r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Jan 16, 2018 8:48:36 GMT
I suspect the only winners from chasing PG's are the lawyers. <snip> Anyhow- Even though I have many complaints, I would like to thank MT for making (hopefully) this default as quick as possible and not let it linger. Hear hear, and thanks MT for not doing a Lendy PBL081 and calling a loss a loss, and not "a substantial partial capital repayment with the relevant claims to recover the remaining capital and interest in progress". Although sadly, it seems to be paying off as MT seem to be taking more of a beating here than Lendy are, just because they're not pretending the fairies at the end of the garden are going to generate the shortfall. Edit: Should Lendy ultimately recover their 55% £2,100,000 shortfall on PBL081 from a named source, I shall eat humble pie!
|
|
TitoPuente
Member of DD Central
Posts: 624
Likes: 655
|
Post by TitoPuente on Jan 16, 2018 9:58:09 GMT
<snip> Anyhow- Even though I have many complaints, I would like to thank MT for making (hopefully) this default as quick as possible and not let it linger. Hear hear, and thanks MT for not doing a Lendy PBL081 and calling a loss a loss, and not "a substantial partial capital repayment with the relevant claims to recover the remaining capital and interest in progress". Although sadly, it seems to be paying off as MT seem to be taking more of a beating here than Lendy are, just because they're not pretending the fairies at the end of the garden are going to generate the shortfall. Edit: Should Lendy ultimately recover their 55% £2,100,000 shortfall on PBL081 from a named source, I shall eat humble pie! I believe there is enough well deserved beating in the Lendy forum. In this case MT screwed badly by instructing a useless valuation and/or not picking the right number. Recovery of less than 50% of stated valuation cannot be attributed to circumstantial or market variations, it is negligence.
|
|
r1200gs
Member of DD Central
Posts: 1,336
Likes: 1,883
|
Post by r1200gs on Jan 16, 2018 10:30:57 GMT
I suspect the only winners from chasing PG's are the lawyers. In the longer term though it may help "keep people honest" if they know they will be bankrupted via the PG if the loan fails rather than the PG just being ignored as not cost effective for that loan in isolation. I'm not sure bankruptcy worries some of these people. Bankrupts with castles and fleets of luxury cars are not unheard of.
|
|
stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,446
Likes: 945
|
Post by stub8535 on Jan 16, 2018 10:45:06 GMT
In the longer term though it may help "keep people honest" if they know they will be bankrupted via the PG if the loan fails rather than the PG just being ignored as not cost effective for that loan in isolation. I'm not sure bankruptcy worries some of these people. Bankrupts with castles and fleets of luxury cars are not unheard of. Along with shedley manor from the tv prog last week. Told courts he was living in a shed. A large purpose built 6 bedroom shed, but a shed nonetheless. Poor thing!
|
|
11025
Member of DD Central
Posts: 731
Likes: 849
|
Post by 11025 on Jan 16, 2018 11:55:37 GMT
TBH , I have always been very sceptical of the obligatory 70% that is pushed for continually , rose tinted valuations and a fire sale do not mix , I think the P2P companies need to get real and LTVs need to start heading nearer the 50% mark.
To quote a post from Moneything a few months ago :
This loan was provided at 70% loan to value ratio and we are confident that a full capital and interest recovery is possible, although it is of course not guaranteed.
CAVEAT EMPTOR
|
|
IFISAcava
Member of DD Central
Posts: 3,683
Likes: 3,008
|
Post by IFISAcava on Jan 16, 2018 12:56:38 GMT
In the longer term though it may help "keep people honest" if they know they will be bankrupted via the PG if the loan fails rather than the PG just being ignored as not cost effective for that loan in isolation. I'm not sure bankruptcy worries some of these people . Bankrupts with castles and fleets of luxury cars are not unheard of.I don't think it is the norm though. You won't stop the crooks whatever you do.
