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2419
Jan 16, 2014 23:08:25 GMT
Post by mead187 on Jan 16, 2014 23:08:25 GMT
My only definition of Deltas stems from that of Rivers or a crack team of US special forces, I shall add this one to the list.
Interesting that you sell loans at a certain point in time and renew them with fresh ones at a higher MBR. All of my defaults and significantly late but not yet defaulted loans have come within the first 6 months (been an investor for 10) You might have given me something to do for the next few weeks in terms of refreshing my portfolio.
Not sure what kind of time-scale that will take but I've personally found selling parts on the SM quite sluggish for two reasons. Parts for new loans flood the SM within hours and parts from older loans are less desirable due to the lower rates on offer, even at 0.3% I've failed to sell some after a month of listing them. Is it a case of taking the hit with selling fees and dropping them on Auto bidders or just being more patient?
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mikeb
Posts: 1,072 
Likes: 472
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2419
Jan 17, 2014 19:12:52 GMT
Post by mikeb on Jan 17, 2014 19:12:52 GMT
Is it a case of taking the hit with selling fees and dropping them on Auto bidders or just being more patient? Ultimately: Yes, and yes  If you add up the sum of monthly transactions [+interest, -fees] for each month you've had the loan, and finish off with a final [+interest on sale, +delta, -fees] then you should still be showing some profit. If not, you sold too early/too cheap So selling at par (0% markup, no delta/premium) loses you fees on the transaction, but still ahead. At least now it can't default. How long you choose to hold the ticking parcel for, is up to you! [Edit:] Of course this eventual-sell-at-par strategy is offset by those that are sold early in the cycle. So I've had bouts of people buying at 2.0-3.0% markups, some of which are clearly finger trouble/not thinking it through.
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2419
Jan 30, 2014 16:48:51 GMT
Post by mead187 on Jan 30, 2014 16:48:51 GMT
first time Ive ever received an Email from FC explaining a default, are they learning?
Why did this business go into default?
&******** Limited is a construction firm based in *******and they have been trading since 2008. The company went into liquidation as they had problems with cashflow, caused by a delay in payment from one contractor. We have analysed the guarantor's financial position and anticipate a recovery of 50p in the £ on this loan.
All in all not so bad, wont count my chickens before they hatch.
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agent69
Member of DD Central
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2419
Jan 30, 2014 17:48:43 GMT
Post by agent69 on Jan 30, 2014 17:48:43 GMT
We have analysed the guarantor's financial position and anticipate a recovery of 50p in the £ on this loan. If you get 50% on a defaulted FC loan you are a lucky man. My advice would be don't hold your breath.
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mikeb
Posts: 1,072
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2419
Jan 30, 2014 18:52:13 GMT
Post by mikeb on Jan 30, 2014 18:52:13 GMT
first time Ive ever received an Email from FC explaining a default, are they learning? No. This is normal practice, I've got a collection of those to prove it. Why you're surprised to see one is possibly because they've been really really slow/tolerant at defaulting delinquent loans, that's what's changed.
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jimbo
Posts: 234
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2419
Jan 30, 2014 22:43:45 GMT
via mobile
Post by jimbo on Jan 30, 2014 22:43:45 GMT
Andrww J, FC's new head of insolvency, is probably responsible for this positive change...
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mikeb
Posts: 1,072
Likes: 472
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2419
Jan 31, 2014 12:15:36 GMT
Post by mikeb on Jan 31, 2014 12:15:36 GMT
May 2012 is the first of these "Why did this business default?" that I received, long predating any recent personnel changes. So they are not a new innovation.
The reason people probably haven't seen one for a while is that the number of loans being actively defaulted has been low, preferring to let them slide and slide as "just a bit later than late". If you are a recent joiner to FC, you may not have seen one for a bit!
The change is an apparent tightening up on what constitutes a default. So over the next month or two, there'll be a flow of these explanations due to the defaults coming out of the woodwork.
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merlin
Minor shareholder in Assetz and many other companies.
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2419
Jan 31, 2014 15:51:59 GMT
Post by merlin on Jan 31, 2014 15:51:59 GMT
There may be another reason and that is forthcoming regulation. One of the many complaints made to the FCA during the consultation period seems to be criticism of the way that some P2P's have handled defaults. I personally commented stating that under the current system there was no incentive for P2P's to chase defaulters other than a nominal slap on the wrist. Maybe, just maybe, FC are trying to get in line before it becomes mandatory to do so and get kicked into doing it!
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mikeb
Posts: 1,072
Likes: 472
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2419
Jan 31, 2014 18:04:47 GMT
Post by mikeb on Jan 31, 2014 18:04:47 GMT
Maybe, just maybe, FC are trying to get in line before it becomes mandatory to do so and get kicked into doing it! That would make sense, entering regulation with a big backlog of Zombie Loans to explain would be harder than just clearing up the mess, and then going forward with a clean(er) slate.
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2419
Feb 25, 2014 11:36:11 GMT
Post by mead187 on Feb 25, 2014 11:36:11 GMT
24 Feb 2014 To clarify the previous comment, we expect to receive the first dividend in a years time. We will not place a comment in the interim unless new information is received.
21 Feb 2014 The guarantor has entered a voluntary arrangement with his creditors on 29 January 2014. The expected dividend for unsecured creditors is 57.25p in the £ and a first dividend is to be made shortly after first year of the arrangement. Subsequent dividends will be distributed to creditors on each subsequent anniversary. As and when we are in receipt of sufficient funds, We will make payments to lenders.
Only a year to wait for half the money back, IF they stick to it, guess its better than nowt
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blender
Member of DD Central
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2419
Feb 25, 2014 11:43:18 GMT
Post by blender on Feb 25, 2014 11:43:18 GMT
Only a year to wait for half the money back, IF they stick to it, guess its better than nowt Sorry but that is a year before the first installment of half the money.
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