Now I have new experience – default. Defaults are usual in lending industry. The risks and how they are managed – that is what is interesting in this case: MARISMAS DE ODIEL
535k loan was taken with 11,5% yearly interest rate for period of 6 months on July of 2018. 3,5k of interest was paid.
The interesting part is that Housers asked every investor to vote what to do next.
I like the idea that everybody is allowed to control their fate, but on the other hand, Housers, with 80+ of staff could prepare some analysis and give their opinion on what is better to do.
Another interesting about this Spanish default is that Housers outsource recovery of money for a hefty 12% + VAT fee. (additionaly Housers pays 1.5% from their pocket)
So investors in this project had two options:
- A. prolong interest (with lower interest rate!!!)
- B. give for management company the right to recover the debt.
Housers still did not answer me (email sent 05.17 and second 05.19), why the interest rate for prolonging loan was reduced.
Customer support is terrible. 3 emails sent. No reply. Phone call 3 minutes hold – no answer = promise to call me back.
p.s. Housers earned 8.5% on raising this loan.