greenslime
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Post by greenslime on Apr 13, 2016 19:28:20 GMT
Or more to the point, should I be bovvered?
Been investing in FS for 6 months so loans starting to reach maturity. At the top of my list of current investments are 1) a property that should have paid out 5 weeks ago - payment promised in 'April'; 2) ditto 3 weeks over - payment promised when borrower sells another property, sale 'delayed'; 3) a boat that should have paid out on the 8th - no info as to what's happening.
If they stagger on and eventually pay the principal and all the interest that's fine and dandy. But as a newbie I've no idea if this is normal jogging for FS or not, so am experiencing a very mild twitch. Can an old lag offer reassurance?
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SteveT
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Post by SteveT on Apr 13, 2016 19:50:00 GMT
A) it's far from unknown for FS loans to run over their due date, and there are relatively few examples of lenders losing money to date (as listed in the "All Current and Past Loans" list)
B) that's not necessarily any reason not to be concerned about these ones (until such time as they hopefully pay out)
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Post by mrclondon on Apr 13, 2016 20:08:56 GMT
Thus far only* non-property loans have defaulted on FS and recovery (or in rare instances partial write offs) typically take 2 to 6 months beyond the due date for the security to be realised.
On other p2p platforms property loans are only rarely resolved within 12 months of default, within 2 years is more typical, and could easily stretch to 5 years.
Although interest will continue to accrue whilst the loan is in default, unless the LTV of the loan is very low its unlikely it will all be covered by the recovery proceeds.
LATE EDIT:
* Not strictly true, "London Parking Spaces" has defaulted with an LPA receiver appointed. It will need a miracle for this one to be resolved quickly as the parking places can only be utilised by occupiers of the building above the car park. The building is in inner London, where many residents don't have cars.
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mikes1531
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Post by mikes1531 on Apr 13, 2016 21:16:26 GMT
3) a boat that should have paid out on the 8th - no info as to what's happening. FS typically give the borrower a week to respond after a loan matures, so I wouldn't necessarily expect to see an update appear before that. Obviously, if FS have heard from the borrower before that they would post an update sooner, so the fact that there's no info suggests that they haven't heard from the borrower yet.
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greenslime
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Post by greenslime on Apr 14, 2016 19:44:06 GMT
SteveT mrclondon mikes1531 - thanks. 'Don't panic, Captain Mainwaring' seems to be the answer, and it looks like the boat loan is heading for harbour.
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Post by Financial Thing on Apr 14, 2016 20:18:34 GMT
It will need a miracle for this one to be resolved quickly as the parking places can only be utilised by occupiers of the building above the car park. The building is in inner London, where many residents don't have cars.
Did FS state the spaces could only be used by residents? If true then these parking spaces will be worth less than the £20k valuation? 
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Post by mrclondon on Apr 15, 2016 10:55:29 GMT
It will need a miracle for this one to be resolved quickly as the parking places can only be utilised by occupiers of the building above the car park. The building is in inner London, where many residents don't have cars.
Did FS state the spaces could only be used by residents? If true then these parking spaces will be worth less than the £20k valuation? I've moved the replies to you (including mine), and the subsequent discussion into the London Parking Places thread
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