misscas
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Post by misscas on Jul 18, 2014 14:35:04 GMT
Has Alderspore given them an extension? I asked about this and David replied: "We have been told that things are progressing with Aldermore and that borrower has demonstrated sufficient progress to be granted a short extension to complete the transaction."
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oldgrumpy
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Post by oldgrumpy on Jul 18, 2014 14:37:52 GMT
Has Alderspore given them an extension? I asked about this and David replied: "We have been told that things are progressing with Aldermore and that borrower has demonstrated sufficient progress to be granted a short extension to complete the transaction." Ta! 
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mark
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Post by mark on Jul 30, 2014 16:34:42 GMT
So its now the 30/07/14 and no real update from AC
According to a response to a question, AC have been trying to contact the borrowers and have been unable to gain any feedback following a meeting with Aldermore on Mon 28th July.
Am I the only one who finds this slightly worrying and and a concern that they are unable to obtain any information from the borrower following their meeting with Aldemore regarding refinancing bearing in mind this borrower is in default of their original loan and the extention. If refinancing was obtained I would have thought the borrower would have been straight on the phone to reassure AC and more importantly the lenders.
AC proposed to allow a further week to Monday 28 July for refinance to be completed and if not completed then in all likelihood they would demand repayment and seek to recover lenders funds via that route. With the deadline passed and the lack of response from the lender, a more robust update than " we have tried to contact them three times today " maybe required.
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mikes1531
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Post by mikes1531 on Jul 30, 2014 17:57:44 GMT
So its now the 30/07/14 and no real update from AC According to a response to a question, AC have been trying to contact the borrowers and have been unable to gain any feedback following a meeting with Aldermore on Mon 28th July. Am I the only one who finds this slightly worrying and and a concern that they are unable to obtain any information from the borrower following their meeting with Aldemore regarding refinancing bearing in mind this borrower is in default of their original loan and the extention. If refinancing was obtained I would have thought the borrower would have been straight on the phone to reassure AC and more importantly the lenders. AC proposed to allow a further week to Monday 28 July for refinance to be completed and if not completed then in all likelihood they would demand repayment and seek to recover lenders funds via that route. With the deadline passed and the lack of response from the lender, a more robust update than " we have tried to contact them three times today " maybe required. I see these questions have been asked on the loan's Q&A page as well. Hopefully we'll get an answer quickly. (Is andrewholgate still on holiday? If so, until when?) When davidricketts1 wrote to lenders on 18/Jul to say AC was going to allow the borrower another week, my reply to him included... I haven't a clue whether AC actually did anything like that. Maybe we'll find out when we do get an update.
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Post by davidricketts1 on Jul 30, 2014 19:47:54 GMT
So its now the 30/07/14 and no real update from AC According to a response to a question, AC have been trying to contact the borrowers and have been unable to gain any feedback following a meeting with Aldermore on Mon 28th July. Am I the only one who finds this slightly worrying and and a concern that they are unable to obtain any information from the borrower following their meeting with Aldemore regarding refinancing bearing in mind this borrower is in default of their original loan and the extention. If refinancing was obtained I would have thought the borrower would have been straight on the phone to reassure AC and more importantly the lenders. AC proposed to allow a further week to Monday 28 July for refinance to be completed and if not completed then in all likelihood they would demand repayment and seek to recover lenders funds via that route. With the deadline passed and the lack of response from the lender, a more robust update than " we have tried to contact them three times today " maybe required.
Apologies for the delay Mark - been a busy week but I won't bore you with my problems...
Formal update is on the loan page now.
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Post by mead187 on Jul 30, 2014 20:20:28 GMT
Not worried about this loan yet I trust AC are handling it, appreciate the update though. With this rate of interest it can be delayed a few more weeks  |
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mikes1531
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Post by mikes1531 on Jul 30, 2014 20:22:43 GMT
Formal update is on the loan page now. And it's not good news for anyone who was hoping to use the proceeds from this loan to finance something else. I do hope it's not a case of 'jam tomorrow' -- or 18% p.a. for the month, as the case may be. davidricketts1: Would it be appropriate/feasible to ask the borrower to pay the interest for the next month in advance, as they did last month? And for AC to make whatever changes are required in their systems to allow that interest to be credited to lenders' accounts sooner rather than later?
