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Post by ogwellian on Jul 10, 2015 10:33:09 GMT
Just two payments left on a couple of my 12 month property loans.
What happens at maturity if the properties secured on the loans are incomplete and/or unsold and the borrower can't repay the capital?
Is there any way of finding out how the developments are faring?
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adrianc
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Post by adrianc on Jul 10, 2015 11:23:06 GMT
Just two payments left on a couple of my 12 month property loans. What happens at maturity if the properties secured on the loans are incomplete and/or unsold and the borrower can't repay the capital? Is there any way of finding out how the developments are faring? The Harrogate saga gives the only indication to date. The loan will roll on at the same rate, and eventually be paid back. A series of comments on the loan will give - and break - new deadlines, and "reasons" will come and go. But it will - eventually - be paid. Best way to find out how it's going is local knowledge, I'd guess. Once they start to market the development, Rightmove'll tell you who the EA is, then a quick phone call... If you're local, you could always pretend you want to buy, go round and admire the tap or drawer handle that you've paid for.
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am
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Post by am on Jul 10, 2015 19:54:20 GMT
The 3rd tranche of Harrogate is now (2 days) late. FC were promising repayment by the end of the week, which I interpreted as today.
I think I saw mention of a penalty rate on loan extensions on one of the more recent property loans.
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baldpate
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Post by baldpate on Jul 10, 2015 20:52:39 GMT
The exact statement on Harrogate 3 is "Further sale proceeds are expected by the end of the week which fully repay all debt on this scheme in full."
Very carefully worded. I interpret it as : the borrower expects to receive further sale proceeds by the end of the week. If that expectation is met, the necessary funds may reach FC before the loan is actually "Late" (at the moment the payment is only 2 days overdue). So I don't hold out too much hope for any extra interest.
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