E**** Maria B****** Boat (2099721870 - final id) DEFAULT

This will differ from platform to platform.  Where a borrower is making monthly payments, default generally comes when a payment doesn't arrive, and that could come as early as the first one.  But default actually could come earlier if the borrower has a disaster and becomes bankrupt the day after drawdown.  Where a platform retains interest at drawdown and the borrower doesn't have to make payments, then the loan shouldn't become a default during the retained interest period except in the disaster case.

With FS pawnbroking loans, the chance of an early default is very nearly zero -- principally because FS need to have no contact at all with the borrower before the end of the loan's term.  So FS generally will not find out that the security won't be redeemed until the time comes to redeem it.  Sometimes I think we need reminding that pawnbroking 'loans' aren't really loans at all.  FS effectively are buying the security from the 'borrower', and giving the borrower the option to buy the security back at the end of the term for the same price plus the fees (which we often refer to as 'interest').  If the borrower doesn't exercise their option, then it's up to FS to sell the security for the best price, which hopefully will be enough to cover the original 'sale' price plus the accrued fees.  Any surplus goes back to the original owner of the security.  If the proceeds are insufficient, FS and its investors lose out.  That's why pawnbroking fees are so high.  There is no recourse to the borrower.

Other FS loans call for interest to be paid at the end of the term, so problems probably won't show up until then.

These are not low-risk ideas.  They may be low probability, but not low risk.

The bulk of my P2P lending is split reasonably evenly between SS, AC, and FS.  I started out all in Z (about 5 years ago) but went off them as they took more and more control away from their investors and the available interest rates decreased.  If I were starting again now, I think I'd prefer RS over Z, but I'd probably still be moving toward SS, AC, and FS, because I can afford to take the higher risks in the hope for higher rewards.  But that's because my risk tolerance is high.  Everyone has to find a level they're happy with -- the extra potential is not worth it if you can't sleep at night!

I'm also in crowdfunding of property -- basically BtL -- via The House Crowd.  (They've gone into development lending recently, but I haven't diversified into that with them since I have enough difficulty trying to keep control over my existing investments.)

And finally I'm in shares (UK & US), and a small bit of VCTs.

New Update says to be revalued for loan extension at higher value. Looks like my log burner will be going hungry.

OK.  I will defer to someone with superior knowledge. 

My main point, however, is that the only thing FS have to rely on for recovering the money they've paid to the borrower and getting paid for their service if the borrower doesn't pay to 'redeem' the security is whatever they can sell the security for.  AIUI, FS cannot pursue the borrower and ask them to make up any shortfall.

Is that correct?

Interest received by FS being renewed tomorrow. Check your renewal settings

fundingsecure:  Is it fair to presume that the idea of increasing the loan amount has been dropped -- at least for the moment -- and that this will be a simple renewal of the existing loan?

If so, is an increased loan still being considered?  If so, are you any closer to receiving an updated valuation?