The peer-to-peer lending platform’s first defaulted loan – Toome avenue development loan – was repaid to all investors on 21th of November 2017 with all applicable interest, overdue charge and indemnity.
On 14th of November 2017 the firm announced its first defaulted loan and the loan collateal was put up for public auction. At the moment of announcing the auction the borrower’s opportunity to regain control of the property by repaying all loans before the successful end of the auction was expressed. The borrower used this right on 21th of November and the defaulted loan was recovered.
EstateGuru’s COO Mihkel Stamm expressed his opinion that the firm managed to solve the situation in the best possible way as all investors received their initial investment along with all applicable interest, indemnity and overdue charge. “Today we can say that the total return for Toome avenue development loan’s investors was 13.72%. We are confident that EstateGuru’s risk assessment model is working and in the current case the loan was refinanced by another financial institutional, which provides additional assurance towards the valuation report.”
Stamm explains that another important factor and motivation for borrowers to repay the loans is the low LTV, which currently is 58% on average. “The current loan was resolved in a positive manner thanks to EstateGuru’s active loan processing, risk management and the borrower’s cooperativeness. Despite this, the invesors should consider that the normal period for selling a collateral is 2-3 months and up to 6 months in more difficult cases.”
On 14th of December 2017 EstateGuru announced its first defaulted loan which was Toome avenue development loan that was financed on 28th of October 2015. The loan was financed by 294 investors. The loan was secured by a private house in Tallinn, a 6.26 hectare property in Keila parish and a 6.31 hectare property in Keila parish. The loan was EstateGuru’s first loan default in the firm’s history.