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Post by earthbound on May 2, 2016 21:44:22 GMT
Can anyone here point me in the right direction to substantiate mike1531's claim " ISTM that getting out in less than two years is likely to be difficult" anywhere on any platform that deal with first charge PBL'S ?
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stevio
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Post by stevio on May 2, 2016 21:44:36 GMT
PBLs may be for 6-12 months when they are made, but my experiences on another platform are that if a borrower fails to repay and it becomes necessary to call in the receivers, investors will have their money tied up for considerably more than 6-12 months. ISTM that getting out in less than two years is likely to be difficult. Unless the platform allows trading in distressed loan parts, of course -- at which point it might be possible to get out sooner, but it probably would be necessary to sell those parts at a discount. Hi @mike1531 if a borrower fails to repay, no receivers are involved, FS take possession of the asset , being the lender with a first charge, as happened previously on the SS site where the nursing home defaulted, SS dealt with that scenario in a very efficient way and no losses were incurred, indeed the defaulter even received some funds back such was the efficiency of the SS default procedure, which lasted approx 3 months. I would be interested to know which platform you refer to where receivers were called in on pbl loan that defaulted, maybe it was not a pbl loan, it which case it is irrelevant, as we are dealing with PBL loans with a first charge in place. This is a FS thread referring to FS loans which may be 1st, 2nd or even 3rd charge loans, so hardly irrelevant. I think Mikes point is that it might not be dealt with as efficiently as SS.
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Post by earthbound on May 2, 2016 21:49:31 GMT
Hi @mike1531 if a borrower fails to repay, no receivers are involved, FS take possession of the asset , being the lender with a first charge, as happened previously on the SS site where the nursing home defaulted, SS dealt with that scenario in a very efficient way and no losses were incurred, indeed the defaulter even received some funds back such was the efficiency of the SS default procedure, which lasted approx 3 months. I would be interested to know which platform you refer to where receivers were called in on pbl loan that defaulted, maybe it was not a pbl loan, it which case it is irrelevant, as we are dealing with PBL loans with a first charge in place. This is a FS thread referring to FS loans which may be 1st, 2nd or even 3rd charge loans, so hardly irrelevant. I think Mikes point is that it might not be dealt with as efficiently as SS. please point me in the direction to back up mike1531 claims.
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SteveT
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Post by SteveT on May 2, 2016 21:49:36 GMT
Can anyone here point me in the right direction to substantiate mike1531's claim " ISTM that getting out in less than two years is likely to be difficult" anywhere on any platform that deal with first charge PBL'S ? AC had a handful of property bridging loans written in mid to late 2014 that went off the rails. I believe that some of these are still being worked through.
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Post by earthbound on May 2, 2016 21:50:56 GMT
Can anyone here point me in the right direction to substantiate mike1531's claim " ISTM that getting out in less than two years is likely to be difficult" anywhere on any platform that deal with first charge PBL'S ? AC had a handful of property bridging loans written in mid to late 2014 that went off the rails. I believe that some of these are still being worked through. thanks link please.
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SteveT
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Post by SteveT on May 2, 2016 21:55:07 GMT
AC had a handful of property bridging loans written in mid to late 2014 that went off the rails. I believe that some of these are still being worked through. thanks link please. If you're a member of AC you'll be able to see them for yourself on the platform. The recent discussion threads relating to those loans are on the AC private board, which AC members are free to join. A search of the public board threw up this one: p2pindependentforum.com/post/71087/thread
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Post by earthbound on May 2, 2016 22:00:54 GMT
If you're a member of AC you'll be able to see them for yourself on the platform. The recent discussion threads relating to those loans are on the AC private board, which AC members are free to join.
