phil
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Post by phil on Sept 4, 2017 9:33:42 GMT
@hor1997 I think the problem is that the Housing Association are still busy developing other projects. Our loans are for projects in their pipeline, and the BOI aren't going to finance these until they are shovel ready. Our Borrower is an intermediary waiting for the Housing Association to start developing his/our sites. The good news is that the Housing Association has now added one/two of our loans (1205065729 & 2437319925) to their "future development" page, although the number of apartments is somewhat different, 19 not 24. Honestly I cannot care less about the Housing Association plans. I lent to a specific borrower and not to the association. Works will be delayed? Good. No problem. The borrower gives back 100% of the capital+ interest and applies back in 6 months/1 year time. Why is this not happening?  ? We were informed that repayment of the loan depended on HA therefore our decision to lend was based on the HA honouring their side of the deal. So not exactly correct to say you lent to a specific borrower and not the HA, you in fact lent to a specific borrower with the knowledge that the HA would repay our loan when they commenced works. At present time the HA are still indicating they will honour their agreement to develop the site. I'm happy to leave it to FS to decide the best course on the grounds the vast majority of investments I've made with them have repaid quite satisfactorily and I'm currently quids in.
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phil
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Post by phil on Sept 4, 2017 13:16:28 GMT
We were informed that repayment of the loan depended on HA therefore our decision to lend was based on the HA honouring their side of the deal. So not exactly correct to say you lent to a specific borrower and not the HA, you in fact lent to a specific borrower with the knowledge that the HA would repay our loan when they commenced works. At present time the HA are still indicating they will honour their agreement to develop the site. I'm happy to leave it to FS to decide the best course on the grounds the vast majority of investments I've made with them have repaid quite satisfactorily and I'm currently quids in. To me you can even open directly a line of credit to this borrower and let him have all your money. But this is NOT what I signed up. The loan I agreed to is a FIXED term loan of 6 months. I do understand that a degree of flexibility is necessary, but this has been exeeded LONG time ago. Most of all I see no answers to very legitimate questions, such as: where is the money? If ZERO work has been done on the site, why has this not been returned? Why is the interest not paid up? Why are we NOT taking at very least the rent of the ground floor to keep the LTV under some degree of control??? I do understand that FS 'thinks' that 'at some point in the future' this loan might repay in full, but what about managing it NOW to contain the damage in case this is not happening? I cannot accept that pure luck is the driver of any loan.... The loan you agreed and signed up to was contingent on the HA, you took the risk that HA would honour their agreement in the six month term. That's why you get 13%, for taking that risk. To me you can open a BSoc account and get your FIXED term with around 1% interest Whether degree of flexibility has been exceeded depends of point of view, the HA are still in the picture, I'm happy to wait until they either withdraw or honour their agreement, I took that risk when I signed to the loan and I'll honour it.
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phil
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Post by phil on Sept 4, 2017 13:40:14 GMT
We were informed that repayment of the loan depended on HA therefore our decision to lend was based on the HA honouring their side of the deal. So not exactly correct to say you lent to a specific borrower and not the HA, you in fact lent to a specific borrower with the knowledge that the HA would repay our loan when they commenced works. At present time the HA are still indicating they will honour their agreement to develop the site. I'm happy to leave it to FS to decide the best course on the grounds the vast majority of investments I've made with them have repaid quite satisfactorily and I'm currently quids in. Most of all I see no answers to very legitimate questions, such as: where is the money? If ZERO work has been done on the site, why has this not been returned? Why is the interest not paid up? Why are we NOT taking at very least the rent of the ground floor to keep the LTV under some degree of control??? I do understand that FS 'thinks' that 'at some point in the future' this loan might repay in full, but what about managing it NOW to contain the damage in case this is not happening? I cannot accept that pure luck is the driver of any loan.... I'm in two of these loans, the loans I invested in were to purchase the land/property or for planning costs, not for building work. Which loan is it that was supposed to be used for building work?
