Late loans if you are not happy get out !

Firstly, I'm not in FS. It was on my watch-list for some time, but the balance of views on here, and FS's refusal to answer/deal with, what appear to me to be legitimate concerns has convinced me that there are better platforms around.

If I were, I would be equally happy to buy or sell under your stated terms depending on what my own DD revealed about a particular loan. However, I feel that your scheme is unnecessarily inflexible. I would far rather deal with a platform that had a fully functional SM where parties were able to deal at whatever premium or discount they could agree on; including where a loan was at default, so long as both parties were made aware of the current state of the loan.

I realise that your scheme tries to give a cleaner exit for someone wanting to get out, and that a fully functioning SM might not be quite as clean depending on the accrued interest assignment policy. If this really was an overriding concern then a suitable policy could easily be devised. However, even for someone who is very keen to exit, surely it's the capital that is their primary concern. Whatever the accrued interest assignment policy was, the discount could be adjusted to account for it.

Bondora does although that is not a recommendation (I currently have 1128 defaults)

In the future, when the p2p industry is dealing with multiple executors simultaneously, they'll be tripping-over themselves to offer this.

If they weren't in denial, they'd realise it.

Not sure if in defaulted loans, but Crowd2fund allows dealing with late or “In Arrangement” loans etc,  one on there now was 10.5% but offered at 15%, and I find the 30 day left cut-off annoying on FS.

I suspect it has to do with the unusual handling of interest in SM loans.

Everything has a value, and if one needs out, the fair market value is what a willing seller will sell to a willing buyer at. This might need to be without the interest element on problem loans, but that can all be reflected in the selling price of any distressed loan.  FS, time for a rethink in your liquidity ethos methinks!

You have discovered the big problem in the illiquidity of P2P. My mother requires about 3K a month from her investments in P2P to cover care home costs. I can manage this at the moment from loans repaying or selling if required. 

She is 92 and won’t be around forever however som of her current investments might be meaning probate will be a nightmare.
By being able to sell late loans this problem would be reduced.


I am sure I’m not the only one in this position and there will be a lot of money tied up that the cost of recovery by probate lawyers may be more than the actual funds recovered

Maybe platforms should have a charity 'lender' you can donate unsellable loans to, if you want to wind up an account quickly. If any recoveries are made they go to a good cause at least.

Excuse my ignorance. How are such illiquid assets such as P2P loans dealt with in probate, both practically and from a valuation perspective for inheritance tax?