micky
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Post by micky on Aug 31, 2018 23:40:11 GMT
I hope so!!
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 1, 2018 2:27:32 GMT
I'm looking at the loan details across all loans and the original loan ( 1781021782) sticks out as having paid the most interest in excess of the basic interest rate. It was active for 224 days, which equates to £131.6k interest at 13%. It actually paid £191.4k interest at an actual return of 18.9%. The excess return of 5.9% exceeds the maximum bonus of 4.0% for investments of £100k+. A question for investors in this loan, did it pay default interest for the period overdue (41 days)?If there was no default interest then I guess FS are paying higher returns to institutional investors, BHs, underwriters, syndicates, etc? I've no problem with this but if this is the case it may further depress actual returns compared to the published statistics for standard retail investors. It's certainly not something you consider when you first look at the statistics page and decide to invest, or not. I was wondering it appears that interest on loans in general is compounded from date of expected settlement. Is this the case ?
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 1, 2018 2:32:01 GMT
2 hours ago 20.30 pm 31/08/18 We have been in regular contact over the last 2 days with the new lender and now with the lender's solicitor. The restriction from the neighbouring developer has been removed (which we can confirm as we checked the land registry this morning). The lender's solicitor is awaiting 3 documents from the purchaser which they are confident they will collect on Monday. We have had confirmation that funds have been deposited with the lender's solicitor in readiness for completion on Monday. Thruppence under the pillow tonight  Perhaps a brass one. Definitely not a silver one
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Post by dan1 on Sept 1, 2018 8:22:44 GMT
I'm looking at the loan details across all loans and the original loan ( 1781021782) sticks out as having paid the most interest in excess of the basic interest rate. It was active for 224 days, which equates to £131.6k interest at 13%. It actually paid £191.4k interest at an actual return of 18.9%. The excess return of 5.9% exceeds the maximum bonus of 4.0% for investments of £100k+. A question for investors in this loan, did it pay default interest for the period overdue (41 days)?If there was no default interest then I guess FS are paying higher returns to institutional investors, BHs, underwriters, syndicates, etc? I've no problem with this but if this is the case it may further depress actual returns compared to the published statistics for standard retail investors. It's certainly not something you consider when you first look at the statistics page and decide to invest, or not. I was wondering it appears that interest on loans in general is compounded from date of expected settlement. Is this the case ? I don't believe it is hence the complaints about long running loans that even if they return full capital & interest the holders will lose out on compound interest if they'd recycled funds into another loan. I ask about default interest because I understand the borrower is liable for default interest/payments to FS.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 2, 2018 3:05:09 GMT
I was wondering it appears that interest on loans in general is compounded from date of expected settlement. Is this the case ? I don't believe it is hence the complaints about long running loans that even if they return full capital & interest the holders will lose out on compound interest if they'd recycled funds into another loan. I ask about default interest because I understand the borrower is liable for default interest/payments to FS. I would think that even the longest of the loans that have paid in full eventually where their interest is not compounded would only amount to <1% reduction in % return of the investment. Say £1000 invested at 12% and is 1 year late. At 6 months when loan due you would have had £1060 which you would have reinvested. So if you invested that for further 6 months loan you would have £1123.6 . Invest that for further 6 months. It would then be the time the late loan paid. You would have £1191.02 ie £1191.2 profit The the late loan would have paid 12% APR only on £1000 which would be £1180 you would only be £11.20 worse off assuming you reinvested the same day you got paid. That is less than 0.8% reduction on the APR not exactly earth shattering. Obviously it would be slightly worse if you boug interest at the five month point where you would have invested £1050. I would presume you would have bought at a discount so probably not that bad. You would loose £9 extra so £20 less still less than 2% on APR. So unless you are very unlucky your returns should be > 10% even with a few late loans and if you mainly buy high discounted loans the additional gains you should get for timely payments should more than compensate for late loan reduced returns. Full diversification should limit losses for loans that result in capital/interest overall loss .
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rogerthat
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Post by rogerthat on Sept 3, 2018 7:50:26 GMT
Well, today's the day isn't it ?  |
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adrian77
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Post by adrian77 on Sept 3, 2018 17:29:35 GMT
just got back from work - no loan update - anybody been in contact with FS
I only have a nibble in this one - if it completed today then some BHs will be laughing but if still no completion..
update - this one is still listed for sale at auction - I note in the legal pack
but in the auction details
I am just confused - any legal chap or chappesse able to comment...
I thank you
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rogerthat
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Post by rogerthat on Sept 3, 2018 21:48:13 GMT
Well ive had one eye on the lappy most of the day for some good news so im a tad miffed  .. ive changed the thrupenny bit for a silver tanner under the pillow tonight and hope for better things tomorrow  |
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micky
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Post by micky on Sept 3, 2018 22:02:40 GMT
Well, 2 days left and then it's to the auction  |
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arby
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Post by arby on Sept 3, 2018 22:12:45 GMT
Well, 2 days left and then it's to the auction Do you think FS will actually go through with the auction? I think it's clear to all concerned that the auction was a threat to hurry the buyer up. Has their bluff been called?
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empirica
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Post by empirica on Sept 3, 2018 22:32:37 GMT
Well, 2 days left and then it's to the auction Do you think FS will actually go through with the auction? I think it's clear to all concerned that the auction was a threat to hurry the buyer up. Has their bluff been called? Isn't the priority question: can FS actually go through with the auction? I can't see anything in the updates which says they have legal control of the asset _ no LPAs / Receivers / Administrators / etc _ and if they haven't, what is to prevent the borrower from pulling it ahead of the auction?
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adrian77
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Post by adrian77 on Sept 4, 2018 7:33:57 GMT
very good question !
I am not sure of the legal position but this one is late so I thought (may be wrong) had the right to repossess it without receivers - would really appreciate a legal opinion. As I said earlier I wonder if FS have effectively defaulted this loan but not posted the full story?
As somebody who deals in similar property (sadly at a lower price but I am working on it)
I am really hoping that FS have had the legal work done propertly by somebody who knows what they are doing. This saga of having exchanged twice with one buyer losing interest and the other one going back in just does not ring true with me and sounds as if FS are desperate to sell this site to anybody
I am genuinely puzzled as to who is calling who's bluff here - does the purchaser want to complete at all or does he want to try his hand at auction where the reserve will probably be much lower than the FS loan amount. I have had clever clog buyers try and force the price down after exchanging and I really hope that this is not the case here
It is now Tuesday and the auction is Thursday - this one is playing out like an episode of Minder!
Glad I just have a nibble and not £300K in this one
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adrian77
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Post by adrian77 on Sept 4, 2018 17:34:21 GMT
first we had
then we had
It's gone awfully quiet hasn't it...well it is now Tuesday evening maybe tomorrow or a quick call to the auction house on Thursday morning?
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trevor
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Post by trevor on Sept 4, 2018 19:00:41 GMT
I predict that on Thursday morning we will get an update that the potential new borrower has made an absolute final definite promise really really to complete on Friday therefore it will not go to auction but surprise surprise on Monday we get a further update .......
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micky
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Post by micky on Sept 5, 2018 8:05:21 GMT
Well, my theory is (I am forever hopeful but a feeling a little nervous right now).. the deal was completed on Monday, FS is 'waiting for the funds to clear' (they have said this to me previously about other loans then they have been repaid a few days later) maybe this way they also get 2/3 days extra interest. FS keep silent in these few days and then we are all relieved to receive payment the morning of the proposed auction.
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.. ive changed the thrupenny bit for a silver tanner under the pillow tonight and hope for better things tomorrow 
