elliotn
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Post by elliotn on Apr 27, 2017 12:59:54 GMT
I had only a token sum in Telford but had got rather used to seeing it at the top of my list of overdue loans. It looks like FS took a hit on this one, so yes, thanks indeed to FS. I'm not in this one but I am curious as to why FS would take a hit and how much? FS have been known to make loans whole, presumably as sign of goodwill to maintain investor confidence (especially on smaller sized loans).
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Liz
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Post by Liz on Apr 27, 2017 13:51:03 GMT
I'm not in this one but I am curious as to why FS would take a hit and how much? FS have been known to make loans whole, presumably as sign of goodwill to maintain investor confidence (especially on smaller sized loans). So they are distorting the losses figure! I might be aggrieved if they compensated 1 loan and not another.
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Steerpike
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Post by Steerpike on Apr 27, 2017 14:54:25 GMT
FS have been known to make loans whole, presumably as sign of goodwill to maintain investor confidence (especially on smaller sized loans). So they are distorting the losses figure! I might be aggrieved if they compensated 1 loan and not another. My reading was that there was not a loss but that they forewent their fees, so no distortion IMO.
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elliotn
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Post by elliotn on Apr 27, 2017 15:02:16 GMT
FS have been known to make loans whole, presumably as sign of goodwill to maintain investor confidence (especially on smaller sized loans). So they are distorting the losses figure! I might be aggrieved if they compensated 1 loan and not another. There is a list of all loans that did not fully redeem on the website as well as details of those recovered. There's no PF so investors should expect nothing extra (and be grateful if they do).
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mikes1531
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Post by mikes1531 on Apr 27, 2017 19:52:26 GMT
I'm not in this one but I am curious as to why FS would take a hit and how much? FS have been known to make loans whole, presumably as sign of goodwill to maintain investor confidence (especially on smaller sized loans). My reading was that there was not a loss but that they forewent their fees, so no distortion IMO. ISTM that if they hadn't foregone their interest/fees, the investors in the subordinate FS loan would have taken a very significant hit -- possibly as much as 100%? That would have been a PR and investor confidence disaster for FS, so I can see where they would consider their decision to be money well 'spent'. What this episode probably does illustrate, however, is how substantial receivers' fees can be, especially on relatively small loans, and why FS really, really, want to avoid calling in receivers if they can. Investors can complain about FS bending over backwards for borrowers rather than sending in receivers as soon as a loan goes overdue, but that may be the appropriate thing to do if doing so means a greater probability of a successful outcome for investors. It's easy to grumble with the benefit of 20/20 hindsight!
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09dolphin
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Post by 09dolphin on Apr 27, 2017 20:34:02 GMT
I really do hope that FS at least repay capital on The Scottish Boatyard. the Knaresborough loan, the Domain Names and all the other loans that are defaulted. However I really don't expect them to as the recovery costs increase on a daily basis and it would be awfully expensive for them.
I have no idea if FS have the resources to pay investors but it's only a matter of time before there are so many large loans that default it becomes prohibitive. IMHO FS should have started to question the valuations that are based on hope rather than the actuality and start to question if we can afford to believe the excuses for non payment/ lack of promised renewal should be taken at face value.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 27, 2017 20:43:57 GMT
I really do hope that FS at least repay capital on The Scottish Boatyard. the Knaresborough loan, the Domain Names and all the other loans that are defaulted. However I really don't expect them to as the recovery costs increase on a daily basis and it would be awfully expensive for them.
I have no idea if FS have the resources to pay investors but it's only a matter of time before there are so many large loans that default it becomes prohibitive. IMHO FS should have started to question the valuations that are based on hope rather than the actuality and start to question if we can afford to believe the excuses for non payment/ lack of promised renewal should be taken at face value.
Yep!
