keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,594
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Post by keitha on Jan 28, 2020 15:03:39 GMT
No Payment since 25 September so defaulted on 24th Jan
recovery payment posted on 27th Jan of 0.85% so about 115 Payments to recover ( 9 years and a half years ) to pay back the capital on a loan that should have been repaid end of December 2020.
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Stonk
Stonking
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Post by Stonk on Jan 28, 2020 19:16:32 GMT
You often get a small recovery payment just after the default. I suspect this is where the borrower has made a partial payment (perhaps to try and avoid being defaulted), and once FC default the loan this partial payment is distributed to lenders.
In my experience, this single quick recovery payment is in no way an indication of the size or schedule of future recovery payments. Most recoveries, if indeed there are any, don't start for many months after the default. It's way too early to judge this one.
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sl75
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Post by sl75 on Jan 28, 2020 19:31:32 GMT
You often get a small recovery payment just after the default. I suspect this is where the borrower has made a partial payment (perhaps to try and avoid being defaulted), and once FC default the loan this partial payment is distributed to lenders.
In my experience, this single quick recovery payment is in no way an indication of the size or schedule of future recovery payments. Most recoveries, if indeed there are any, don't start for many months after the default. It's way too early to judge this one.
Unless they've improved their back end systems since I was active, there always used to be some kind of restriction (for non-defaulted loans) that they could only make each payment due under the loan contract in full (albeit possibly late) or not at all.
... so when borrowers made a partial payment under a later agreement, they'd hold those payments until there was enough to make a full monthly payment.
Once a loan has defaulted, any "non-round" amount (i.e. not an exact number of outstanding payments) they're holding would then get distributed under the "recovery payments" rules which seem to be accounted for separately.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,594
Likes: 2,624
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Post by keitha on Jan 28, 2020 21:46:08 GMT
You often get a small recovery payment just after the default. I suspect this is where the borrower has made a partial payment (perhaps to try and avoid being defaulted), and once FC default the loan this partial payment is distributed to lenders.
In my experience, this single quick recovery payment is in no way an indication of the size or schedule of future recovery payments. Most recoveries, if indeed there are any, don't start for many months after the default. It's way too early to judge this one.
I'm used to the odd tiny payment usually a penny or 2, this is significantly more, maybe it was a payment to try to avoid the default, never experienced one before. There is a note saying recovery payment received. spotted today that this takes my recoveries over 3%
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