East Ham Property (1015203268 - final id) DEFAULT

Take your points stevio & ilmoro, but at what point does it become obvious that you are being conned and taken for a mug?



This "Solicitor" has had two weeks to provide a simple proof of funds and they've ignored this very reasonable request, so obviously the funds don't exist.

In fact this "Solicitor" is complicit:  04/03/2017
- Confirmation, from lawyer, that completion will be on Friday 10th March. This loan will be repaid and small secondary loan renewed.

If you read through the Loan Updates they're farcical, this is another Jock Boatyard.

The Borrower has had ample opportunities and the LTV is low enough to proceed with a Default now, otherwise we'll still be "Awaiting Funds" in six months time.

IMHO.
 

When you make a loss

Majority P2P loans overun. If you don't like waiting or think your being conned if it takes longer than you expected, suggest maybe FS, or even P2P is not for you

Yes, but ISTM that there's a difference between overrun and OVERRUN.  This six-month loan will enter its 12th month next week.

There's one other aspect that I don't think has been mentioned...  FS have a slight conflict of interest in this loan.

As ozboy has pointed out, the LTV on this loan is low enough (52%) that it ought to be possible to send in receivers and manage to exit the loan without loss, even after a fire sale.  So after all the failed promises from the borrower's solicitor one might have expected FS to have started that process by now.  The problem for FS is that this isn't the only loan they have made on the property.  There's a Supplemental loan of £63k, and  the LTV on that loan is 67%.

A receiver sale that netted a bit over 60% of the security 'value' would result in the first loan investors receiving all of their capital and accrued interest -- while the Supplemental loan investors would receive absolutely nothing at all back!  Investors losing every penny they put into a 'secured' investment is not a story FS would like to have circulated, so they'll naturally be reluctant to call in receivers if there's still a chance of an amicable settlement with the borrower.

ISTM that FS need to achieve disposal proceeds of about 80% of security 'value' to prevent losses to the Supplemental loan investors, and that number will continue to rise as time passes.  This one isn't going to be easy to solve.

I do hope this weekend's update is good news.

The longer this rolls on, the more interest accrues to the primary charge holders, hence the higher the LTV and the position for the supplemental investors worsens.   This all leaves FS in a no win situation. 

Let's just hope for positive news and this is all academic. 

AFAIK the "Professional" who call themselves a "Solicitor" have said a few times now that they have the funds.

Call me old fashioned, but when someone says they have this, and that they will do that, and then they don't, I call it lying.

But this is a "Professional" so that's OK, it simply becomes a "misunderstanding" then doesn't it.

I agree Ozboy, time to start to pull this one in. A problem will arise if the property is still being rented out.

This will mean either the tenant has to be evicted before it can be sold or it is sold with the tenant in situ.

Both options have their obvious drawbacks.

It's best to crack on with it now, the borrow has had since November 2015 to sort out a mortgage and pay off this bridging loan.