n
Member of DD Central
Yet another Nick
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Post by n on May 3, 2017 10:57:19 GMT
so if i don't auto-renew, i will have my capital returned, as well as the interest, on the filling of the replacement loan? correct
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 3, 2017 11:18:03 GMT
so if i don't auto-renew, i will have my capital returned, as well as the interest, on the filling of the replacement loan? The replacement loan may be filled immediately by underwriting so in those circumstances even if it appears unfilled on the loans list you will get paid as soon as it lists.
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Post by dan1 on May 4, 2017 9:07:31 GMT
I've had my first 'unredeemed' loan. It's a very small loan of £400 (6607253604) so a maximum of 16 investors. Anyway, it's gone straight to 'unredeemed' without any updates, I would have expected an update along the lines of a default notice has been sent giving the borrower 14 days etc. Is this unusual? Perhaps they can't locate the borrower and serve the default notice.
I expect defaults so I'm not concerned. I expect it'll go to auction and be resolved in a few weeks.
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n
Member of DD Central
Yet another Nick
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Post by n on May 4, 2017 9:15:54 GMT
I've had my first 'unredeemed' loan. It's a very small loan of £400 (6607253604) so a maximum of 16 investors. Anyway, it's gone straight to 'unredeemed' without any updates, I would have expected an update along the lines of a default notice has been sent giving the borrower 14 days etc. Is this unusual? Perhaps they can't locate the borrower and serve the default notice. I expect defaults so I'm not concerned. I expect it'll go to auction and be resolved in a few weeks. Yes, I'm in that one too. I was a bit surprised. It may be that they know the borrower doesn't want their bling back.
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peteuk
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Post by peteuk on May 4, 2017 10:34:34 GMT
Beware! I first started using FS two years ago when it was mainly pawn type items watches,cars ect, these were ok if they did not redeem they would go to auction quickly and i suffered no losses since moving into property loans if something goes wrong FS do not know how to handle defaults properly. Case in point scottish boatyard loan 650 days late and only now applying for possession so maybe another six months before anyone gets any money back if there is any after costs. Rishton loan pretty much the same look at the updates pages for these loans and you will see a sorry tale of woo its easy to lend money the hard part is getting it back
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n
Member of DD Central
Yet another Nick
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Post by n on May 4, 2017 10:45:08 GMT
Beware! I first started using FS two years ago when it was mainly pawn type items watches,cars ect, these were ok if they did not redeem they would go to auction quickly and i suffered no losses since moving into property loans if something goes wrong FS do not know how to handle defaults properly. Case in point scottish boatyard loan 650 days late and only now applying for possession so maybe another six months before anyone gets any money back if there is any after costs. Rishton loan pretty much the same look at the updates pages for these loans and you will see a sorry tale of woo its easy to lend money the hard part is getting it back That's why I only go over £25 if it's bling. I'm really glad I only put £25 in the boatyard.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 9, 2017 13:37:37 GMT
This what FS said about the boatyard 15 months ago. Read from bottom up. We are still waiting.
12/02/2016
We have received a commitment from the borrower, who remains in contact, that accrued interest to date will be paid by the end of next week at the very latest. If not done, we will start default proceedings.
05/02/2016
We remain in daily contact with the borrower who has advised they have funds ready and should have payment with us very shortly. We are pressing for payment amount to include interest up to the actual date of repayment.
30/01/2016
The borrower has been in contact and has advised us that he has the funds ready. We expect payment at the beginning of next week.
22/01/2016
We continue to chase the customer for payment of interest to renew the loan. We are expecting payment shortly.
15/01/2016
Borrower has been in contact and intends to renew the loan. We await funds to be received.
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mikes1531
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Post by mikes1531 on May 9, 2017 19:21:49 GMT
This what FS said about the boatyard 15 months ago. Read from bottom up. We are still waiting. 12/02/2016 We have received a commitment from the borrower, who remains in contact, that accrued interest to date will be paid by the end of next week at the very latest. If not done, we will start default proceedings. The above is rather incomplete, as there are a lot more later updates, including... Receiverships don't generally come to swift conclusions, and this one is ongoing. The process of obtaining possession from a non-cooperative borrower isn't easy in the best of conditions, and this property being in Scotland seems to have made matters worse. Even once possession is obtained, selling a unique property with a limited pool of buyers isn't an easy process and will take some time, as receivers generally have to be fair to the borrower (I'm presuming Scottish law is similar to English law -- I'm certainly no expect on the subject). Expecting a quick resolution is, IMHO, being rather overoptimistic. AC just won a court case regarding a borrower who defaulted back in 2015, and are hopeful that they will be able to obtain possession of the security by June, but the borrower still could obstruct the process. And once they have possession it still will take months to sell the property. Lendy have just repaid a loan that's nine months overdue, and it isn't clear to me whether the security actually has been sold or whether they decided to pay off their investors themselves -- to keep their investors happier, and so that further interest accruing will come to them. Defaults are a hazard of lending, and investors have to expect there will be cases such as these.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 9, 2017 20:38:56 GMT
This what FS said about the boatyard 15 months ago. Read from bottom up. We are still waiting. 12/02/2016 We have received a commitment from the borrower, who remains in contact, that accrued interest to date will be paid by the end of next week at the very latest. If not done, we will start default proceedings. The above is rather incomplete, as there are a lot more later updates, including... Receiverships don't generally come to swift conclusions, and this one is ongoing. The process of obtaining possession from a non-cooperative borrower isn't easy in the best of conditions, and this property being in Scotland seems to have made matters worse. Even once possession is obtained, selling a unique property with a limited pool of buyers isn't an easy process and will take some time, as receivers generally have to be fair to the borrower (I'm presuming Scottish law is similar to English law -- I'm certainly no expect on the subject). Expecting a quick resolution is, IMHO, being rather overoptimistic. AC just won a court case regarding a borrower who defaulted back in 2015, and are hopeful that they will be able to obtain possession of the security by June, but the borrower still could obstruct the process. And once they have possession it still will take months to sell the property. Lendy have just repaid a loan that's nine months overdue, and it isn't clear to me whether the security actually has been sold or whether they decided to pay off their investors themselves -- to keep their investors happier, and so that further interest accruing will come to them. Defaults are a hazard of lending, and investors have to expect there will be cases such as these. I don't disagree with that. My complaint is about the delay from Jan to Dec before they finally put the loan into Receivership.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 9, 2017 20:51:21 GMT
I knew what you meant and totally agree with your point littleoldlady.