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mark
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Post by mark on Oct 6, 2014 9:36:21 GMT
So nearly four months after the borrower should have repaid this £875000.00 loan we find out that all the promises of refinancing with Aldermore were apparently worthless. I hope AC does not waste anymore time in moving the deadlines for this borrower once again and delaying repayment to lenders.
We were informed that AC had no reason to believe that the repayment of the loan extension would not happen on Friday 3rd Oct yet it did not which is also of a concern to me as a lender with AC.
I hope that the appointment of a LPA receiver takes place immediately to recover lenders funds and that AC update us today rather than wait until tomorrow night, as its my experience that updates do not always happen when stated or sometimes not at all.
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Post by Ton ⓉⓞⓃ on Oct 6, 2014 10:02:17 GMT
So nearly four months after the borrower should have repaid this £875000.00 loan we find out that all the promises of refinancing with Aldermore were apparently worthless. I hope AC does not waste anymore time in moving the deadlines for this borrower once again and delaying repayment to lenders. We were informed that AC had no reason to believe that the repayment of the loan extension would not happen on Friday 3rd Oct yet it did not which is also of a concern to me as a lender with AC. I hope that the appointment of a LPA receiver takes place immediately to recover lenders funds and that AC update us today rather than wait until tomorrow night, as its my experience that updates do not always happen when stated or sometimes not at all. What you're saying is true, but I'm still hoping it's just a paperwork delay and that the Demand letter acts to concentrate the Borrower's mind on finalizing rather than looking for a better deal. Am I just too optimistic?
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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 Oct 7, 2014 16:48:53 GMT
Just received the inevitable email to inform me that THE LETTER has been chucked in a draw and the piece of string has been lengthened to the end of the month  |
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oldgrumpy
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Post by oldgrumpy on Oct 7, 2014 16:51:25 GMT
Latest update is as expected...one word will suffice... in the "rude words" list: Unfortunately ....  (cross posted with il moro) |
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mikes1531
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Post by mikes1531 on Oct 7, 2014 20:01:25 GMT
Just received the inevitable email to inform me that THE LETTER has been chucked in a draw and the peice of string has been lengthened to the end of the month Would the issuance of a demand letter and/or appointment of a LPA receiver automatically scupper the refinancing effort? If not, then I can't see the point of delaying those steps. Firstly, it might produce some genuine progress on the refinance. Secondly, it ought to accelerate the sale of the security by the receiver if the refinancing doesn't happen. Delaying the appointment of a receiver until the end of October seems likely to add another month to the time required to turn the security into proceeds to repay the lenders who have waited three and a half months after the original loan's maturity already. I am surprised that AC haven't asked the borrower to pay the default interest accrued to this point in recognition of AC's cooperation and forbearance in not sending a demand letter. Letting the default interest continue to accrue will make it that much harder to achieve a full recovery if it becomes necessary for a receiver to sell the property. Aldermore's refinancing offer must have been very attractive relative to the option of asking AC to extend the loan, as I expect it would have been possible to do that at about 12% if it had been arranged before the original 20/Jun maturity. But perhaps that's visible only with hindsight. What I think I'm learning from this loan -- and other AC bridging loans -- is that 6-month bridging loans are, for practical purposes, a figment of someone's imagination, and are unlikely to be paid off at maturity unless the borrower starts working on the refinancing practically before they obtain the bridging loan. And that's probably not possible -- in this case, for instance, the refinancing probably depended on the completion of the refurbishment work. So I need to think of 6-month bridging loans as likely to go on for closer to a year. And since the interest after the first six months isn't likely to be paid until the loan is settled... a) I can't rely on that monthly income; and b) I need to avoid high LTVs so that the borrower will have sufficient equity remaining to allow all costs, including accrued default interest, to be paid out of recovery proceeds if it came to that.
