ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 15, 2017 18:12:23 GMT
After conversing with FS they (FS that is) are not unduly worried about these Loans. There is as always a need to be very circumspect and Defaulting would open a huge can of worms (problems). Personally, I'm now OK with it, for a while, we'll see.
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micky
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Post by micky on Mar 16, 2017 15:32:36 GMT
Good news about one of these loans-Re W******* R*.
'From Daisy-16/3/17
We have had an email this morning from BOI stating that they are still going ahead with additional funding which should be complete soon. A further update will be posted on the loan over the weekend.'
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Post by savgeax on Mar 19, 2017 11:35:50 GMT
So further updates on the Ground Floor and the Bar, why do I get a feeling both are going to default  |
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phil
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Post by phil on Mar 26, 2017 9:57:20 GMT
The Londonderry saga is continuing with FS incredibly uncaring about the consequences of their total inaction. The loan 2437319925 is over 4 months late (out of 6 of it original loan term) and the current LTV is rapidly approaching 80%.... Not a single word has been given to the reasons of the delay and inaction. Not a ingle word has been spent in explaining where out money has gone (given no work has been commenced at all). Every single day the chances of a full recovery diminuish. FS should act NOW with receivers IMMEDIATELY IN to sell the security!!!!! Would probably be a bit rash to start spending on receivers before the results of the planning application is known. If the planning is succesful perhaps it will add value to the asset and therefore enhance our chances of full recovery should it come to repossession.
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phil
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Post by phil on Mar 26, 2017 21:07:46 GMT
Would probably be a bit rash to start spending on receivers before the results of the planning application is known. If the planning is succesful perhaps it will add value to the asset and therefore enhance our chances of full recovery should it come to repossession. It is UNACCEPTABLE to let things run for so long without control. A delay of 130+ days (after the 180 days of regular loan) without any action is untolerable. FS not only has no idea of what to do, but does not even have a clue of the whereabouts of our money. If the borrower does not have money even to pay for the renewal (i.e. just the interest) how on earth could hope to even start making any enhancement on the property now?? Also the communications have been poor. FS continued to talk about "funds awaited" since November 2016 and has not been capable even to simply take control of the rent of the ground floor which is continuing to flow to the borrower... Not a single word was ever posted on planning permission or related activities. The loan was posted on the FS network with a certain associated risk, which is connected to the value of the security. The LTV was below 70% (just tolerable) back then. But is now almost 80% and has exceeded any reasonable threshold that a lending company MUST have for inaction. Any single extra day given to this borrower is now causing a diminuished chance to recover the money in full. There is no logic behind what FS is doing, except their clear lack of resouces to follow properly this case so far from their normal operations. This is becoming a disaster case and should be stopped now. 2437319925 is the loan into which I invested at a stated LTV of 53.5%, which makes it circa 59% LTV now. Points taken and I understand your frustation but to act now seems to me to be a little premature, for three reasons: 1) BOI has approved funding subject to final confirmation of planning details. 2) FS have received documents from the planning committee pointing to a completion of planning approval. 3) The Housing Association have stated they will start to release funds upon planning approval. The logic of delay to start repossession is that the quickest way for us to have our investments returned is that the project receives planning approval and then BOI and the HA honour their pledges.
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SteveT
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Post by SteveT on Apr 7, 2017 7:18:30 GMT
Some tangible sign of progress?
"We have confirmation that planning approval has now, finally, been given. This will allow the borrower to draw down funds"
(update posted on all of the connected Londonderry loans, including the Ground Floor Retail and M***** Bar)
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 7, 2017 9:49:27 GMT
Hope springs eternal ..........................
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09dolphin
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Post by 09dolphin on Apr 7, 2017 12:40:39 GMT
This could be the second bit of good news in just one day on this site. Sounds as if funds will be made available to the borrower before the end of the month. Just hope they use the funds to repay lenders.
