Two + Five Park Homes DEFAULT (Tiny Partial Recovery)

Interesting quote but I would say to FS that we are not in the US and I suspect the market is  very different- for a start these things seem vastly cheaper e.g. 
Which is a tad less than the £165K TRADE valuation - in the US the profit mark-up seems to be about 25%. If the same in the UK then this means these caravans will each sell for over £200K!


In the UK owning such homes can be very problematical as per below from the Guardian


 The first loan was due to complete in 26/02/2017 so the final repayment looks very likely at being a year late with say 20% on £165K x 12 months =£33K
interest  on  non performing assets and possibly not even a site to place them?

My research indicates ,as mentioned elsewhere, the market is really down over winter
Despite being of the age to downsize I would not touch one of these things due to all the bad press from dodgy site owners...

Think Smutty Stick!

Looks like I am the only one holding on here; latest update 2 March not encouraging; a default looming perhaps 

What's the problem - when I did new builds I would often order the materials etc and then look for a building plot! So where is the owner going to store these damn things - in America?
However much do these things cost to store -they will hardly fit in an average lock-up will they! And I doubt they will fit in the FS secure storage unit!

This is a joke and I wonder what is actually going on here - as Rogerthat said it is entertaining for those of us with a nibble but probably not for those of us with a hefty sum invested.




what for 2 pre-fabricated structures without a site and fitted services- I don't think so and not according to my research where you can buy large units retail for £45K + vat and upwards.

I have just seen an FS quote which said 5 homes were worth 381K trade which I think is high but a lot less than above.

Well the manufacturers are going to want paying (if not yet done)  and they sure as Hades aren't going to park them on their premises for free

Please don't tell me this chap has 7 park homes to pay for, hasn't sold any and has nowhere to site them! 

This chap seems to have loans all over the place (11 active one including renewals and additional loans ?) - I think he has 5 overdue FS loans for £223K but just too busy to decipher what is happening here.  Maybe this chap did not realise that planning in the UK is much stricter than some parts of America and America has a vastly lower population density than we do. 

And in the unlikely scenario this chap goes bust and returns to the US?

On the plus side this chap is not going to lose as much as The Donald did in Alantic City- he should have listened to his Father who said that one would end in tears...

Am I the only one who is very worried by this one?

I think despite 2 loans by the same lender we have congflated loans for 2 and  5 Park Homes

This chap has borrowed money for about a year now to have 5 homes built and has not moved them to site let alone got them for sale.


I think he has borrowed £228K + £165 + £33K = £426K  and these loans are all in arrears
so how on earth is this chap going to settle these loans. As I see it - he won't unless he borrows even more money! if we take 426K over a year that is over 120K interest so say £500K, to be conservative, owing. The security is 5 Park Homes which I don't think will sell for anywhere near £100K each and especially if a distressed sale.

It may seem harsh but I think FS should repossess them NOW and if practical ask the manufacturer to sell them ,whilst they are brand new, from their yard at say cost less 20%.

Or failing that send them straight to auction.

Otherwise this chap has to pay transport costs and plonk them on a site (which he may not yet have)  and then try and sell them either with or without services and all the time he is clocking up interest at 2.4% per month on a daily basis. I just don't see how it is financially feasible to borrow money at such a high rate to buy such homes and then sell them at a profit to cover relocation and selling and construction costs...
I may be wrong but this looks yet another disaster to me and I will be surprised if there is over 50% recovery.

Any comments?

Having looked at the photographs I'm not surprised they won't sell.

Taking Adrians figure of the debt being £500k for 5 mobile homes in question, the borrowers business is making them and plenty of them as there is not much to a mobile home. I dont believe for one minute some or all could not have been sold. They have not because the supposed value does not reflect the true market price so if they sold one it would expose the sham. You only have to look on the internet to see how much you can buy one for. FS should have asked to see the books last time they visited the borrower to see just what they are getting for one, I doubt they did. The loans will default, the borrower is not bothered if FS take possession and sell them as he has had his money, in fact he probably hopes they do as it will solve his problem.  In the end I can see a 50% loss on this one