acky
Posts: 481 
Likes: 262
|
Post by acky on Jul 21, 2017 12:24:18 GMT
I would like to see a more aggressive approach from FC regarding defaults. This is one of the strengths of AC where trading is suspended on a defaulted loan while proposals to repay are sought from the borrower. These proposals are then put to a lender vote & action can then begin to recover the loan. But surely the highly experienced property team can make better decisions on when to enforce the debt that us lenders who are daft enough to hold the loan to term!
|
|
m2btj
Member of DD Central
Posts: 631
Likes: 772
|
Post by m2btj on Jul 21, 2017 13:22:19 GMT
Your description "highly experienced property team" is somewhat flattering. Some of the investor reports have red flags all over them. Once a property loan defaults I would expect FC to seek immediate repayment proposals from the borrower. As a lender I would like to know what the borrower has proposed instead of months of vacuous promises.
|
|
wilhelm
New Member
Posts: 5
Likes: 8
|
Post by wilhelm on Jul 21, 2017 14:07:20 GMT
"Highly experienced property team" is a bit of an in-joke - in their own words, something that FC boasted of having themselves, when they had their own online forum. Needless to say, at the time and afterwards, numerous disheartened and frustrated FC lenders threw the words back in FC's face at frequent opportunities - of which there were many!
To this day FC must still bite their fists when thinking of their stupidity at using such a phrase about themselves.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Jul 21, 2017 15:33:09 GMT
So you don't think they have let the Highly Experienced Property Team go yet? Maybe they have kept the best ones until it is all tidied away.
|
|
kt
Posts: 105 
Likes: 39
|
Post by kt on Jul 21, 2017 16:09:05 GMT
I believe they are using the word 'team' in its loosest possible sense. That is to say, there were/are two of them.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Jul 21, 2017 18:39:30 GMT
I believe they are using the word 'team' in its loosest possible sense. That is to say, there were/are two of them. Including the dog.
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jul 22, 2017 15:00:07 GMT
This is getting very silly
we have
10 Feb 2017
We have been advised by the borrower that refinance with the external lender will complete by the end of the month. We will continue to liaise with the borrower and update investors if this timescale changes.
End of the month was nearly 5 months ago. That is 5 months interest at premium to recover plus all the legal fees plus lender fees... We can all liaise but that does not solve the problem. Who on earth at FC is "dealing" with this - the large purple puppet? It strikes me that there is a major problem here (as I predicted) and FC could possibly be a tincy-wincy more forthcoming about the true situation.
I really can't see anything but a default here - mind you it won't be the last one in my humble opinion
|
|
damar
Member of DD Central
Posts: 110
Likes: 47
|
Post by damar on Jul 23, 2017 7:50:30 GMT
This apparently is the reason for not defaulting.
Thank you for your email regarding the Tewkesbury property loans, I understand your frustration caused by this and I hope to alleviate some of the concerns regarding this.
We will default a property loan if we are uncertain that the properties will complete, or if we believe the borrower is not in a position to pay the remaining amount of the loan. Whilst we appreciate there have been significant delays with funds being repaid for the Tewkesbury loans in particular, our Property team are in regular contact with the borrower, and they have good visibility on the progress of the developments. The sites are regularly visited, and with the current late property loans it is a case of when, and not if, the loans will be repaid.
If we were to default a property loan, then we would look to exercise first charge rights. However, as the borrower is currently in advanced stages of re-financing these loans, defaulting these property loans is likely to be counter-productive at this stage. Exercising first-charge is likely to take a number of months, and as a result, it could take a significantly extended period of time until any money is received.
Therefore, investors are more likely to have their funds repaid quicker if we work with the borrower to ensure that their loan is settled as soon as possible.
I appreciate the ongoing delays may instill some concerns given that investors are only updated via the loan comments whenever we have any further information to provide. Having said this I would like to assure you that the property team are in regular contact with the borrower and are working as hard as possible to ensure that the external re-finance is completed as soon as possible.
