SteveT
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Post by SteveT on Mar 1, 2020 12:57:10 GMT
I've had an email from BridgeCrowd saying that, given the strength of feeling from multiple BC lenders about L*** W****** and his defaulted Lendy loan, the pipeline BC loan will not now be going ahead.
Incidentally, apparently it was to refinance a loan he has with another bridge lender.
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one21
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Post by one21 on Mar 1, 2020 13:21:21 GMT
I've had an email from BridgeCrowd saying that, given the strength of feeling from multiple BC lenders about L*** W****** and his defaulted Lendy loan, the pipeline BC loan will not now be going ahead. Incidentally, apparently it was to refinance a loan he has with another bridge lender. Outrageous you couldn't make it up!
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Mar 1, 2020 13:34:12 GMT
I've had an email from BridgeCrowd saying that, given the strength of feeling from multiple BC lenders about L*** W****** and his defaulted Lendy loan, the pipeline BC loan will not now be going ahead. Incidentally, apparently it was to refinance a loan he has with another bridge lender. Outrageous you couldn't make it up! Unfortunately lending on P2P is solely based on the security asset and does not take into account something that has no bearing. Because a previous lender accepted a higher risk investment and that failed should have no bearing on whither they choose to lend if the are satisfied the security is sufficient to meet their criteria in this instance. A large companies have failures it does not stop them trading. Also a default is not necessary a failure full repayment or recovery may happen.
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Godanubis
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Post by Godanubis on Mar 1, 2020 13:34:30 GMT
I've had an email from BridgeCrowd saying that, given the strength of feeling from multiple BC lenders about L*** W****** and his defaulted Lendy loan, the pipeline BC loan will not now be going ahead. Incidentally, apparently it was to refinance a loan he has with another bridge lender. Outrageous you couldn't make it up! Unfortunately lending on P2P is solely based on the security asset and does not take into account something that has no bearing. Because a previous lender accepted a higher risk investment and that failed should have no bearing on whither they choose to lend if the are satisfied the security is sufficient to meet their criteria in this instance. A large companies have failures it does not stop them trading. Also a default is not necessary a failure full repayment or recovery may happen. The borrower’s often refinance at lower rates and the other lenders get repaid in full and the new lenders are happy to do so. As far as I am aware there is only a legal issue for the delay in selling this property not a financial one.
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one21
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Post by one21 on Mar 1, 2020 14:19:09 GMT
Outrageous you couldn't make it up! Unfortunately lending on P2P is solely based on the security asset and does not take into account something that has no bearing. Because a previous lender accepted a higher risk investment and that failed should have no bearing on whither they choose to lend if the are satisfied the security is sufficient to meet their criteria in this instance. A large companies have failures it does not stop them trading. Also a default is not necessary a failure full repayment or recovery may happen. The borrower’s often refinance at lower rates and the other lenders get repaid in full and the new lenders are happy to do so. As far as I am aware there is only a legal issue for the delay in selling this property not a financial one. Hmm thats if the security asset was valued correctly in the first place! Accurate estimation of construction costs, efficient working practices, comparable local property values etc etc
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Balder
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Post by Balder on Mar 1, 2020 14:42:55 GMT
I think the Somerset shed is also a prime example where the history of the borrower is just as important.
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Post by brightspark on Mar 1, 2020 15:31:51 GMT
One of the considerations in any due diligence is the previous credit history of the borrower. By any measure this borrower has hardly a leg to stand on and has only themselves to blame that credit is hard to come by. I find it impossible to empathise.
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micky
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Post by micky on Mar 2, 2020 10:55:13 GMT
So this guy probably doesn't complete the Lendy loan project because he buys another property, that he is now trying to refinance with other P2P lenders. Whilst 1000's of investors in his original loan are losing out. Oh and buys a brand new swanky kitchen. The man has no morals Karma.
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Godanubis
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Post by Godanubis on Mar 2, 2020 20:45:30 GMT
So this guy probably doesn't complete the Lendy loan project because he buys another property, that he is now trying to refinance with other P2P lenders. Whilst 1000's of investors in his original loan are losing out. Oh and buys a brand new swanky kitchen. The man has no morals Karma. Nobody is losing out till "The Fat Lady Sings" and the figues are out
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averageguy
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Post by averageguy on Mar 2, 2020 21:24:26 GMT
So this guy probably doesn't complete the Lendy loan project because he buys another property, that he is now trying to refinance with other P2P lenders. Whilst 1000's of investors in his original loan are losing out. Oh and buys a brand new swanky kitchen. The man has no morals Karma. Nobody is losing out till "The Fat Lady Sings" and the figues are out Well we are losing out now...no interest being paid (and we all know it will be a capital loss)
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Post by rooster on Mar 2, 2020 21:50:36 GMT
Just wanted to check it out with the mods- From the other forum 'Apparently Bridgecrowd are offering another multimillion pound loan on a property in Stafford Street, Wolverhampton, to the same borrower who has defaulted on the S****** Development loan on Lendy to the extent of £14M + a lot of interest. Does anyone know the criteria Bridgecrowd (in their wisdom) use for assessing the appropriateness of prospective borrowers to receive credit? The loan is actually to be 678£K+ 2nd charge on a £3.5M property with an outstanding £1.4M first charge mortgage on it Maybe someone on Bridgecrowd can reply on this forum to assure me that my money will be safe if I invest with them on this particular loan. Maybe Mr W has repaid his Lendy loan to the administrators, and we haven't been informed yet. Yes, that must be it.' I'm happy to agree with- 'It appears in the world of P2P we are quite often at a loss (literally) to do anything when these scoundrels walk away from our loans on the cheap. As a community the least we can probably manage is to scupper all future plans by those who owe us money and regret the day they messed with us. Where do we start in stopping this obtaining funding!' As Bridgecrowd infom us- 'The borrower is also providing a PG in addition to the legal charge over the security. The borrower also owns an unencumbered property valued at £750k and jointly owns a further property with a self-asserted EMV of £2.5m with a £1m 1st charge mortgage.' I have also been informed that for those with access to BC site that the valuation report for the new Wolverhampton BC loan contains contact details for the borrower. Wait, doesn't that assume that BC want repaying? I mean, surely they'll make more money if the borrower defaults. Perhaps they're copying Lendy's model (why wouldn't they, it was fully FCA approved). Get 1st charge on the property, stretch the sale out over years and rack up waterfall-fees in the meantime. Its a goldmine that provided you take morals out of the equation, can't fail to bankroll.
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micky
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Post by micky on Mar 2, 2020 21:55:15 GMT
No. This was a planned refinance with BC.
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jhamster
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Post by jhamster on Mar 2, 2020 22:29:47 GMT
It's entirely possible the individual is attempting to fund and complete this project to go some way to repaying us, so while on the face of it we are drawing one conclusion, it's entirely possible we don't have all the facts.
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Godanubis
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Post by Godanubis on Mar 3, 2020 2:37:07 GMT
Nobody is losing out till "The Fat Lady Sings" and the figues are out Well we are losing out now...no interest being paid (and we all know it will be a capital loss) We Don't know anything until it concludes which may include other legal means several months down the line.
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averageguy
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Post by averageguy on Mar 3, 2020 12:40:23 GMT
Well we are losing out now...no interest being paid (and we all know it will be a capital loss) We Don't know anything until it concludes which may include other legal means several months down the line. Those months will probably be years and if we will get full capital and interest..I’ll start looking at recipes for cooking hats
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