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Post by Lendy Support on May 4, 2018 13:17:00 GMT
Dear all, We have a further update on this loan. Following the intended appointment of the LPA Receiver to recover all outstanding sums due from the borrower, the borrower has contacted Lendy stating they intend to dispute the enforcement of the security. Whilst we are of the view that there is no merit in their assertions, as a potential consequence of this change to the risk profile of the loan, and in line with our regulatory requirements, Lendy has taken the decision to suspend trading of the loan on the secondary market. In the meantime, we will be referring this matter to our legal team to advise as to our best next steps and will provide an update w/c June 4th latest. Kind regards Lendy Support
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blata
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Post by blata on May 4, 2018 13:18:14 GMT
So where does that leave us?
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adrianc
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Post by adrianc on May 4, 2018 13:24:34 GMT
So where does that leave us? Hanging temporarily, until the legals get sorted out. If the security is enforceable, then it's just a bit of a delay. If the security is not enforceable, then there's some fairly major questions for Lendy to be answering.
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hazellend
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Post by hazellend on May 4, 2018 13:30:58 GMT
why is it that borrowers as a group are devoid of interpersonal skills like communicating until forced then try stupid stuff like this.
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invester
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Post by invester on May 4, 2018 13:31:03 GMT
On what grounds could the security not be enforced?
Amazing how this loan has gone sour in the space of a few weeks. It was almost like the scheduled refinance never existed at all.
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sl75
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Post by sl75 on May 4, 2018 13:33:12 GMT
Wouldn't the borrower do better to complete the refinance that they'd repeatedly assured us was progressing well, rather than quibbling over enforcement of the security?
Repay the loan => no need to enforce security, and you get to keep the profit rather than using it all up in various legal fees!
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mary
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Post by mary on May 4, 2018 13:33:19 GMT
So where does that leave us? It means that all refinancing attempts have failed, and the borrower has no other option but to use any possible delaying tactic to stave off the inevitable (assuming Lendy's paperwork is in order, which I assume it is). I don't expect an early resolution to this given the size and uniqueness of the building and (I think it's still only part finished).
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Post by ladywhitenap on May 4, 2018 13:35:59 GMT
Dear all, We have a further update on this loan. Following the intended appointment of the LPA Receiver to recover all outstanding sums due from the borrower, the borrower has contacted Lendy stating they intend to dispute the enforcement of the security. Whilst we are of the view that there is no merit in their assertions, as a potential consequence of this change to the risk profile of the loan, and in line with our regulatory requirements, Lendy has taken the decision to suspend trading of the loan on the secondary market. In the meantime, we will be referring this matter to our legal team to advise as to our best next steps and will provide an update w/c June 4th latest. Kind regards Lendy Support Lendy SupportIt would be helpful if on the website you identified which loan this update applies to?
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invester
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Post by invester on May 4, 2018 13:44:51 GMT
Wouldn't the borrower do better to complete the refinance that they'd repeatedly assured us was progressing well, rather than quibbling over enforcement of the security? Repay the loan => no need to enforce security, and you get to keep the profit rather than using it all up in various legal fees! Looking at the building it seems obvious that the market for this would be highly illiquid. Given the amount spent so far it the costs of dragging this out are immaterial to the borrower. Genuinely wonder if this is going to end up like E*eter where the original borrower ends up getting the thing for a discount.
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Post by rb5286 on May 4, 2018 13:48:29 GMT
I'm guessing we still don't care about the morals (or lack thereof) of the borrower?
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sl75
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Post by sl75 on May 4, 2018 13:57:00 GMT
Looking at the building it seems obvious that the market for this would be highly illiquid. Given the amount spent so far it the costs of dragging this out are immaterial to the borrower. Genuinely wonder if this is going to end up like E*eter where the original borrower ends up getting the thing for a discount. As I understand it there are a considerable number of completed units on the development (and perhaps some others that need only a small investment to complete?) The market for those individual units seems likely to much more liquid than the market for the residual uncompleted development, or for the entire site (including the completed and uncompleted parts).
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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 May 4, 2018 14:07:03 GMT
So rather than a severe weather warning we get severe loan warnings.
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Jeepers
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Post by Jeepers on May 4, 2018 14:12:46 GMT
Why do I have to click to say 'I have read and understood' ? Am I showing legal acceptance of something ?
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Monetus
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Post by Monetus on May 4, 2018 14:27:37 GMT
Well this escalated quickly.
From an almost dead cert refinance to receivership and court battles in just a few weeks!
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hazellend
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Post by hazellend on May 4, 2018 14:53:02 GMT
It is a sign that Lendy are maturing. I don’t think they would have acted so promptly previously and are learning how to play the game better
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