I hope this provides a sufficient level of clarification to your query. If you have any further questions then please do not hesitate to get back in contact.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jul 23, 2017 9:57:14 GMT
What a climb down. The words "highly experienced" have been inexplicably dropped.
Now it is a plain and simple downgraded "the team are", though I am in a declining number of literate people who would say "the team is". (If there were two or more teams, it would be "the teams are").
(Even the BBC can't be told to talk proper these days!)
<end of irrelevant moan>
|
|
|
|
Post by chielamangus on Jul 23, 2017 10:17:31 GMT
The most annoying grammatical error in the above was the lack of an adverb "Therefore, investors are more likely to have their funds repaid quicker ..." Virtually everyone at the Beeb is ignorant of the distinction between adjectives and adverbs. So... (the must-have start to every sentence, these days) ... the lesson I have learned is that education is rather a waste of time. One can earn fortunes without it, and with it, one just gets frustrated at the lack of education of everybody else - well, everyone on the BBC at least.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Jul 23, 2017 15:59:48 GMT
Quite so. We should all refuse to accept the funds unless the team agrees to pay them more quickly. If they do use an adverb, then we must insist that the team should not try to quickly pay the funds. The money would become tainted if an infinitive were to be split, simply for the sake of making a quicker payment. That is something, up with which, I will not put.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jul 23, 2017 17:12:07 GMT
It's only a short move to incorporating into written updates the inarticulate spoken beginning of sentences (in answer to a question) with, " Yeah I mean ..." or "No I mean ..." (no comma, because they don't even space the words when they "speak"). That has caught up with the long lasting annoyance of repeated punctuating of "sentences" with the two words, "you know". "No I bloody don't know. You are supposed to be telling me! Cretin!"   Aaaaaaaaaaaaahhhh! That's better. |
|
mikeb
Posts: 1,072
Likes: 472
|
Post by mikeb on Jul 23, 2017 19:13:56 GMT
I believe they are using the word 'team' in its loosest possible sense. That is to say, there were/are two of them. Including the dog. And, as the old joke goes ... ... the man is there to feed the dog, and the dog is there to bite the man if he dares post a meaningful loan update.
|
|
c88dnf
Member of DD Central
Posts: 364
Likes: 266
|
Post by c88dnf on Jul 25, 2017 13:16:29 GMT
This apparently is the reason for not defaulting. Thank you for your email regarding the Tewkesbury property loans, I understand your frustration caused by this and I hope to alleviate some of the concerns regarding this.
We will default a property loan if we are uncertain that the properties will complete, or if we believe the borrower is not in a position to pay the remaining amount of the loan. Whilst we appreciate there have been significant delays with funds being repaid for the Tewkesbury loans in particular, our Property team are in regular contact with the borrower, and they have good visibility on the progress of the developments. The sites are regularly visited, and with the current late property loans it is a case of when, and not if, the loans will be repaid.
(snipped) FC now standing for Fatuous Confidence or Fatalistically Coping perhaps?
|
|
easylender
Member of DD Central
Posts: 249
Likes: 225
|
Post by easylender on Jul 25, 2017 20:27:29 GMT
I was invested in Borehamwood, a 6 month loan that ended up being 258 days late before being refinanced. With all that penalty interest it's been my most profitable FC property loan with an annualised return of 10.6% after fees. So, from my perspective the FC team extracted the maximum return from the loan. Of course I'm hoping that Tewkesbury goes the same way. But if it does default it's not a big deal because I'm adequately diversified with no more than 1% of my total P2P investment with any one borrower. So why are people on here slagging off FC because a loan is late? My theory is that P2P appeals to people who like to be in control of their savings and are not so happy to hand control over to a fund manager. When a loan becomes late that control is lost and it triggers emotions - frustration, powerlessness, anger, etc. - even though the possibility of being late or even defaulting was part of the deal. Slagging off FC gives vent to those feelings and so helps people to feel better - for a while - but unfortunately doesn't address the underlying cause of those feelings.
|
|
Aaaaaaaaaaaaahhhh! That's better.