|
|
carolus
Member of DD Central
Posts: 204
Likes: 191
|
Post by carolus on Jan 16, 2018 14:02:34 GMT
TBH , I have always been very sceptical of the obligatory 70% that is pushed for continually , rose tinted valuations and a fire sale do not mix , I think the P2P companies need to get real and LTVs need to start heading nearer the 50% mark. It seems to me that simply expecting LTVs to be at 50% doesn't help much. If the problem is that valuations are being gently (or not so gently?) massaged to meet the 70% LTV figure then surely, unless progress is made on getting better valuations, the problem is just being shifted as they will presumably then be massaged to meet the 50% figure.
|
|
11025
Member of DD Central
Posts: 731
Likes: 849
|
Post by 11025 on Jan 16, 2018 14:12:13 GMT
TBH , I have always been very sceptical of the obligatory 70% that is pushed for continually , rose tinted valuations and a fire sale do not mix , I think the P2P companies need to get real and LTVs need to start heading nearer the 50% mark. It seems to me that simply expecting LTVs to be at 50% doesn't help much. If the problem is that valuations are being gently (or not so gently?) massaged to meet the 70% LTV figure then surely, unless progress is made on getting better valuations, the problem is just being shifted as they will presumably then be massaged to meet the 50% figure. Yes , you are correct with that too , 50% of a proper valuation because 70% with a nefarious valuation could be close to 100% LTV which wouldn't attract much interest ( from Lenders ! )
As I have mentioned previously there should be some sort of recourse against the authors of these pie in the sky valuations - I have to say in defence of MT this has been more a Lendy and FS thing
|
|
|
Post by alphareturn on Jan 28, 2018 21:45:06 GMT
The valuer has a 1M GBP insurance policy listed in the valuation document.. I would expect MT to call on this given the massive discrepancy between the final sale price and the valuation. Is there any history of this happening?
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,475
|
Post by bugs4me on Jan 29, 2018 11:25:47 GMT
The valuer has a 1M GBP insurance policy listed in the valuation document.. I would expect MT to call on this given the massive discrepancy between the final sale price and the valuation. Is there any history of this happening? IIRC, there was a court case brought against a RCIS valuation a while back, (not P2P related), which failed. Whilst any valuation may not be an exact science the ability of the valuers at covering their a***s is.
The problem though is not just restricted to what may be considered to be fictitious optimistic valuations. The ability of the platform to operate in a timely fashion in the event of a default is highly questionable. Time and time again the same platforms are being shown to be totally inept. As a P2P lender I fully expect losses from time to time, that is the nature of the business. But due to the continual 'kicking the can down the road' what may have resulted in say a 30% loss rapidly escalates.
Only when a sense of maturity and responsibility is applied by the platforms will things improve. In the meantime I'll automatically discount by 20% those valuations before deciding to invest.
|
|
zendog
Member of DD Central
Posts: 137
Likes: 83
|
Post by zendog on Jan 31, 2018 14:57:09 GMT
I know you shouldnt laugh as this is a default, but I did find the update by MT today just a little amusing - "There is a delay with the sale because the Administrator is awaiting a consent from the freeholder to sell the property. Unfortunately, the freeholder is deceased.......". Lets hope that they can ".....make contact with the Estate of the Freeholder"
|
|
m2btj
Member of DD Central
Posts: 630
Likes: 768
|
Post by m2btj on Jan 31, 2018 15:13:47 GMT
I get the feeling this is going to be a long process!
|
|
|
Post by thecleaner on Jan 31, 2018 15:40:13 GMT
Should that information regarding the deceased freeholder not have been spotted during DD or am i off the mark there.
|
|
dovap
Member of DD Central
Posts: 467
Likes: 410
|
Post by dovap on Jan 31, 2018 16:18:26 GMT
Our ric'ster: 'understood that the tenure is Freehold'
(but then he also understood it to be worth a good deal more)
seems the admins hadn't looked either I guess
ho hum
|
|
jlend
Member of DD Central
Posts: 1,832
Likes: 1,461
|
Post by jlend on Jan 31, 2018 16:51:39 GMT
I thought it was freehold looking at the valuation report.
But looking at companies house , MT had registered a charge over the leashold land.
Feel a bit misled but perhaps I've misunderstood
|
|