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bugs4me
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Post by bugs4me on Oct 7, 2014 21:18:50 GMT
Just received the inevitable email to inform me that THE LETTER has been chucked in a draw and the peice of string has been lengthened to the end of the month Would the issuance of a demand letter and/or appointment of a LPA receiver automatically scupper the refinancing effort? If not, then I can't see the point of delaying those steps. Firstly, it might produce some genuine progress on the refinance. Secondly, it ought to accelerate the sale of the security by the receiver if the refinancing doesn't happen. Delaying the appointment of a receiver until the end of October seems likely to add another month to the time required to turn the security into proceeds to repay the lenders who have waited three and a half months after the original loan's maturity already. I am surprised that AC haven't asked the borrower to pay the default interest accrued to this point in recognition of AC's cooperation and forbearance in not sending a demand letter. Letting the default interest continue to accrue will make it that much harder to achieve a full recovery if it becomes necessary for a receiver to sell the property. Aldermore's refinancing offer must have been very attractive relative to the option of asking AC to extend the loan, as I expect it would have been possible to do that at about 12% if it had been arranged before the original 20/Jun maturity. But perhaps that's visible only with hindsight. What I think I'm learning from this loan -- and other AC bridging loans -- is that 6-month bridging loans are, for practical purposes, a figment of someone's imagination, and are unlikely to be paid off at maturity unless the borrower starts working on the refinancing practically before they obtain the bridging loan. And that's probably not possible -- in this case, for instance, the refinancing probably depended on the completion of the refurbishment work. So I need to think of 6-month bridging loans as likely to go on for closer to a year. And since the interest after the first six months isn't likely to be paid until the loan is settled... a) I can't rely on that monthly income; and b) I need to avoid high LTVs so that the borrower will have sufficient equity remaining to allow all costs, including accrued default interest, to be paid out of recovery proceeds if it came to that. Singing off the same song sheet as yourself mikes1531 regarding 6 month bridging loans. I've thought for a while now that in reality we're looking at a year. I've sold more than a couple of the short term bridging loans on the AM as whilst it's nice to see the 18% - that 18% does of course need to translate into reality. I'm fairly comfortable about still being in this one as the LTV does look okay but will take each one as it comes in future. Regarding paying the default interest to date. There's always the possibility that the borrower simply hasn't got the funds to do so. Like many I watch many a TV programme where the owner vastly underestimates the cost of refurbishment/renovation and not just by a few thousand here and there. Often banks/BS simply will not lend on work in progress. Maybe AC need to take more of a holding hand in this but then again they are supposedly dealing with people that should know what they are doing.
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Post by mrclondon on Oct 7, 2014 21:40:55 GMT
I'd feel happier if I'd managed to identify the property during my original due dilligence. The anonymous nature of this loan (amongst others of its genre) makes it impossible to quantify the risk in continuing to hold. Perhaps for future anonymous loans, the contract should contain a clause that 2 weeks after the loan defaults, lenders will be provided with the borrower's identity, and sufficeint information to unambigously identify the security. andrewholgate - is there any reason why such an approach wouldn't work ?
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jjc
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Post by jjc on Oct 7, 2014 22:08:41 GMT
Fully agree with mrc. Furthermore, the absence of a VR for lenders makes risk assessment in practice impossible. Would it not be possible to upload a copy with the borrower's identity blacked out at this juncture? There is 70k of this loan sitting on the AM, lenders who'd like to exit cannot because lenders who might like to take a small piece or increase their exposure have no way of evaluating the risks involved. This serves the interests of nobody, AC, lenders (new or old), risk-averse or yield-hungry. Pure curiosity, does the agreement for anonymity (which presumably would not be compromised with a duly doctored copy of the VR) hold irrespective of any & all possible breaches of loan conditions by the borrower?
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