shimself
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Post by shimself on Dec 1, 2016 22:27:09 GMT
The borrower tells us they buy houses in a few days for cash at 80% discount. EDIT IT WAS THEIR TYPO - 80% OF VALUATION, IE 20% DISCOUNT. Their website case srtudy calls this they gave us a fair price for a sale that was concluded within 2 weeks. They then reckon to sell them within 90 days. As a business ok I'm decided, I don't want to be involved it seems exploitative
But then they tell us they want to borrow £100K to buy more houses. Even at these prices how many houses do they intend to buy with £100K and as presumably they easily double their money within 3 months why do they need this seed money?
Can anyone make any sense of this?
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Post by bracknellboy on Dec 1, 2016 22:59:19 GMT
To make off with it ?
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Dec 1, 2016 23:51:53 GMT
Morally wrong. Busuness case wrong. latest in a string of poor quality loans being brought to p2p platforms.
Allows the sale of a property by vulnerable sellers to avoud financial responsibilities. It does not do this. Consider a couple divorcing - through mediation an agreement on true values is split amicably and then goes to the sharks, sorry solicitors, who are out to maximise their income through the adversarial methods they utilise, but I digress.
Using companies like this one allows one party to reduce the valuation so decreasing the available funds for distribution. Wonder how a judge might react and the cost to the seller as the proportion of other assets are given to the none seller as compensation.
As for selling to avoid repossessions then this area leads to further complications. Many mortgage lenders look for ways to avoid repossessions , if you talk to them, as they are expensive. These mostly allow the occupant to remain housed. I would lay money out that this company does not give sellers that information! I would not expect them to point sellers to independent debt advice organisations either.
Please look at the things written by media and then make your decision if you wish to risk fca clamping down on the company and losing your money.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,441
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Post by stub8535 on Dec 2, 2016 10:22:43 GMT
Interesting that company rep is saying that this offering is like invoice discounting. Ah, once a bulsxxxter always a marketer. It does not matter how much you polish a txxx it is still a txxx!
NH admitted 80% is mistake and will em all later today.
Still bargepole time for me though.
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Post by jackpease on Dec 2, 2016 10:29:28 GMT
I think this is a mistake - MOney & co do indeed say "at 80" discount but i think they mean 80% of market price
Webuyanyhome.com's website has the following within the faqs: "warning of other firms unexpectedly high offer price. You should realistically expect a property buying company to offer no more than 85% of the full market value for a quick sale. On the other hand, any offer lower than 70% of the full market value is probably unfair."
Jack P
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,441
Likes: 946
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Post by stub8535 on Dec 2, 2016 10:38:52 GMT
I think this is a mistake - MOney & co do indeed say "at 80" discount but i think they mean 80% of market price Webuyanyhome.com's website has the following within the faqs: "warning of other firms unexpectedly high offer price. You should realistically expect a property buying company to offer no more than 85% of the full market value for a quick sale. On the other hand, any offer lower than 70% of the full market value is probably unfair." Jack P You are right but could be fantastic headline grabbing marketing if one is to be cynical, which, 8f course, I am not..
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Post by westonkev on Dec 5, 2016 17:34:06 GMT
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Post by davee39 on Dec 5, 2016 18:54:17 GMT
Anyone familiar with housing markets other than those in overheated South East would understand this business.
Here in the North East it is not uncommon for normal houses to fail to sell over several months. Where a house is repossessed the Bank may have little interest in maximizing a property value so a sale at Auction could provide substantially less than the 80% potentially offered here.
While I do not wish to defend this company or it's practices, I find it more repugnant that the near extinction of the welfare safety net drives people into its clutches.
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shimself
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Post by shimself on Dec 5, 2016 19:49:31 GMT
Anyone familiar with housing markets other than those in overheated South East would understand this business. Here in the North East it is not uncommon for normal houses to fail to sell over several months. Where a house is repossessed the Bank may have little interest in maximizing a property value so a sale at Auction could provide substantially less than the 80% potentially offered here. While I do not wish to defend this company or it's practices, I find it more repugnant that the near extinction of the welfare safety net drives people into its clutches. No I understand 20% discount, silly me for believ ing the 80%. But tell me why wouldn't a bank want to maximize the value?
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Post by davee39 on Dec 5, 2016 20:35:35 GMT
Any surplus above the amount owing belongs to the borrower not the bank, which is only interested in recovering it's debt and does not want to retain a property long term.
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