Defaulted Lexus

Very recent update indicates that there were previously unidentified issues with the vehicle that meant it sold for less than the loan amount, however FS has decided to cover the shortfall and return all capital and interest to lenders.

Well I was writing a long post but having looked at the site its all irrelevant as loan has been recovered already

Car sold for a loss due to unspotted issues but FS have put their hand in their pocket to cover shortfall

So looks like your first experience is a quick & positive one

Well done fundingsecure, once again

And see this thread p2pindependentforum.com/post/53406/thread which tracks further defaults

Also if you look at the past loans list on FS and toogle the defaulted column to show recoveries & defaults you can see the relevant loans and access any comments

In answer to you specific questions

FS will try & sell the car whether privately or through auction and interest will continue to accumulate at standard rate until they achieve this. Any recovery will then be distributed though if sold through auction there can be a delay in this and interest may not accumulate from sale to payout.

Generally usually about 1-2 months, and as you can all but 6 loans have been recovered (occassionally FS have put their hands in their pocket to cover a shortfall)

Longest recovery was proabably about 5 months (excluding those that didnt) the Print, worst recovery is the Lubins 70% (to date), no complete loss though the second lot of Lubins didnt technically recovery anything, FS just paid out 70% rather than wait to sell them as the previous lot had gone so slowly.

(As i wrote though might as well post)

What a pleasant experience... but dangerous as definitely they can't do it for every default. 

I wonder who bought it and how it was so quick. 

Would fundingsecure have any recourse against the borrower if the borrower was aware of such an issue?  Or is it up to FS to check all security with a fine-tooth comb?  And if they miss something like this it's their own problem -- or ours?

AIUI, if you try to sell a property with 'hidden' defects you know about, you are required to disclose those to prospective buyers.  Does the same principle apply here?  Or is this totally different because the borrower isn't officially selling the item to the pawnbroker -- or are they?

Seems like an area open to abuse.