PBL056 W***** Farm, Somerset DEFAULT

so should 56/64 be flagged red?

May depend on if lenders have still been receiving interest paid. I seemed to have read that SS may take it on the chin for 1 or 2 loans where they think there is sufficient equity in the security. Use of their receiver to oversee sale is not counted as an automatic default, such as the recent Hackney sales I believe.

"There may also be some consideration over possible reputational damage (to SS?), with the 'fat cat' lender being seen as not giving the property fair chance on the open market to return a decent price so that borrower may at least walk away with something."

Oh, yes... this particular borrower(!!) wouldn't like that to happen to him, would he? He would need the services of that solicitor of his who is no longer available ....

 

It is not law, good practise and law dictates that the Receiver must obtain the "best price in the circumstances."  It is common belief that a auction will usually not achieve as good a price as a open market sale, empirically apart from in exceptional circumstances that does seem to be the case.

A Receiver (or Administrator) is not bound by any law to follow any particular course of action.  Every property/asset will be assessed on its merits, the default position will be to offer it on the open market through the most appropriate selling agent (eg a specialist in the field if it is an unusual asset, or, say, Savills if it is a large chunk of agricultural land) and if no buyer is found in a reasonable timescale place it in an auction, often with a reserve.  On PBL 020 if the udate of 23 December is correct that is exactly what happenned, although there is no evidence of the property being put into auction yet, although the timescale is now getting a little tight as the scheduled date is February.

However if circumstancfes dictate there is nothing in law or practise to stop a receiver putting the property into auction of the day of his appointment, if it sells there is no legal remedy to reverse that sale.  At some later stage the Receiver might be clled upon to justify that action and may even be sued for negligence or thrown out of his professional body but there is nothig that can be done before the fact to proactively stop him.  Of course given the potentially dire consequences of acting unprofessionally few, if any, receivers will sell by auction before being satisfied that the market has been tested.

EDIT  I think there may be a answer to the confusion as to why people believe there is a specified time limit for Receivers, there is one for Baliffs and Sheriffs (England and Wales ones not Scotland), if a baliff or sherrif seizes goods in respect of a judgement debt the owner has 28 days to pay or the goods will be put into auction.  This does not apply to Receivers.

Looking at the actual time of that SS update, not only have 3 months passed... we're about a week away from four months having passed.

It says it is defaulted.
You can't see it from phone, but can from tablet or laptop.
However, it should be taken from available loans to defaulted loans.

Goes without saying.

:-)