j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188 
Likes: 540
|
Post by j on May 23, 2014 21:36:38 GMT
It might only need one to make the move, and the lemmings might start a rush to the bottom. I can be patient ... Probably still wouldn't be worth the risk for a few pennies worth
|
|
|
|
Post by jackpease on May 24, 2014 5:58:48 GMT
On the house valuation issue raised by BB in the original post, £220k is very different to £275k and does raise the issue about the automatic 'secure as houses' assumption. I wonder if LTV calculations would better be done against rushed sale valuations rather than open market valuations?
Jack
|
|
|
|
Post by Ton ⓉⓞⓃ on May 24, 2014 10:59:53 GMT
On the house valuation issue raised by BB in the original post, £220k is very different to £275k and does raise the issue about the automatic 'secure as houses' assumption. I wonder if LTV calculations would better be done against rushed sale valuations rather than open market valuations? Jack I had the idea that was the rush value, but they now want to sell it immediately hence the 50k hit to avoid the charges. Please correct me if I misunderstand. IN EDIT £275k is the OMV and jackpease is right.
|
|
|
|
Post by andrewholgate on May 24, 2014 12:48:32 GMT
I've been told today that the PG is good and that clauses within it allow the guarantee to pass to the estate. The Probate team dealing with this have acknowledged this and our legal charge.
I am confident that a clean exit will be achieved and no loss to lenders.
As I have said before, default is not a bad thing as long as your documentation is robust and you manage the process quickly and efficiently. It seems (so far) we are passing muster.
A
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on May 24, 2014 13:03:22 GMT
Thank you for the frequent updates. Now, can you make it stop raining, please?
|
|
|
|
Post by Ton ⓉⓞⓃ on May 24, 2014 16:19:24 GMT
I've been told today that the PG is good and that clauses within it allow the guarantee to pass to the estate. The Probate team dealing with this have acknowledged this and our legal charge. I am confident that a clean exit will be achieved and no loss to lenders. As I have said before, default is not a bad thing as long as your documentation is robust and you manage the process quickly and efficiently. It seems (so far) we are passing muster. A What would be the correct approach to a general turn down in the economy, where all property values were being eroded so that the LTV's on loans etc were over 80% and heading for 100%; foreclosure on many?
|
|
|
|
Post by Ton ⓉⓞⓃ on May 25, 2014 10:50:29 GMT
I found it surprisingly hard to do a MarkDown but I think I've worked it out and if you need help These are my findings. I don't envy chris and the front end team putting together the Help Guide for AI or the AC web-site. |
|
pikestaff
Member of DD Central
Posts: 2,187
Likes: 1,546
|
Post by pikestaff on May 25, 2014 11:17:38 GMT
What would be the correct approach to a general turn down in the economy, where all property values were being eroded so that the LTV's on loans etc were over 80% and heading for 100%; foreclosure on many? I would not expect loans secured on property to have a LTV covenant, and nor should they. Would you borrow on that basis? Unless some other covenant was breached we would just have to lump it. It's different where loans are secured on other assets such as stock and debtors, where there will be covenant to maintain them at a certain level. But that kind of security has a habit of disappearing when things go bad. Edit: Andrew Holgate has corrected me on this, see p2pindependentforum.com/post/13006/thread. Apparently there are LTV covenants although, as he explains, they can be hard/expensive to enforce.
|
|
|
|
Post by Ton ⓉⓞⓃ on May 26, 2014 12:24:08 GMT
AM holding now down to 23.7k from 33.56k (My first reading after I saw it of the AM after the news broke.)
As 75% of the loan is expected fairly quickly to be repaid, for anyone who seriously wants to benefit from default interest it means you have to take a greater risk. I have now bought £400.
|
|
agent69
Member of DD Central
Posts: 6,044
Likes: 4,437
|
Post by agent69 on May 26, 2014 14:59:29 GMT
Only £10k remaining on the AM. Are these all being bought, or are people pulling them because of lack of interest?
|
|
andy2001
Member of DD Central
Posts: 361
Likes: 34
|
Post by andy2001 on May 26, 2014 15:01:48 GMT
Only £10k remaining on the AM. Are these all being bought, or are people pulling them because of lack of interest? Auto invest had not been able to cancel mine, but it did today, so this will have a lot to do with it.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 26, 2014 15:09:03 GMT
Only £10k remaining on the AM. Are these all being bought, or are people pulling them because of lack of interest? Auto invest had not been able to cancel mine, but it did today, so this will have a lot to do with it. do you mean AI wouldn't cancel a purchase or a sale?
|
|
andy2001
Member of DD Central
Posts: 361
Likes: 34
|
Post by andy2001 on May 26, 2014 15:28:45 GMT
Auto invest had not been able to cancel mine, but it did today, so this will have a lot to do with it. do you mean AI wouldn't cancel a purchase or a sale? I had 2 units for sale, and the AI could not be set to remove them. There now no longer for sale.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 26, 2014 15:28:50 GMT
AM holding now down to 23.7k from 33.56k (My first reading after I saw it of the AM after the news broke.) As 75% of the loan is expected fairly quickly to be repaid, for anyone who seriously wants to benefit from default interest it means you have to take a greater risk. I have now bought £400. I'm 'slightly' tempted but keep thinking is it worth the risk for 50p per £100 per month?
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 26, 2014 15:29:57 GMT
andy2001 do you mean AI wouldn't cancel a purchase or a sale? I had 2 units for sale, and the AI could not be set to remove them. There now no longer for sale. So as said earlier it sounds rather than sales happening, units are being taken off sale!
|
|