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phil
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Post by phil on Apr 7, 2017 13:05:19 GMT
We talk about two different loans. My complain is about Ground Floor Retail, Londonderry (1205065729), which started at 69.44% LTV, and after 130 days of delay is not rapidly running towards 80% LTV. The risk FundingSecure is allowing is far too high with respect to the property stated value now. And even after 4+ months there is NO MENTION of the reasons of this delay, nor a single word on planning applications for the specific ground floor loan.... I understand allowing a borrower a flexibility of around 1 month bt when you talk of 4-5 months of inaction on a 70% LTV loan, this is CLEARLY AN ABUSE by FS. We talk about about the same borrower. To launch action on the Ground Floor Retail loan may cause a domino effect detrimental to both loans just at a point when the borrower has obtained planning approval. Much better now to see if BOI and the HA honour their pledges as a route to the speediest recovery of our investments.
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mikes1531
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Post by mikes1531 on Apr 7, 2017 18:45:33 GMT
Sounds as if funds will be made available to the borrower before the end of the month. Just hope they use the funds to repay lenders. ISTM that they have to. The new lender wouldn't advance the money without having the security, and FS won't -- or at least shouldn't -- release the security without their debt being paid. So the money to repay the FS loans should go straight from the new lenders' solicitors' account into FS's solicitors' account as part of the refinance process completion. He says hopefully! 
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SteveT
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Post by SteveT on Apr 7, 2017 20:09:10 GMT
Are BoI not said to be providing "additional funding"? I read that to mean a second charge loan that will hopefully fund the interest to permit renewal. Ultimately the funds to repay are most likely to come from the Housing Association.
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Post by beepbeepimajeep on Apr 13, 2017 16:38:07 GMT
In 3 of these loans, hoping for some progress finally.
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r00lish67
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Post by r00lish67 on Jun 4, 2017 15:49:45 GMT
Now otherwise known as the Hokey Cokey loans:  January 2nd: IN: "As previously advised we have sight of contracts with the housing association who will be providing funds. It is now expected that funds will be available in January" February 12th: OUT: "Further discussions with the borrower have confirmed that progress has been made but funds have still not yet been released by the housing association" April 7th: IN: "We have confirmation that planning approval has now, finally, been given. This will allow the borrower to draw down funds" April 17th: OUT: "We have had several discussions with the borrower. They are in the process of setting up the full credit line with BOI..." May 7th: IN: "Confirmation today (Sunday) that funds will be available shortly - more details next week" June 4th: OUT: Requests for information on title deeds and other legal docs have been made by client's solicitors, in preparation for refinancing and subsequant removal of charges" fundingsecure before you shake it all about with your updates, could you please do some more work to actually back up the claims made? I understand this isn't smooth sailing but please stop periodically indicating that all is sorted only to follow up next week with a "start of a long journey" type update. Especially when we've had several months of this, and it's so very clear that whoever is feeding you these lines is, at best, not to be fully trusted with their sense of timing. Also, on 13th May you indicated you'd be doing a site visit - did that happen and if so how did it go? Edit: Please note that the Hokey Cokey button is not currently operational, however I have confirmation that funding is in place to rectify this - more details next week. |
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ashtondav
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Post by ashtondav on Jun 4, 2017 17:20:04 GMT
I fully expect 3% or 4% of loans to default with no return. My policy is no more than 1% in each loan, so that would still deliver >8% pa.
For all its faults I don't think FS is anywhere near that level of default, but FS is very high risk, any financially secure developer would be able to borrow from a bank at half FS rates. Accept we are lending to the financially challenged, commercially stretched and speculative borrowers. Diversify accordingly.
BS are lending at under 3% on residential mortgages of 60% LTV. We are getting a substantial risk premium.
I do accept that FS is lamentable at communications and pursuing borrowers. 70% LTV is way too high, it should be no higher than 60% IMO.
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Post by beepbeepimajeep on Jun 6, 2017 8:57:25 GMT
fundingsecure before you shake it all about with your updates, could you please do some more work to actually back up the claims made? I understand this isn't smooth sailing but please stop periodically indicating that all is sorted only to follow up next week with a "start of a long journey" type update. Especially when we've had several months of this Haha amazing post. The quoted part is exactly what Funding Secure do on many late loans and it is highly annoying.
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