averageguy
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Post by averageguy on Apr 16, 2018 23:20:56 GMT
Dear all, Prior to the due date the borrower, and its broker, provided strong assurances that the refinance formalities were progressing well and they remained confident of repayment on the due date. However, after demanding a final face to face meeting with the borrower last week, it failed to provide documentation and/or correspondence to substantiate the intended refinance, and formal demands have now been issued. This was of course very disappointing to us and also to our investors. Whilst our recovery team is continuing to work on a refinance offer with the borrower, if significant progress is not obtained shortly then formal steps will need to be taken to enforce the loan. We'll provide an update by the end of the week. Lendy Support Thank you for this clarification. You have explained what Li** the borrower failed to provide at this most recent meeting. Can you please give us some details on what he did provide? One wonders whether this borrower has provided any recent paperwork to back up claims refinancing was to take place....it almost seems Lendy just took their word for it.
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Jeepers
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Post by Jeepers on Apr 16, 2018 23:35:38 GMT
Dear all, Prior to the due date the borrower, and its broker, provided strong assurances that the refinance formalities were progressing well and they remained confident of repayment on the due date. However, after demanding a final face to face meeting with the borrower last week, it failed to provide documentation and/or correspondence to substantiate the intended refinance, and formal demands have now been issued. This was of course very disappointing to us and also to our investors. Whilst our recovery team is continuing to work on a refinance offer with the borrower, if significant progress is not obtained shortly then formal steps will need to be taken to enforce the loan. We'll provide an update by the end of the week. Lendy Support So you knew a week before us? Come on, this is £14m, 10% of the loan book we're talking about and you withheld this information and led us on for a full week ?
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Post by p2plender on Apr 17, 2018 5:59:16 GMT
This is not good. On 16 March, LY's update said they were "sending the borrower a redemption statement in order to progress with the refinance of the loan facility. Once provided, we shall closely monitor the refinance where the loan is due to be repaid in full on 14 April 2018". On 29 March, LY's update said "The refinance formalities are progressing". (Note - not even that they had been told by the borrower that the refinance was progressing. It was a statement written as fact, not hearsay). But on 13 April LY said the repayment would not be happening and on 16 April, LY admit the borrower had "failed to provide documentation and/or correspondence to substantiate the intended refinance". Unfortunately, the update here on 16 April contradicts the 2 previous March updates and, on the face of it, it appears to me that the updates posted on 16 and 29 March were factually incorrect or, in modern parlance, 'fake updates'. In summary, 1. On 16 March LY said they would "closely monitor the refinance". Evidently they did not. 4 weeks later, in the 13 April update, they advised that the refinance had not progressed and on 16 April said no evidence of refinance had been produced. Contrary to the 16 March update, that does not suggest any monitoring of the situation in the previous 4 weeks - let alone "close monitoring". 2. The 29 March update informing lenders that the "refinance formalities are progressing" appears to have been untrue. A fake update. And if it was not a fake update - what evidence did LY have on 29 March that the refinance was progressing, when they advise on 16 April that the borrower had failed to provide any evidence of refinance. Now we have engaged you Paul, could you explain what actual level of correspondence you actually had in the 4 weeks prior to this sudden 'u turn'? I'm sure you're aware the level of anger and frustration Lendy have created with yet another sudden abrupt turn of events. I would go as far to say, the whole future of the platform and business probably depends on this loan given it's size and what many thought, quality. I welcome your comments.
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Post by d_saver on Apr 17, 2018 8:29:28 GMT
highly unusual but you can see on CH filings 'advance charges' registered against the security & borrower company by what I assume to be a proposed funder in late November ....Agreement to secure costs of considering loan terms in respect of a charge over....Must have failed underwriting/valuation? As I recall, this was to cover the cost of valuation and preparing a loan offer from a finance company. Pretty sure they stated that if an offer to finance was made but not accepted, all fees still applied, hence the charge.
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mary
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Post by mary on Apr 20, 2018 13:38:41 GMT
Dear all, Prior to the due date the borrower, and its broker, provided strong assurances that the refinance formalities were progressing well and they remained confident of repayment on the due date. However, after demanding a final face to face meeting with the borrower last week, it failed to provide documentation and/or correspondence to substantiate the intended refinance, and formal demands have now been issued. This was of course very disappointing to us and also to our investors. Whilst our recovery team is continuing to work on a refinance offer with the borrower, if significant progress is not obtained shortly then formal steps will need to be taken to enforce the loan. We'll provide an update by the end of the week. Lendy Support Looking forward to the end of the week update.
