cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
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Post by cedarcourtcapital on Apr 28, 2020 11:41:15 GMT
An argument could be constructed that would suggest whilst the big picture has not changed, the borrower will rarely have a better chance to get a low cost loan to at least pay off some of the interest owed. Maybe he does not consider this important? In which case a bit of mind focusing may be beneficial. I’d agree unfortunately the idea of paying interest was pushed aside when focus has been purely on capital repayment Is that really true? Of course MT are 'managing' this default. but would anyone be considering or advocating action if interest payments were still being made? The issue is that a lot of borrowers, who cannot repay their loans when they become due, now take the option of stopping interest payments. I contend that this has become more prevalent because of MT's ineffectual handling of the situation, of allowing borrowers to stop paying interest, yet not be foreclosed upon. This gets around and others think, why do I need to continue to service my debt, I can just stop paying interest and roll it up. If I can re-finance I have lost nothing, if I can't and get foreclosed upon, what have I lost? In this case, on the assumption that the lender has an awful lot of 'skin in the game', you would have thought that MT could have got tough with them, but alas no.
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averageguy
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Post by averageguy on Apr 28, 2020 12:52:47 GMT
I’d agree unfortunately the idea of paying interest was pushed aside when focus has been purely on capital repayment Is that really true? Of course MT are 'managing' this default. but would anyone be considering or advocating action if interest payments were still being made? The issue is that a lot of borrowers, who cannot repay their loans when they become due, now take the option of stopping interest payments. I contend that this has become more prevalent because of MT's ineffectual handling of the situation, of allowing borrowers to stop paying interest, yet not be foreclosed upon. This gets around and others think, why do I need to continue to service my debt, I can just stop paying interest and roll it up. If I can re-finance I have lots nothing, if I can't and get foreclosed upon, what have I lost? In this case, on the assumption that the lender has an awful lot of 'skin in the game', you would have thought that MT could have got tough with them, but alas no. It’s an opinion based on my experience with MT
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Post by rollercoaster on Apr 28, 2020 13:14:22 GMT
Look at the remaining loans. How many are actually still getting interest paid? And in the current situation how are any of those going to be able to pay interest?
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cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
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Post by cedarcourtcapital on Apr 28, 2020 18:55:36 GMT
Look at the remaining loans. How many are actually still getting interest paid? And in the current situation how are any of those going to be able to pay interest? Are you suggesting the current loans not paying interest have stopped doing so because of the world's Covid-19 crisis? If you are, I would point out that all the loans which have stopped paying did so well before the crisis. To my knowledge none have ceased in the last few weeks, they all stopped much longer ago. Yes the crisis could well be a reason why loans cannot now be re-financed, but not as an excuse for borrowers stopping servicing their debt.
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johni
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Post by johni on Apr 28, 2020 19:39:31 GMT
Look at the remaining loans. How many are actually still getting interest paid? And in the current situation how are any of those going to be able to pay interest? Are you suggesting the current loans not paying interest have stopped doing so because of the world's Covid-19 crisis? If you are, I would point out that all the loans which have stopped paying did so well before the crisis. To my knowledge none have ceased in the last few weeks, they all stopped much longer ago. Yes the crisis could well be a reason why loans cannot now be re-financed, but not as an excuse for borrowers stopping servicing their debt. 2 have paid 50% instead of full amount in last couple of weeks.
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cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
Posts: 190
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Post by cedarcourtcapital on Apr 28, 2020 20:00:42 GMT
2 have paid 50% instead of full amount in last couple of weeks. Remind me, were those interest payments up to date when the Covid-19 crisis happened? I think not! The part payment of interest you refer to were partial payment of arrears built up before the crisis.
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Post by Badly Drawn Stickman on Apr 28, 2020 20:07:19 GMT
2 have paid 50% instead of full amount in last couple of weeks. Remind me, were those interest payments up to date when the Covid-19 crisis happened? I think not! The part payment of interest you refer to were partial payment of arrears built up before the crisis. No, they were up to date. The hotel/pizza property (think round with hands and numbers) is understandable. The scaly animal loan a bit more borderline, but was fully up to date.
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ilmoro
Member of DD Central
'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 Apr 28, 2020 20:15:25 GMT
2 have paid 50% instead of full amount in last couple of weeks. Remind me, were those interest payments up to date when the Covid-19 crisis happened? I think not! The part payment of interest you refer to were partial payment of arrears built up before the crisis. Actually I believe both were up to date. Both are business impacted by CV19 and have gone to half payments only since lockdown. Scouse Bar & scaly mammal FYI Edit crossed with VI
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Post by rollercoaster on Apr 28, 2020 21:29:17 GMT
I meant how many weren't paying interest before coronavirus. Then how many of those will be in a position to pay now during coronavirus. Very hard to refinance, very hard to complete projects and start revenue streams.
So what should moneything do? Call in the debt in full? Bankrupt borrowers? Force sell assets?
They, and us lenders are stuck between a rock and hard place.
They might decide to wrap up moneything and crystallize losses.
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cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
Posts: 190
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Post by cedarcourtcapital on Apr 28, 2020 22:44:37 GMT
Apologies if I have mis-stated facts about the state of the two loans which were paying interest and could only afford to pay 50% because of the effect of Coronavirus.
If these were up to date what have they got to do with MT's handling of defaults, and this loan in particular? Who introduced them and what is their relevance to MT's handling of this 'default' loan?
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up
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Post by up on May 18, 2020 11:06:59 GMT
Trading statement on the listing exchange with news of plan for earlier limited self-catering opening.
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Post by angel19 on May 18, 2020 20:52:20 GMT
There is so much Walter Mitty about this I actually hope it all comes good. After all, the exchange is FCA regulated, so I don’t think you can just publish the hogwash you feed the P2P platform without the risk of having your collar felt. But I do wonder who in their right mind would invest in a Bond offered by a company with zero assets, a whopping £2.6m loan on the land, no interest paid for over a year etc. Would be great to be a fly on the wall at those investor meetings. Oh well, I just hope MT have a watertight agreement that the first £3m or so comes to MT lenders in capital and interest.
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ptr120
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Post by ptr120 on May 28, 2020 15:39:42 GMT
The last update promised a review in a months time. That was on 27/4. The date today? 28/5. Any update? Nope. MoneyThing continue to treat us like mushrooms.
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averageguy
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Post by averageguy on May 29, 2020 17:42:51 GMT
Hmm said they would review in a months time not necessarily report on that the exact date ...something by close of play Tuesday wouldn’t be unrealistic imho
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averageguy
Member of DD Central
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Post by averageguy on Jun 2, 2020 20:29:10 GMT
Hmm said they would review in a months time not necessarily report on that the exact date ...something by close of play Tuesday wouldn’t be unrealistic imho Emailed MT asking about an update
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