan, and prebids if over-subscribed, can be adjusted accordingly. A short auction will then follow before drawdown a few days later (27th at the latest). This one (LtL7) may be about to disappear. It appears that the 3-bed flat went for £165k at auction . There's no indication of who the buyer was, but I suspect it isn't our borrower since the price is so much higher than he was hoping to buy the flat for. The other two auctions are still to come. (Lots 244 and 245.)
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alison
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Sanctuary!!
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Post by alison on Feb 13, 2014 17:12:34 GMT
Further to this, the loan has now been underwritten in full and the auction start pushed back until Friday. The borrower will then know exactly how much is needed and the loan, and prebids if over-subscribed, can be adjusted accordingly. A short auction will then follow before drawdown a few days later (27th at the latest). This one (LtL7) may be about to disappear. It appears that the 3-bed flat went for £165k at auction . There's no indication of who the buyer was, but I suspect it isn't our borrower since the price is so much higher than he was hoping to buy the flat for. The other two auctions are still to come. (Lots 244 and 245.) Thanks for the link - just like watching Homes Under the Hammer!!
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Post by mrclondon on Feb 13, 2014 19:37:25 GMT
This one (LtL7) may be about to disappear. It appears that the 3-bed flat went for £165k at auction . There's no indication of who the buyer was, but I suspect it isn't our borrower since the price is so much higher than he was hoping to buy the flat for. The other two auctions are still to come. (Lots 244 and 245.) The other two went for £137.5k and £142.5k so I guess you're right that this one will disappear completely. For reference the 3 bed was lot 157.
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mikes1531
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Post by mikes1531 on Feb 13, 2014 21:01:30 GMT
This one (LtL7) may be about to disappear. It appears that the 3-bed flat went for £165k at auction . There's no indication of who the buyer was, but I suspect it isn't our borrower since the price is so much higher than he was hoping to buy the flat for. The other two auctions are still to come. (Lots 244 and 245.) The other two went for £137.5k and £142.5k so I guess you're right that this one will disappear completely. I expect so. It's interesting that the original credit report suggested that the two 2-bed flats were worth £137.5k each, and that the borrower had managed to negotiate the lower £112k prices because he was making multiple purchases. These auctions seem to indicate that the originally stated values were about right, and that if the borrower had pulled off purchases at £112k he really would have had a bargain. And it looks like the seller was right to have been dragging their feet on the sale to our borrower. I presume we'll have an official announcement from AC in the morning.
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mikes1531
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Post by mikes1531 on Feb 14, 2014 12:44:59 GMT
The other two went for £137.5k and £142.5k so I guess you're right that this one will disappear completely. I expect so. It's interesting that the original credit report suggested that the two 2-bed flats were worth £137.5k each, and that the borrower had managed to negotiate the lower £112k prices because he was making multiple purchases. These auctions seem to indicate that the originally stated values were about right, and that if the borrower had pulled off purchases at £112k he really would have had a bargain. And it looks like the seller was right to have been dragging their feet on the sale to our borrower. I presume we'll have an official announcement from AC in the morning. Well, morning has come and gone, and I've heard nothing. I don't know what AC are waiting for. The auctions are over and either our borrower is committed to a purchase at the auction price and we'll have a loan with a much lower LTV or the borrower was outbid and there'll be nothing for him to borrow for -- or borrow against.
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Post by andrewholgate on Feb 14, 2014 13:37:50 GMT
We've been tied up with the Ha****y drawdown. I will get a response sorted as soon as I know more.
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