adrian77
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Post by adrian77 on Sept 21, 2017 13:38:41 GMT
I am surprised but this loan was closed today - maybe I was wrong to be concerned!
Doing a quick sum I make my return at about 13.5% - tasty!
That said following comments on this forum I am now extremely careful when investing in FS property loans - no second or third loans and LTV under 65%- I don't care if the rate is not high as ,for me, just too much hassle is seeing them go late etc
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mikes1531
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Post by mikes1531 on Sept 21, 2017 15:06:39 GMT
I am surprised but this loan was closed today... adrian77: Why were you surprised? This loan was overdue, and the second-ranking loan was due this week. The borrower had an opportunity to avoid FS's penalty interest rate -- I presume FS charge extra for overdue loans -- and effectively renew the second-ranking loan at a lower interest rate. I take this to mean that the borrower thinks the security is worth at least £230k, and really does want to keep it. ISTM that's good news for FS investors.
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phil
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Post by phil on Sept 21, 2017 16:00:39 GMT
I am surprised but this loan was closed today... adrian77 : Why were you surprised? This loan was overdue, and the second-ranking loan was due this week. The borrower had an opportunity to avoid FS's penalty interest rate -- I presume FS charge extra for overdue loans -- and effectively renew the second-ranking loan at a lower interest rate. You presume wrong, there is no penalty rate. I think that highlights a drawback of this forum, there are too many ill-conceived presumptions and there is too much aimless conjecture.
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rogerthat
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Post by rogerthat on Sept 21, 2017 17:58:20 GMT
Granny's reading of the tea leaves was right then...she said "many a slip twixt cup n lid son..avoid this like the plague"...many thanks Granny
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mikes1531
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Post by mikes1531 on Sept 21, 2017 18:23:15 GMT
This loan was overdue, and the second-ranking loan was due this week. The borrower had an opportunity to avoid FS's penalty interest rate -- I presume FS charge extra for overdue loans -- and effectively renew the second-ranking loan at a lower interest rate. You presume wrong, there is no penalty rate. I think that highlights a drawback of this forum, there are too many ill-conceived presumptions and there is too much aimless conjecture. phil: Are you presuming that, because FS don't pay their investors higher rates for overdue loans, FS don't charge their borrowers penalties for being overdue? Or have you either seen a FS loan contract or been told by FS that they don't charge any such fees?
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phil
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Post by phil on Sept 24, 2017 3:19:08 GMT
You presume wrong, there is no penalty rate. I think that highlights a drawback of this forum, there are too many ill-conceived presumptions and there is too much aimless conjecture. phil : Are you presuming that, because FS don't pay their investors higher rates for overdue loans, FS don't charge their borrowers penalties for being overdue? Or have you either seen a FS loan contract or been told by FS that they don't charge any such fees? I am not presuming anything. I try and keep my posts factual for the general good of the forum. FS don't charge a penalty interest rate so I'm afraid your statement " The borrower had an opportunity to avoid FS's penalty interest rate" is hogwash. Too many ill-conceived presumptions on this forum leading to a general dumbing down. FS don't bite if you ask them something, send them a message and ask them, if I'm wrong (which I'm not) I'll give you a heartfelt apology.
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mullet
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Post by mullet on Dec 3, 2017 22:43:08 GMT
The borrower is now looking to borrow money against the freehold of the individual flats.
FS has provided a valuation report for the following 21 flats: 3, 4, 5, 6, 17, 19, 20, 26, 28, 30, 31, 35, 36, 43, C10, 47, 51, C11, 56, 57, 63
However, the loans are against flats 22, 55 & 65
I would have thought these 3 flats should be amongst the 21 that were valued ...or am I missing something?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 3, 2017 22:48:43 GMT
Who knows mullet, P2P investing gets murkier by the day (depressing isn't it), wish I could help you, and myself, perhaps the Dude will ride in with some sage snippets?!!
