flx
New Member
Posts: 1 
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Post by flx on Jan 29, 2015 21:00:22 GMT
Hi, I am new to the forum and fairly new to FC.
I wonder whether there is data available on the early acceptance of loans, in particular how many days before closure get loans usually accepted and whether borrowers in certain risk categories are more / less likely to accept their loan early. In addition, is it known whether the rate of defaults differs for loans accepted early?
If there is no hard data available, could you share your personal experience on these questions, please?
Many thanks.
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Post by GSV3MIaC on Jan 29, 2015 21:30:13 GMT
In my experience they are likely to be accepted within a few hours of being fully funded, or more rarely some time on the last day of the auction. No significant statistical data as to who is most likely or what the default rate is. It does appear that repeat offending is common .. I.e. if they have a second loan, they will Close early again.
I wish my crystal ball was more reliable in this regard.
Some loans close early, but are still never drawn down .. Weird or what.
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Post by goldservice on Jan 29, 2015 22:19:32 GMT
See p2pindependentforum.com/thread/1446/early-enders-random-fc-event though the info there is now out of date and relates to different market conditions. Closure of an auction and acceptance of the bids are different steps. FC requires the latter to happen within 5 working days of closure. Both steps are under the control of the borrower. As GSV has indicated, early closure is not always followed by prompt acceptance, which is baffling. I agree that early closing may indicate desperation on the part of the borrower. An example was 8*** which went Rate Band Removed within one week of acceptance when FC heard about a CCJ recently awarded against the borrower. Enquiries showed that the loan might have been required to solve a cash flow problem rather than for the proposed investment purpose. However, if the early close is near the end of an auction, and the average rate is not moving much, then closing early can make good sense. |
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wysiati
Member of DD Central
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Post by wysiati on Jan 30, 2015 2:22:25 GMT
Closure of an auction and acceptance of the bids are different steps. FC requires the latter to happen within 5 working days of closure..... Not quite true. The loan completion period of 5 working days runs from the originally scheduled auction deadline so in cases where the borrower accepts early and triggers 'pre-agreement' status it has more than 5 working days.
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Post by GSV3MIaC on Jan 30, 2015 10:06:37 GMT
Yep, had one close after a couple of hours sometime just after Xmas, and then it sat for 2 weeks before timing out with the feeble excuse ' borrower could not return the paperwork in time, loan will be relisted'
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