duck
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Post by duck on Mar 9, 2014 8:19:05 GMT
This comment has appeared against a couple of loans that I was checking.
What implication(s) does this comment have? Obviously it gives me a bad feeling but is that correct?
The answer is probably in 'the other place' but I can't drag it out with a search.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Mar 9, 2014 9:06:55 GMT
This is from one of their newsletters.
There doesn't seem to be much feedback from them, but I suppose it all takes time once the lawyers are involved.
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duck
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Post by duck on Mar 9, 2014 14:47:14 GMT
Cheers jamesfrance that does seem to be the meaning but certainly one of the loans was up to date (arrears cleared so I was looking at selling) so perhaps matters have 'crossed in the post' or there are on going problems that are not highlighted.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Mar 9, 2014 16:17:33 GMT
I think the collection details stay with the loan until it is completely repaid. If it has gone green then it will show as up to date in the resale section, but probably show overdue payments which could put buyers off.
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james
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Post by james on Mar 10, 2014 3:58:55 GMT
It shows as green as soon as the payments catch up to all that are due, including any penalties are due. If an arrangement is made to pay penalties over time it will show as green after that adjustment. This includes loans that have previously defaulted and gone through arbitration and bailiff activity. The history of the collection activity remains visible. The past delays in payments remain visible, so you can see what has happened that way, looking for uneven payment dates is one way.
Provided the loan shows as green it is likely to sell fairly quickly, not much slower than other loans. The obligation to pay penalties will increase the return on investment for both seller and buyer and that can make these loans look more attractive than loans that have never had a problem.
I have two loans that have defaulted and are making payments. One is on an attachment of earnings order and is paying regularly that way; it is still in default. The other is paying unevenly and often adding more penalties to the existing penalties that the new arrangement for the loan included; it is not in default any more and the loan is green or orange depending on the status of the recent payments.
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duck
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Post by duck on Mar 10, 2014 4:56:28 GMT
It was exactly these types of loans that I was looking for. I tend to make a case by case decision sell/not sell based on the history, most are put on the market but I have held a couple and they are so far making regular payments.
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