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Post by Deleted on Dec 4, 2017 8:09:50 GMT
I think the question should be is FS any good at managing property loans?
Right now I don't think there is much evidence that they are. Perhaps I'll look again in 2019.
Gently selling my undefaulted prop loans here.....
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adrian77
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Post by adrian77 on Dec 4, 2017 8:28:14 GMT
I too don't quite understand what is going on - also I don't understand why the borrower can't borrow much cheaper than FS.
I read
Well how honourable is it to cancel contracts ? If this chap or chappesse is happy to mess around former buyers then how is he going to treat FS i.e. our money
I have had student tenants in the past - most were fine but some were appalling and cost me a lot of money....
Personally I won't touch this one with a bargepole....
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09dolphin
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Post by 09dolphin on Dec 4, 2017 8:40:40 GMT
There is no valuation report for these loans. The valuation report used refers to other rooms within the property.
The valuation report is for a separate and previous loan which comments on the building (so would be valid for this loan) and states that one room is 8.0 SqM. another room is 14.5 SqM and all the others somewhere in the middle. Some rooms have a bathroom and some have a shared bathroom.
Before I considered lending I would need to know if the room has private facilities and the square footage of the room.
Why are FS putting forward a loan with only information (minimal) about the shell of the building?
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locutus
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Post by locutus on Dec 4, 2017 9:19:01 GMT
<snip> Before I considered lending I would need to know </snip> I'm curious. Almost your entire post history is critical of FS. Even as recently as Nov 9th, you state: Also, in October, you stated that you were reporting FS to the FSA. So are you really thinking of investing in this loan?
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Post by dan1 on Dec 4, 2017 9:34:51 GMT
The borrower is now looking to borrow money against the freehold of the individual flats. FS has provided a valuation report for the following 21 flats: 3, 4, 5, 6, 17, 19, 20, 26, 28, 30, 31, 35, 36, 43, C10, 47, 51, C11, 56, 57, 63 However, the loans are against flats 22, 55 & 65 I would have thought these 3 flats should be amongst the 21 that were valued ... or am I missing something? If you take a look at the Assets tab for each loan you'll see the rooms have been re-numbered since the valuation... Rm 55: Note that the room numbers have since been re-ordered and this room is room C10 on the valuation report. Rm 22: Note that the room numbers have since been re-ordered and this room is room 20 on the valuation report. Rm 65: Note that the room numbers have since been re-ordered and this room is room C11 on the valuation report. All the rooms are included in the valuation report.
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baldpate
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Post by baldpate on Dec 4, 2017 9:53:34 GMT
This room number change updates have been made within the last 30 minutes (probably as a result of complaints to FS - mine included) - so previous comments on the subject were perfectly valid at the time they were written.
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09dolphin
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Post by 09dolphin on Dec 4, 2017 10:02:12 GMT
<snip> Before I considered lending I would need to know </snip> I'm curious. Almost your entire post history is critical of FS. Even as recently as Nov 9th, you state: Also, in October, you stated that you were reporting FS to the FSA. So are you really thinking of investing in this loan? About 1 year ago I was becoming increasingly concerned about the management of loans and the valuation. Hence my decision to stop lending. At this time last year I had a little over £750K invested in FS. Now my total investment is slightly under £15K (note that £10K is tied up in the Whitchurch and power boat loans) but the remaining £5K is in active investments.
Yes I have decided to invest in FS loans again. The difference is that previously my investments in individual loans was between £5K - £10K whereas now it is between £50.00 and £100.
The reason for my mainly critical posts is that I think FS are guilty of mismanagement (or perhaps it is kinder to say incompetence) of the majority of property loans where the borrower has problems with repayment. I assume you regard the valuations and management of late loans as acceptable.
I hope I have satisfied your curiosity. Yes I did contact the FSA because I was really unhappy with their management of the Whitchurch loan. That is a "work in progress"
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