r00lish67
Member of DD Central
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Post by r00lish67 on Nov 26, 2016 17:03:22 GMT
I've asked a question of SS on the Gloucs loans on a separate thread, but it can equally be applied to other negative territory loans. Does anyone have a clear view as to how SS handle interest payments in this situation? Some loan updates state clearly that the borrower is continuing to make interest payments, whilst others, often the more contentious ones, noticeably don't.
For those other ones, does this mean that SS are increasing the LTV as they fall further behind? Or should we be taking it for granted that interest is being received? Or something else?
I picked the Gloucs loans in particular as it has been well publicised that the borrower plus husband are both bankrupt, so it seems far from obvious to me that interest payments are being made. As another example ( as I always pick on Gloucs, I admit), PBL074, which has apparently been in legals since June with repayment last expected 'shortly' on the 16th September - again, is the owed interest just being added to the loan?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Nov 26, 2016 17:19:47 GMT
I've asked a question of SS on the Gloucs loans on a separate thread, but it can equally be applied to other negative territory loans. Does anyone have a clear view as to how SS handle interest payments in this situation? Some loan updates state clearly that the borrower is continuing to make interest payments, whilst others, often the more contentious ones, noticeably don't. For those other ones, does this mean that SS are increasing the LTV as they fall further behind? Or should we be taking it for granted that interest is being received? Or something else? I picked the Gloucs loans in particular as it has been well publicised that the borrower plus husband are both bankrupt, so it seems far from obvious to me that interest payments are being made. As another example ( as I always pick on Gloucs, I admit), PBL074, which has apparently been in legals since June with repayment last expected 'shortly' on the 16th September - again, is the owed interest just being added to the loan? I (and many others) have asked SS them the same questions, and the response that is given is that all negative loans were having their interest serviced on a rolling basis. As soon as this stops, the loan defaults. However, there has been occasions where I pretty sure this hasn't been the case (maybe I'm just being paranoid...). This was discussed in some detail HERE 
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r00lish67
Member of DD Central
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Post by r00lish67 on Nov 26, 2016 17:39:10 GMT
Thanks @cooling_dude, I knew this must have been discussed before, not sure how I missed that. I think I'd still like to see SS confirm how exactly the bankrupt borrower is servicing those payments in this instance however, so we'll see if they reply.
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mikes1531
Member of DD Central
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Post by mikes1531 on Nov 27, 2016 18:18:31 GMT
I (and many others) have asked SS them the same questions, and the response that is given is that all negative loans were having their interest serviced on a rolling basis. As soon as this stops, the loan defaults. However, there has been occasions where I pretty sure this hasn't been the case (maybe I'm just being paranoid...). : I don't think you're being paranoid. IIRC, SS actually said -- somewhere on this forum -- that there were some cases where the prepaid interest had been used up and the borrower was unable to make interest payments but that they (SS) have chosen not to declare the loan a default because they were confident that the security was robust enough to allow recovery of all amounts owed, including interest accrued during the negative days remaining period of the term. In those cases, SS/Lendy were making the interest payments to investors from their reserves and would recover those payments from the security sale proceeds. Again IIRC, there was one loan where they specifically indicated they would cover the interest payments for 2-3 months while waiting for the security to be converted into cash. Unfortunately, I'm not very good at searching through the forum archives to locate the appropriate posting(s) from SS, but hopefully someone else will be able to find them.
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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 Nov 27, 2016 20:07:17 GMT
I (and many others) have asked SS them the same questions, and the response that is given is that all negative loans were having their interest serviced on a rolling basis. As soon as this stops, the loan defaults. However, there has been occasions where I pretty sure this hasn't been the case (maybe I'm just being paranoid...). : I don't think you're being paranoid. IIRC, SS actually said -- somewhere on this forum -- that there were some cases where the prepaid interest had been used up and the borrower was unable to make interest payments but that they (SS) have chosen not to declare the loan a default because they were confident that the security was robust enough to allow recovery of all amounts owed, including interest accrued during the negative days remaining period of the term. In those cases, SS/Lendy were making the interest payments to investors from their reserves and would recover those payments from the security sale proceeds. Again IIRC, there was one loan where they specifically indicated they would cover the interest payments for 2-3 months while waiting for the security to be converted into cash. Unfortunately, I'm not very good at searching through the forum archives to locate the appropriate posting(s) from SS, but hopefully someone else will be able to find them. Think this is the post you are referring to p2pindependentforum.com/post/123504/thread [ Ive got the required search term for that commited to memory as it keeps coming up - though had forgotten Id linked to it in the FAQ for reference] Its PBL056 that Lendy are covering interest
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