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invester
P2P Blogger
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Post by invester on Apr 20, 2018 14:11:11 GMT
Would enforcement be a bit of a toothless demand in this instance? What would happen to the contracts agreed with the SPV if the SPV then goes out of existence?
Repossession is fine, but there would still be a hell of a lot of work to do before all investors are made whole.
I am getting nervous that the GDV doesn't stack up for a firesale, although it does for build-to-rent type developer. But these may be so few and between that a huge discount needs to be offered.
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Post by Lendy Support on Apr 20, 2018 14:47:42 GMT
Dear all, Whilst we acknowledge that documentation in relation to the refinance was not received in the run up to the repayment date, we were in constant contact with the borrower, and its broker, on an almost daily basis in the run up to the repayment date. The broker is well known to Lendy and we have done a number of successful deals with it previously. We therefore had no reason to believe that the refinance was not progressing as planned as we were advised. We do however take on board comments on the forum in this regard and will strive to ensure the issues raised do not happen in the future. The latest update as of today is that formal demands have been issued to the borrower and personal guarantor and we remain in daily communication with them in relation to the proposed refinance. Notwithstanding this, we are making further enquiries in relation to the property and a Chartered Surveyor has been instructed to attend the site on Thursday 26 April 2018 and thereafter prepare an up to date valuation report. We'll update here and on the platform when we have any and all material updates. Regards Lendy Support
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Post by skint4achange on Apr 20, 2018 15:06:53 GMT
Lendy Support , firstly, that must be the first like you have had in a while, welcome back from the cold!
Secondly, well done. A little interaction with your investors without being condescending or aloof goes a long way........ at least it does in my book.
I would hope that you will continue to engage with the forum on a more personal level and not just cut and paste FAQ replies.
I look forward to seeing more of your posts.
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Monetus
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Post by Monetus on Apr 20, 2018 15:16:32 GMT
Secondly, well done. A little interaction with your investors without being condescending or aloof goes a long way........ at least it does in my book.
I would hope that you will continue to engage with the forum on a more personal level and not just cut and paste FAQ replies.
I look forward to seeing more of your posts. Seconded. I'm hoping that this response and today's email regarding the loan withdrawal is the start of a more personal and engaged tone for Lendy's communications. This would be much preferred to the corporate waffle and stock responses we've been subjected to until now. Good work Lendy Support
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Jeepers
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Post by Jeepers on Apr 20, 2018 15:27:13 GMT
Why are surveyors been sent in to do reports and formal demands being sent etc ?
Are they enforcing the loan or still expecting refinance ?
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tx
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Post by tx on Apr 20, 2018 16:38:14 GMT
Secondly, well done. A little interaction with your investors without being condescending or aloof goes a long way........ at least it does in my book.
I would hope that you will continue to engage with the forum on a more personal level and not just cut and paste FAQ replies.
I look forward to seeing more of your posts. Seconded. I'm hoping that this response and today's email regarding the loan withdrawal is the start of a more personal and engaged tone for Lendy's communications. This would be much preferred to the corporate waffle and stock responses we've been subjected to until now. Good work Lendy Support Same thought here. Please Lendy keep up your communication. Best way to keep confidence and flow of funds.
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mary
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Post by mary on Apr 20, 2018 16:39:13 GMT
Why are surveyors been sent in to do reports and formal demands being sent etc ? Are they enforcing the loan or still expecting refinance ? As the loan is now overdue, it seems sensible to be prepared. Not sure why other loans have allowed to exceed -90, -150 and even -200 days without any actions being taken. Lendy needs to be as pro-active with all loans as they seem to be with this one.
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Jeepers
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Post by Jeepers on Apr 20, 2018 16:46:31 GMT
Seems strange how one minute, refinance is a certain. Then they tell us theyve had nothing but success with this broker, then recovery steps are being taken after just 7 days.
Meanwhile, other loans are being allowed to go 500+ days overdue with less action.
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Post by spareapennyor2 on Apr 20, 2018 17:41:50 GMT
i wish Lendy done the same on DFL005 looks like they`re being bent over an having to take it like or not
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Post by brightspark on Apr 20, 2018 19:06:57 GMT
A leopard does not change its spots so ignore the new touchy-feely Lendy. i sense bad news just over the horizon. Investors are not going to see the bulk of their money any time soon. The borrower parties were economical with the truth which does not bode well. I smell a hair-cut. If only all the p to p platforms had shown back-bone from the start!
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