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SteveT
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Post by SteveT on May 17, 2017 16:04:44 GMT
Good news: the 2 Bristol Properties loan is to be made even larger tomorrow ... (1513094723)
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locutus
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Post by locutus on May 17, 2017 16:15:02 GMT
Good news: the 2 Bristol Properties loan is to be made even larger tomorrow ... (1513094723) Hopefully, we'll see a revised VR.
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mikes1531
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Post by mikes1531 on May 17, 2017 20:16:08 GMT
Good news: the 2 Bristol Properties loan is to be made even larger tomorrow ... (1513094723) Hopefully, we'll see a revised VR. Without the VR, there's no way to understand why the valuation is up 18% in less than a year. If it's due to a 'residual' calculation based on the new PP application, it will be very dependent on the approval of the PP. And if that's the case, I'm not sure I want to get involved. Unlike the loans released today, I don't expect we'll need to make a quick investment decision on this one. I'll be surprised if as many as half of the current investors in the old loan will be rolling their investment forward automatically, especially as the loan is more than three months overdue at the moment. So I expect there will be nearly £1M of the new loan available when it goes live tomorrow.
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09dolphin
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Post by 09dolphin on May 18, 2017 14:48:46 GMT
I think the 2 Bristol properties may take several weeks or more to fill and I look forward to getting my investment back - but I think it could be quite a while before I do.
In all honesty who would invest in this loan bearing in mind the borrowers track record. I know I wouldn't even consider reinvesting. Perhaps FS are hoping people who have transferred an existing ISA will not be cautious and be desperate to invest. I really do hope I'm wrong. What I don't understand is how FS can put this loan up for investors knowing the track record of the borrowers. It strikes me as being "sharp practice" at best and potentially taking advantage of new investors.
In MHO this loan should never have been renewed but have been classed as "unredeemed".
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SteveT
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Post by SteveT on May 18, 2017 15:08:17 GMT
In MHO this loan should never have been renewed but have been classed as "unredeemed".
Huh? Why? The borrower was clearly working on a lower cost refinance (plenty of evidence of this shared with FS) which fell through for some reason. So he's obliged for now again to refinance at FS rates. What exactly would defaulting the loan and appointing Receivers achieve?
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SteveT
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Post by SteveT on May 18, 2017 16:16:55 GMT
I think the 2 Bristol properties may take several weeks or more to fill and I look forward to getting my investment back - but I think it could be quite a while before I do. No need for you to worry about time taken to get your money back. It appears to have been underwritten and is being repaid.
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r00lish67
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Post by r00lish67 on May 18, 2017 16:17:43 GMT
I think the 2 Bristol properties may take several weeks or more to fill and I look forward to getting my investment back - but I think it could be quite a while before I do.
In all honesty who would invest in this loan bearing in mind the borrowers track record. I know I wouldn't even consider reinvesting. Perhaps FS are hoping people who have transferred an existing ISA will not be cautious and be desperate to invest. I really do hope I'm wrong. What I don't understand is how FS can put this loan up for investors knowing the track record of the borrowers. It strikes me as being "sharp practice" at best and potentially taking advantage of new investors.
In MHO this loan should never have been renewed but have been classed as "unredeemed".
Your 'quite a while' lasted about an hour 09dolphin  I too am very glad to be well out of this one. This was a chunky loan, and along with repayment of H*** B** this afternoon, the SM could be in for a further denting. Will be FFF for scraps of boat soon!
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09dolphin
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Post by 09dolphin on May 18, 2017 18:48:49 GMT
I think the 2 Bristol properties may take several weeks or more to fill and I look forward to getting my investment back - but I think it could be quite a while before I do. No need for you to worry about time taken to get your money back. It appears to have been underwritten and is being repaid. Glad to have my money back. Only 3 months late. I only start to worry about a loan when it's 9 - 12 months overdue. Even though it's underwritten I still think it will be quite some time before it's funded by people other than underwriters - time will tell.
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I too am very glad to be well out of this one. This was a chunky loan, and along with repayment of H*** B** this afternoon, the SM could be in for a further denting. Will be FFF for scraps of boat soon!