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Post by happyhippydad on Jun 21, 2015 11:02:44 GMT
Hello all,
I have 8 months left on PBL 025 and was hoping someone could tell me how long after the end of the loan it gets repaid in full?
It would be good to know what Saving Stream stipulate and also what has happened in practise to those that have already had loans which have finished?
Many thanks.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 21, 2015 14:18:52 GMT
Hello all, I have 8 months left on PBL 025 and was hoping someone could tell me how long after the end of the loan it gets repaid in full? It would be good to know what Saving Stream stipulate and also what has happened in practise to those that have already had loans which have finished? Many thanks. Unfortunately there are no hard and fast rules & depends on when SS get cash from the borrower. SS doesnt repay PBLs from its own funds. Therefore it depends on borrowers ability to refinance within the given timescale but this is subject to the whims of banks, govt agencies, lawyers, buyers etc so is unpredictable or in the case of a default in SS ability to realise the value of the asset which again depends on each individual set of circumstances In the case of my repaid PBLS (held every loan so far except 1) 50% have repaid on time or within a week of expiry , 2-3 have redeemed early and 2 (1 extension, 1 default) 3 months late but there are about half a dozen which are currently on one or more extensions. Missing repayment dates is not really an issue under SS's model as interest continues to be paid monthly by SS (so far covered by borrowers) or, if funds are required at expiry, loan parts can be sold on the market fairly quickly at the moment. This may change.
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webwiz
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Post by webwiz on Jun 21, 2015 17:36:00 GMT
If you absolutely require the funds on time for some purpose it might be better to dispose of the loan on the SM before it's due. The trick is timing. You have to leave enough in the loan to make it worth the buyer's while. I would suggest 2 months before the due date, but loans have sold on the SM almost right up to the date during periods when there were no new loans available.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,883
Likes: 11,106
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Post by ilmoro on Jun 21, 2015 18:30:27 GMT
but loans have sold on the SM almost right up to the date and beyond ... even in a default situation. Until there is an adverse event, there seem to be sufficient buyers who consider (or maybe dont) the risk: reward ratio favourable even on overdue loans as long as SS are willing to cover the interest. Minute that changes I would expect liquidity to decrease.
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