Post by mikes1531 on Mar 15, 2014 2:57:55 GMT
There is a loan that reached the end of its term about three weeks ago. We have been told that the borrower wishes to renew the loan and has signed and returned the appropriate paperwork. SS have said they will renew the loan as soon as the lender pays the outstanding interest/fees for the original term. The renewal loan has shown in the 'Pipeline' for a couple of weeks now, with various expected renewal dates that fail to happen. The current comment for this loan is "Expecting to be renewed 13th March." By Monday, the loan will have less than a week before the last date that lenders should receive their money back. If the lender fails to come up with what they owe, there's clearly no way that SS could arrange an auction of the security soon enough for lenders to receive their money on time directly from a sale.
I think it's time for SS to provide another update here. SS have asked existing lenders whether they want their money
back now or if are willing to participate in the renewal loan. In addition to a general status update, I would
like to know what proportion of lenders are willing to renew because, if
it's high, then there would be very little of the loan needing new
lender participation, so there would be little point in me holding funds
available for that potential opportunity if it's going to be tiny.
In addition, I note that the description of the loan purpose was "Property developer required short term funds to complete a new build project. Going to refinance on completion." Does SS have any information on the state of the new build project? I ask because I wonder how close it is to completion and refinance, and how likely it is that the loan, if renewed, will end up being repaid after a very short period. (I do realise that any indications of this nature are not particularly definitive. The West**** Se****d loan almost wasn't renewed because the borrower thought they were very close to selling the boat, but it was renewed to take pressure off the sale process. That was over two months ago and that sale obviously hasn't happened yet. Is it even still in prospect?)
Other lenders, I'm sure, also would be interested in knowing what's happening here because it will provide some insight as to how SS perform, and what exactly happens, when a loan reaches maturity and the borrower doesn't redeem their security according to plan.
I think it's time for SS to provide another update here. SS have asked existing lenders whether they want their money
back now or if are willing to participate in the renewal loan. In addition to a general status update, I would
like to know what proportion of lenders are willing to renew because, if
it's high, then there would be very little of the loan needing new
lender participation, so there would be little point in me holding funds
available for that potential opportunity if it's going to be tiny.
In addition, I note that the description of the loan purpose was "Property developer required short term funds to complete a new build project. Going to refinance on completion." Does SS have any information on the state of the new build project? I ask because I wonder how close it is to completion and refinance, and how likely it is that the loan, if renewed, will end up being repaid after a very short period. (I do realise that any indications of this nature are not particularly definitive. The West**** Se****d loan almost wasn't renewed because the borrower thought they were very close to selling the boat, but it was renewed to take pressure off the sale process. That was over two months ago and that sale obviously hasn't happened yet. Is it even still in prospect?)
Other lenders, I'm sure, also would be interested in knowing what's happening here because it will provide some insight as to how SS perform, and what exactly happens, when a loan reaches maturity and the borrower doesn't redeem their security according to plan.