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SteveT
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Post by SteveT on Sept 4, 2017 14:13:05 GMT
I'm in two of these loans, the loans I invested in were to purchase the land/property or for planning costs, not for building work. Which loan is it that was supposed to be used for building work? It is clear that you have no idea of things. Why do you continue commenting on things you simply don't know? " Borrower already owns three floors of the property which are being converted into flats." The idea of this development was to convert the commercial units into flats. Of course I would expect some renovation work and transformations in such a scheme, which has not happened at all. Clearly the borrower is using our money for other aims... Actually, the purpose of FS loan "Ground Floor Retail, Londonderry (1205065729)" is stated as " This loan is to part fund purchase of the retail unit on the ground floor". It does also state that the borrower " already owns three floors of the property which are being converted into flats" but that's independent of the FS loan. Either way, it is clear from the updates across this and all the borrower's other Londonderry loans that repayment hinges on the same refinancing as the others. ps. I think you'll find your contractual loan agreement is with the borrower, not with FS (who act only as "agent and security trustee for each and every investor"). Section 1.2 of the T&Cs states: " FundingSecure is not a party to any Loan Agreements between Investors and Borrowers. FundingSecure's principal role is to act as agent to facilitate the entering into of Loan Agreements between prospective Investors and Borrowers. FundingSecure Limited signs the Loan Agreements with the Borrowers electronically acting as agent and security trustee for the Investors. FundingSecure provides valuation and logistics services and holds Borrowers' pledged Assets as security for Loans entered into. FundingSecure provides the form of Loan Agreement which each Investor and Borrower agrees to be bound by when investing or borrowing via our platform. FundingSecure also provides, via our platform, the payment mechanisms for Investors to invest and Borrowers to make repayments required under Loan Agreements; and facilitates the disposal of Assets in the event of Default."
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phil
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Post by phil on Sept 4, 2017 22:01:26 GMT
I'm in two of these loans, the loans I invested in were to purchase the land/property or for planning costs, not for building work. Which loan is it that was supposed to be used for building work? It is clear that you have no idea of things. Why do you continue commenting on things you simply don't know? " Borrower already owns three floors of the property which are being converted into flats." The idea of this development was to convert the commercial units into flats. Of course I would expect some renovation work and transformations in such a scheme, which has not happened at all. Clearly the borrower is using our money for other aims... If you have any idea of these things then please tell us which loan the borrower took out to pay for building work? It seems you are misleading us unless you can inform us as to which loans were specifically for building work.
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phil
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Post by phil on Sept 4, 2017 22:15:39 GMT
The loan you agreed and signed up to was contingent on the HA, you took the risk that HA would honour their agreement in the six month term. That's why you get 13%, for taking that risk. To me you can open a BSoc account and get your FIXED term with around 1% interest Whether degree of flexibility has been exceeded depends of point of view, the HA are still in the picture, I'm happy to wait until they either withdraw or honour their agreement, I took that risk when I signed to the loan and I'll honour it. But if a person does not even know the interest offered by a loan (which is certainly not the 13% you mention...), how can he argue on the repayment schedule? You have no idea of what a contract is and how FS would go down in court in such a case.... If a person cannot even tell us which loan the borrower took out to perform building works then how can he argue that the borrower has not performed the building works? I may have written 13% instead of 12% but I understood precisely what I was lending on, the acquisition of property and the resultant planning application with a HA pledging to provide finance to repay the loan when planning was in place.
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phil
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Post by phil on Sept 5, 2017 0:11:54 GMT
The loan you agreed and signed up to was contingent on the HA, you took the risk that HA would honour their agreement in the six month term. That's why you get 13%, for taking that risk. To me you can open a BSoc account and get your FIXED term with around 1% interest Whether degree of flexibility has been exceeded depends of point of view, the HA are still in the picture, I'm happy to wait until they either withdraw or honour their agreement, I took that risk when I signed to the loan and I'll honour it. Not sure where you read such information, but I can ensure you that your understanding of facts is simply wrong. But if a person does not even know the interest offered by a loan (which is certainly not the 13% you mention...) Actually, you can't ensure me but you could assure me. Normally I wouldn't be so pedantic but simply following your example of tossing over the difference of 12/13% interest return
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ilmoro
Member of DD Central
'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 Sept 5, 2017 0:44:36 GMT
Even if you both takes steps to ensure that you are assured of the facts, it still does nothing to insure lenders against loss sufficiently to reassure.  |
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macro
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Post by macro on Sept 5, 2017 2:57:09 GMT
Even if you both takes steps to ensure that you are assured of the facts, it still does nothing to insure lenders against loss sufficiently to reassure. To resume, I'd presume to assume nothing with FS and a borrower who has insumed and absumed your money.