sorry steve, im not a member of AC, ... FS. SS AND MT only, that's why a link or previous post with regards to defaults taking 2 years+ would be helpful.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 2, 2016 22:02:41 GMT
Can anyone here point me in the right direction to substantiate mike1531's claim " ISTM that getting out in less than two years is likely to be difficult" anywhere on any platform that deal with first charge PBL'S ? Assetz Capital Loan 132 BL 1st charge, defaulted 18months ago, LPA appointed Mar a year ago, property sale will recover 75% capital by June at earliest, Loan 137 BL, 1st charge, defaulted 18 months ago, LPA appointed Mar a year ago, no recovery as yet due to legal action Loan 129 BL, as above, no recovery yet The discrepancies between default date & LPA appointment is because AC try and give the borrower the chance to refinance but charge default interest in the meantime
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SteveT
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Post by SteveT on May 2, 2016 22:02:51 GMT
sorry steve, im not a member of AC, ... FS. SS AND MT only, that's why a link or previous post with regards to defaults taking 2 years+ would be helpful. See my edit just above for a public board discussion link.
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Post by earthbound on May 2, 2016 22:11:17 GMT
Question please, as i am not involved with assetz capital and never have been.
Are the PBL loans issued on AC funded and secured as per Funding Secure. ?
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SteveT
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Post by SteveT on May 2, 2016 22:14:26 GMT
Question please, as i am not involved with assetz capital and never have been. Are the PBL loans issued on AC funded and secured as per Funding Secure. ? Yes. Be assured that mikes1531 knows what he's talking about, as do ilmoro , samford71 and anyone else who's been investing in bridging loans for some time. Incidentally, it won't be too long before I'll have been in FS's boatyard loan for a full year, and we haven't even got to the stage of an LPA Receiver being discussed!
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Post by earthbound on May 2, 2016 22:18:05 GMT
AC had a handful of property bridging loans written in mid to late 2014 that went off the rails. I believe that some of these are still being worked through. Losses are hardly uncommon, even on first charge sub 70% LTV security. Thanks samford71 can you point me in right direction to read the details of what went wrong, it will help with future DD.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 2, 2016 22:40:13 GMT
Question please, as i am not involved with assetz capital and never have been. Are the PBL loans issued on AC funded and secured as per Funding Secure. ? Not entirely sure what you mean. They are secured using a first charge over the property, in Ipswich/Epping cases an additional 2nd cross charge on the other property (same borrower), & a PG. LTV 70% Funded exactly the same as FS, manual bidding first come, first in, and underwriters with UW subsequently selling down holdings on SM, lenders could also sell on an SM. What went wrong, borrowers couldnt secure a refinance to pay back loans and couldnt cover interest after loans reached term (interest retained initially) (monthly) In case of both Anglesey & Ipswich value of property deteriorated over course of loan and subsequently (loss of tenants) so valuations have proved difficult to realise. Unfortunately unless you sign up to AC the specifics are not in the public domain.
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Post by earthbound on May 2, 2016 22:44:08 GMT
Question please, as i am not involved with assetz capital and never have been. Are the PBL loans issued on AC funded and secured as per Funding Secure. ? Yes. Be assured that mikes1531 knows what he's talking about, as do ilmoro , samford71 and anyone else who's been investing in bridging loans for some time. Incidentally, it won't be too long before I'll have been in FS's boatyard loan for a full year, and we haven't even got to the stage of an LPA Receiver being discussed! Thanks steve, me too to the tune of +5k, but its not a default, so not relevant (tho it should be by now) I am fully assured of the experiences of the above named, personally i have recently retired from 35yrs of property development, with many years experience of bridging loans, and not once come across the what seems now to be regularly quoted AC scenario, some of the negative rhetoric on this forum is nigh on laughable, (sorry to be so blunt) I have been investing with SS, FS and MT for some years now, and not once come across the AC scenario shovelled at me in the last 30 mins, why is the rhetoric so negative, please see ratesetter thread at the moment, its barmy, i am some times puzzled as to what the regular posters are trying to achieve, are we trying to encourage or discourage?
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Post by earthbound on May 2, 2016 22:53:14 GMT
What i am happy to do, is concede that the receiver/default scenario is possible  however as per the details posted, highly unlikely and indeed not yet seen on any platform i deal in. |
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however as per the details posted, highly unlikely and indeed not yet seen on any platform i deal in.