stub8535
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Post by stub8535 on Nov 16, 2016 1:49:37 GMT
Has anyone seen a loan on fs where the property, on which the valuation is based, has deen fire damaged whilst in the loan period and an insurer has paid out?
What happens with the money? Is it normally paid back to the lenders as first charge holders?
As the value of the asset has reduced the insured payout is to make good the value I would think or the new, reduced value, should be reflected in a new ltv with an increase in interest rate to reflect the risk.
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Post by martin44 on Nov 16, 2016 8:09:40 GMT
The only loan i can recall that was subject to an insurance claim was a powerboat, around 12 months or so ago, FS stated that the boat was insured and they would be the sole recipient in the event of a claim, the boat was subsequently written off, and the insurance paid the full amount directly to FS , aiirc all within a matter of weeks.
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Post by fundingsecure on Nov 16, 2016 9:34:49 GMT
The terms of the loan specify that the insurance proceeds must be paid to FundingSecure. Our lawyers have already been briefed to liaise with the insurance company. It is likely to take 2-3 months before the proceeds are paid out.
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max
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Post by max on Nov 17, 2016 22:30:27 GMT
The terms of the loan specify that the insurance proceeds must be paid to FundingSecure. This little detail appears quite relevant and not so obvious IMO. Perhaps worth reporting it in the loan or security description.
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stub8535
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Post by stub8535 on Nov 17, 2016 23:05:16 GMT
The terms of the loan specify that the insurance proceeds must be paid to FundingSecure. This little detail appears quite relevant and not so obvious IMO. Perhaps worth reporting it in the loan or security description. I agree Max. I would also expect a comment from ts to be made available to all lenders as to why, whe fs was notified it felt it right, as there were only 2 weeks left on the loan, to not report the fire to lenders. i would also ask why, as the insurers have agreed total loss, it is to take 2 to 3 months before the payout? the other aspect I would expect fs to comment on is the expected date for the appeal decision. 10-12 weeks means nothing without knowing when the appeal submission happened.
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mikes1531
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Post by mikes1531 on Nov 18, 2016 3:24:32 GMT
When this thread started, I thought we were discussing a theoretical situation. The previous message leads me to believe this is not just theoretical.
Is this a real case? If so, could someone please supply the loan number?
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SteveT
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Post by SteveT on Nov 18, 2016 7:10:45 GMT
Greenwich
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stub8535
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Post by stub8535 on Nov 18, 2016 10:06:10 GMT
Thanks moderator.
Did not want to fall foul of forum rules nor put barriers in the way of old loan lenders getting their money back. As the loan has now been fully underwritten then that consideration is past.
i do notice that the new loan makes no mention of the fire nor to the planning appeal and the time frames attached which I would have thought were fundamental pieces of data for investors to assess the risk.
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SteveT
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Post by SteveT on Nov 18, 2016 10:16:51 GMT
Thanks moderator. Did not want to fall foul of forum rules nor put barriers in the way of old loan lenders getting their money back. As the loan has now been fully underwritten then that consideration is past. i do notice that the new loan makes no mention of the fire nor to the planning appeal and the time frames attached which I would have thought were fundamental pieces of data for investors to assess the risk. The fire insurance payment is mentioned in the valuation window (click on the magnifying glass icon)
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stub8535
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Post by stub8535 on Nov 18, 2016 10:56:42 GMT
Thanks moderator. Did not want to fall foul of forum rules nor put barriers in the way of old loan lenders getting their money back. As the loan has now been fully underwritten then that consideration is past. i do notice that the new loan makes no mention of the fire nor to the planning appeal and the time frames attached which I would have thought were fundamental pieces of data for investors to assess the risk. The fire insurance payment is mentioned in the valuation window (click on the magnifying glass icon) Agreed but there is no mention that it will not, in spite of the insurers having inspected and agreed total loss, be paid for 2 to 3months. The description does not elaborate on the current planning appeal, why it was raised, when and the timeframe. It seems that FS continue the poor, lazy practice of merely copying the out of date particulars from the replaced loan to the new without considering lenders needs. I hope, but don't expect it soon, to see this change.
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duck
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Post by duck on Nov 18, 2016 16:03:15 GMT
An update covering the fire was added an hour ago.
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mikes1531
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Post by mikes1531 on Nov 18, 2016 22:56:15 GMT
When this thread started, I thought we were discussing a theoretical situation. The previous message leads me to believe this is not just theoretical. Is this a real case? If so, could someone please supply the loan number? Thank you. I'm an investor in this loan and was completely oblivious of the situation. I cannot believe that fundingsecure did not consider the fire -- bad enough to require the building to be demolished -- wasn't important enough news to bring to the attention of their investors. How many investors allowed their previous investment to be rolled forward into the renewal loan without realising the situation?
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fp
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Post by fp on Nov 18, 2016 23:00:01 GMT
I got settled up for this one today, having checked it a couple of days ago I don't recall seeing any mention of a fire
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mikes1531
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Post by mikes1531 on Nov 19, 2016 2:34:17 GMT
I got settled up for this one today, having checked it a couple of days ago I don't recall seeing any mention of a fire There was no update about this for the original loan. The info is only on the renewal loan -- added on 18/Nov -- and someone intending to renew might not have bothered to look at the details because they thought they knew what the loan was about.
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duck
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Post by duck on Nov 19, 2016 5:29:13 GMT
I got settled up for this one today, having checked it a couple of days ago I don't recall seeing any mention of a fire There was no update about this for the original loan. The info is only on the renewal loan -- added on 18/Nov -- and someone intending to renew might not have bothered to look at the details because they thought they knew what the loan was about. I certainly didn't know about the fire but had decided not to renew. My investment was back in my account (renewal underwritten) well before I knew about the fire ..... but strangely my mind went instantly to this loan.
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