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SteveT
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Post by SteveT on Sept 5, 2017 9:09:04 GMT
The point is am making is that FS has a legal duty to minimise risks and to keep the loans under strict control at all time. Interesting. Can you please clarify what law you are referring to? I'd certainly agree that there's a commercial incentive for FS to do so, since lenders otherwise may choose to invest elsewhere, but how do you foresee taking action under law? Incidentally, under the T&Cs, by lending money through FS you have agreed that: 6.4 FundingSecure does not guarantee the period of time taken to dispose of an Asset and realise proceeds for reimbursing the Investors.
6.5 FundingSecure may, at its discretion, elect to delay enforcement of the default procedures if it believes the debt will be repaid by the borrower and that, by not enforcing the default procedures, a better outcome will be achieved for investors.
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oldgrumpy
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Post by oldgrumpy on Sept 5, 2017 10:52:17 GMT
Nonsense. If FS did nothing for lenders and everything for borrowers, that would be 100%, not 200%. It reminds me of those "candidates" in the boardroom who give their assurance  so enthusiastically. "I'm passionate I will give you 101% effort Lord Sugar please don't fire me.*" * or "S'rAlan" depending on how long ago I watched that Trumpish claptrap. |
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Steerpike
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Post by Steerpike on Sept 5, 2017 14:21:14 GMT
Monkey???
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oldgrumpy
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Post by oldgrumpy on Sept 5, 2017 14:35:47 GMT
What humiliation.  Gutted. I need counselling. I know. I'll have another banana; increase my consumption by 100% for the day. (I see horror1997 has revised his text as well as giving clarification.  )
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jimbob
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Post by jimbob on Sept 5, 2017 14:49:02 GMT
THis is the residual loan I'm happiest with in Funding Secure at the moment, would gladly trade my powerboat or K********** property parts for more of this one ! (I'd think about it with the maritime memorabilia...)
With a bit of luck and a following wind it might even complete before christmas..
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phil
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Post by phil on Sept 5, 2017 16:52:22 GMT
Actually, you can't ensure me but you could assure me. Normally I wouldn't be so pedantic but simply following your example of tossing over the difference of 12/13% interest return If you knew any of the 4 languages I speak fluently at the level I know them (and English is not my mothertongue), you would certainly not worry about the difference between ensure and assure. We are at an unofficial extension of almost 200% here without FS taking any single step to ensure the lenders' money would be safe.... Incredible and unaccetable to me. I only speak one language, plain English, so here it is in plain English: The borrower took the loans to purchase property and apply for planning permission. He has done precisely what he said he'd do, he purchased property and obtained planning permission. The HA are now dragging their feet but are still indicating their intention to honour their pledge. It would not be fair to either the borrower or us lenders (who could end up worse off) to start legal action against a seemingly blameless borrower until we see if the HA will honour the deal. sqh, in this thread on Aug 9, 2017 at 5:01pm, told you in plain English: "I think the problem is that the Housing Association are still busy developing other projects. Our loans are for projects in their pipeline, and the BOI aren't going to finance these until they are shovel ready. Our Borrower is an intermediary waiting for the Housing Association to start developing his/our sites." "The good news is that the Housing Association has now added one/two of our loans (1205065729 & 2437319925) to their "future development" page, although the number of apartments is somewhat different, 19 not 24." I think sqh was correct, HA are waiting till they're shovel ready before committing funds. Let's be patient and see.
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so enthusiastically. "I'm passionate I will give you 101% effort Lord Sugar please don't fire me.*"
Gutted. 
) 