bg
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Post by bg on Sept 18, 2019 14:30:43 GMT
The state of FC's finances or share price will be of no concern to borrowers. Once they get the loan its of no relevance.
I had a mortgage from Northern Rock when they went under, a few people asked me if I was worried. Er no, why would I be!
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Sept 18, 2019 19:19:28 GMT
Borrowers will still be there given that you can have as much cash as you want with limited DD and then simply go into liquidation (another default today 38552 my sixth this month). As to the share price then it has no theoretical bottom other than 1p given that FC has no assets to speak of and a business model that will never deliver positive earnings. At some point the cash burn will have burnt through and FC will be seeking fresh finance – good luck with that one. As to lenders then everyone on this forum seems to be getting out. 2 downgraded and 1 default today and a default yesterday, seem to be coming thick and fast at the moment my defaults are now 25% of my income
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tjtl
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Post by tjtl on Sept 18, 2019 19:28:12 GMT
Borrowers will still be there given that you can have as much cash as you want with limited DD and then simply go into liquidation (another default today 38552 my sixth this month). As to the share price then it has no theoretical bottom other than 1p given that FC has no assets to speak of and a business model that will never deliver positive earnings. At some point the cash burn will have burnt through and FC will be seeking fresh finance – good luck with that one. As to lenders then everyone on this forum seems to be getting out. 2 downgraded and 1 default today and a default yesterday, seem to be coming thick and fast at the moment my defaults are now 25% of my income Only 25%? be prepared for much worse, I am now well over 50% on a portfolio of over £120k- s I SHOULD have got decent diversification
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cwah
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Post by cwah on Sept 18, 2019 23:20:59 GMT
2 downgraded and 1 default today and a default yesterday, seem to be coming thick and fast at the moment my defaults are now 25% of my income Only 25%? be prepared for much worse, I am now well over 50% on a portfolio of over £120k- s I SHOULD have got decent diversification You've put £120k on Funding Circles loans?
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tjtl
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Post by tjtl on Sept 19, 2019 7:08:09 GMT
Only 25%? be prepared for much worse, I am now well over 50% on a portfolio of over £120k- s I SHOULD have got decent diversification You've put £120k on Funding Circles loans? As said in earlier posts I had, at top, just over £120k on FC, gave an order to sell half on 6/6/19 (and am cursing not giving an order to sell all), so waiting for the sale to come through any day/week/month/year/lifetime and will then seek to sell the balance. I have been drawing cash every week on the balance and am now down to circa £50k (if the sale goes through). Net earnings (after defaults and fees) are 42% of gross earrings, and reducing every week. Quoted return is 4.7%, but expect to just about get out what I put in (but am reconciled to perhaps being disappointed). Thankfully my other P2P holdings are doing somewhat better (Ratesetter, Assetz, even Wellesley and Relendex- horrid to see just what a mess FC have made of their business in their hubristic push for growth ahead of their IPO).
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Post by Mr Smith on Sept 19, 2019 8:14:25 GMT
The state of FC's finances or share price will be of no concern to borrowers. Once they get the loan its of no relevance. I had a mortgage from Northern Rock when they went under, a few people asked me if I was worried. Er no, why would I be! The liquidators could have called in the debt on a house that you'd have been lucky to sell for 50% of the previous years selling prices. You should have been bricking it !!!
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reinvestor
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Post by reinvestor on Sept 19, 2019 8:46:27 GMT
The state of FC's finances or share price will be of no concern to borrowers. Once they get the loan its of no relevance. I had a mortgage from Northern Rock when they went under, a few people asked me if I was worried. Er no, why would I be! The liquidators could have called in the debt on a house that you'd have been lucky to sell for 50% of the previous years selling prices. You should have been bricking it !!! No they couldn't. As long as he hadn't breached any terms and conditions and made all payments on time, the debt cannot be called in.
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Post by peer2fear on Sept 19, 2019 8:57:42 GMT
Only 25%? be prepared for much worse, I am now well over 50% on a portfolio of over £120k- s I SHOULD have got decent diversification You've put £120k on Funding Circles loans? I've just checked mine and on a portfolio of at most £11k my defaults currently stand at 70.7% of my income. So I would say expect a lot lot worse.
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Post by Mr Smith on Sept 19, 2019 9:01:43 GMT
The liquidators could have called in the debt on a house that you'd have been lucky to sell for 50% of the previous years selling prices. You should have been bricking it !!! No they couldn't. As long as he hadn't breached any terms and conditions and made all payments on time, the debt cannot be called in. Depends on the T&Cs and the bankruptcy laws. Did you check ?
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reinvestor
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Post by reinvestor on Sept 19, 2019 9:05:11 GMT
No they couldn't. As long as he hadn't breached any terms and conditions and made all payments on time, the debt cannot be called in. Depends on the T&Cs and the bankruptcy laws. Did you check ? No it doesn't. As a mortgage holder, if the lender goes into administration, the terms of the mortgage would roll on into the administration.
I run a finance company. If we went bust, the administrators couldn't go round to all of my clients and demand that they repay their car finance immediately or give the car back.
This is all for consumers of course.
In the case of unregulated business lending - yes, the debt can be called in as there is no protection in place for business.
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sl75
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Post by sl75 on Sept 19, 2019 11:19:37 GMT
You've put £120k on Funding Circles loans? I've just checked mine and on a portfolio of at most £11k my defaults currently stand at 70.7% of my income. So I would say expect a lot lot worse. On a "vintage" portfolio, where there's been plenty of time for most recovery processes to work their way through, recoveries currently stand at 52.9% of defaults, and this continues to increase as there are still several loans actively paying an amount every month despite having defaulted years ago, together with the occasional large payment as a long-ago defaulted loan suddenly has a recovery.
... so don't assume that "default" is the end of the matter.
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blender
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Post by blender on Sept 19, 2019 12:35:19 GMT
You can find the position on individual loans only by going through transactions - unless there is a statement in the notes. My experience on recoveries was good before the black box, in that it was about 40% over two accounts, on a very small sample. That does not mean that recoveries will be the same for the later loans, especially as FC considers the bad cohort must not be allowed to become a significant part of new portfolios. They cannot have it both ways.
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bg
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Post by bg on Sept 19, 2019 12:59:19 GMT
Depends on the T&Cs and the bankruptcy laws. Did you check ? No it doesn't. As a mortgage holder, if the lender goes into administration, the terms of the mortgage would roll on into the administration.
I run a finance company. If we went bust, the administrators couldn't go round to all of my clients and demand that they repay their car finance immediately or give the car back.
This is all for consumers of course.
In the case of unregulated business lending - yes, the debt can be called in as there is no protection in place for business.
That's exactly right. There are laws in place to protect consumers in situations like this. Plus, there is no way house prices were down 50%.
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sl75
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Post by sl75 on Sept 19, 2019 15:36:40 GMT
With those loans paying back after default, how can you work out how much of each individual loan has been repaid? You state recoveries stand at 52.9% of defaults. For individual loans, that requires a deeper analysis than I'd be prepared to do now. I was just dividing the "Recoveries" line by the "Defaults" line on the back of the "Net earnings" summary card on the main screen of the dashboard.
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cwah
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Post by cwah on Sept 19, 2019 20:15:15 GMT
I actually have a loan from Funding Circle which defaulted in 2015.
The borrower is still repaying now and hasn't finished yet. But he almost repaid the full loan. Which made my account positive as I stopped investing as soon as I had this default
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