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Post by valueinvestor123 on Feb 17, 2016 12:40:21 GMT
Are the loans that are showing minus days much more risky? I see that those come up and get snapped up as well.
Has there ever been an instance where capital has been lost (or interest not paid in the end?). I presume the interest continues to be paid even if the loan has been delayed/extended.
Thanks, vi123
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
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Post by cooling_dude on Feb 17, 2016 12:45:22 GMT
First and foremost; always do your own due diligence, and take my advice with a pinch of salt  I personally avoid the loans with a negative term. In fact, I try and offload loans when they have less than 100 days left; however this is just my rule of thumb. If you do DD on these loans, along with looking here for updates on the current status the negative loans, you will find that some are rather safe to invest in. For example, PBL4a/b (-155 days!) is due to relaunch as a new loan, so is as safe as any of the other loans.
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Post by Deleted on Feb 17, 2016 14:01:10 GMT
First and foremost; always do your own due diligence, and take my advice with a pinch of salt I personally avoid the loans with a negative term. In fact, I try and offload loans when they have less than 100 days left; however this is just my rule of thumb. If you do DD on these loans, along with looking here for updates on the current status the negative loans, you will find that some are rather safe to invest in. For example, PBL4a/b (-155 days!) is due to relaunch as a new loan, so is as safe as any of the other loans. Loans showing a negative term are simply those that SS haven't managed to update formally. Of course for most of them, SS have agreed an extension with the borrower. I don't think they are more risky than others because they are extended. In fact I still see some excellent low (absolute) loan total and low LTV which are 'exended' e.g. 16-17-18 and for those my personal evaluation tells me they are safer than many others where the initial valuation was too generous (the risk of these properties going lower in value is quite limited and they might receive support from the compensation fund if needed). The same fact that SS have not defaulted them shows they are confident the borrower will find additional financing/sales opportunities in the short term.
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adrianc
Member of DD Central
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Post by adrianc on Feb 17, 2016 15:15:51 GMT
I don't think they are more risky than others because they are extended. The main risk is in being left holding the baby when they repay - and that applies to plenty of short-but-positive-remaining loans, too. Of the loans that are out there, a LOT are <90 day. That Damned Bungalow is heading rapidly for six months over. Ignoring updates, of £67m in live loans... £7.5m is overdue. £7m is 0-90day. £15m is 90-180day. The pipeline is £31m.
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