If a Platform says it's going to Default, they should just get on with it and do it. The way this Loan has strung out is completely unacceptable.
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peteuk
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Post by peteuk on May 10, 2017 10:18:07 GMT
On this subject when people lend money to secured loans . If your not a sophisticated invester which i am not , you believe that there is enough equity even in a fire sale at least to recoup a sizable amount back. This is not allways the case and it is something the PtoP market has got to get to grips with, over on funding circe generally they want a directors guarantee, some say not worth the paper its written on, but over time i have noticed apart from some who go bancrupt they are managing to get bak near 30% on unsecured. So i sugest to FS if they are reading this personal guarantees should be expected of the borrower at all times. Then we may get less of the rishton and scottish boatyard type loans
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ashtondav
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Post by ashtondav on May 10, 2017 11:36:10 GMT
These people come to FS because banks wouldn't dream of providing speculative short term loans at 70% LTV, for precisely the reasons we see here. It takes a lot of time and money to get these people to pay. You wouldn't pay 13% (35% APR) if you were a reputable property developer. You would be looking at a maximum loan to value of 50% and be borrowing at 6%.
i would expect post bad debt returns from FS to be not better than 8% to 10% in the long term. And I would recommend a maximum of 1% in any one loan, therefore a minimum of 100 loans to get maximum diversification. I wont lend on property over 60% LTV, and never unless PP has been obtained.
a simple pawn business would be far better for us lenders.
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Liz
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Post by Liz on May 10, 2017 11:54:08 GMT
These people come to FS because banks wouldn't dream of providing speculative short term loans at 70% LTV, for precisely the reasons we see here. It takes a lot of time and money to get these people to pay. You wouldn't pay 13% (35% APR) if you were a reputable property developer. You would be looking at a maximum loan to value of 50% and be borrowing at 6%. i would expect post bad debt returns from FS to be not better than 8% to 10% in the long term. And I would recommend a maximum of 1% in any one loan, therefore a minimum of 100 loans to get maximum diversification. I wont lend on property over 60% LTV, and never unless PP has been obtained. a simple pawn business would be far better for us lenders. Finding 100 quality loans is near immpossible on FS, then they fill before you can put a bid in. I would be pushed to find 50 across 5 or 6 platforms that I could get exposure to. I try and protect myself by not holding to term in a lot of cases and sticking to quality and low LTV.
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ashtondav
Member of DD Central
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Post by ashtondav on May 10, 2017 14:56:17 GMT
These people come to FS because banks wouldn't dream of providing speculative short term loans at 70% LTV, for precisely the reasons we see here. It takes a lot of time and money to get these people to pay. You wouldn't pay 13% (35% APR) if you were a reputable property developer. You would be looking at a maximum loan to value of 50% and be borrowing at 6%. i would expect post bad debt returns from FS to be not better than 8% to 10% in the long term. And I would recommend a maximum of 1% in any one loan, therefore a minimum of 100 loans to get maximum diversification. I wont lend on property over 60% LTV, and never unless PP has been obtained. a simple pawn business would be far better for us lenders. Finding 100 quality loans is near immpossible on FS, then they fill before you can put a bid in. I would be pushed to find 50 across 5 or 6 platforms that I could get exposure to. I try and protect myself by not holding to term in a lot of cases and sticking to quality and low LTV. Quite, after nine months I am only up to 70 loans but I will not compromise. At the moment I struggle to find 1 a week I am interested in. I will give the site until December to get fully invested. Then I will sell or withdraw. I don't need 12% and am quite happy with the safer 7.2% I get from Zopa+ (founder member so no fees.)
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Post by dan1 on Jun 10, 2017 21:26:12 GMT
I've had my first 'unredeemed' loan. It's a very small loan of £400 (6607253604) so a maximum of 16 investors. Anyway, it's gone straight to 'unredeemed' without any updates, I would have expected an update along the lines of a default notice has been sent giving the borrower 14 days etc. Is this unusual? Perhaps they can't locate the borrower and serve the default notice. I expect defaults so I'm not concerned. I expect it'll go to auction and be resolved in a few weeks. Yes, I'm in that one too. I was a bit surprised. It may be that they know the borrower doesn't want their bling back. FYI I just sent FS an email requesting an update (no update since 5th May). The following has just been posted: Diamond ring has been left at the auction house to sell.
It will be entered into one of their weekly auctions before the middle of June.Thanks fundingsecure. Great service late on a Saturday night.
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