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Post by boomingaway on Apr 4, 2016 9:38:56 GMT
Hey everyone,
I have a few questions:
1. How late does a repayment have to be before I know that it is late? 2. If I click on an existing loan part, how do I know if they have made previous late repayments? 3. Can I even buy a loan part that has previous late repayments? 4. I just got a message from 17382 that the March payment has been distributed today. I purchased the loan part today. The March repayment was due on March 17th. Does the seller know that the repayment is late, and is that why he sold it? Did I actually make a foolish buy? Will there be a note somewhere that they were 2 weeks late on a payment?
Thank you very much!
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adrianc
Member of DD Central
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Post by adrianc on Apr 4, 2016 10:04:33 GMT
The payment would have been made before the part was listed - a part cannot be for sale if there's a payment processing or late. It's up to you to do your own DD before buying any part - especially an E-band - and the 30th March note saying that the payment had been received would have been visible to you before purchase, on the Repayment tab. If a payment is significantly late, a note is made. If it's only gently late, then a note may not be made, but it may have been flagged in this thread - p2pindependentforum.com/thread/2412/loans-late - although it does seem to be looking a little unloved of late.
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sl75
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Post by sl75 on Apr 4, 2016 10:13:30 GMT
... There is a rule of thumb around here that if something goes late once (some people give it twice, but not me), it might happen again and might not actually cough up next time, so better to sell it to an unsuspecting newbie. Which is good for those following a different rule of thumb - someone who has sufficient respect for lenders to catch up a late payment is likely to show similar respect in the future when it comes to further missed payments. (I've found a large proportion of actual losses to defaults, and especially those who are least co-operative and need to be chased through courts etc. without offering anything that wasn't metaphorically beaten out of them came with no prior warning, whereas many of the problems that caused loans to be panic-sold turned out to be one-off events)
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blender
Member of DD Central
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Post by blender on Apr 4, 2016 10:24:45 GMT
... If a payment is significantly late, a note is made. If it's only gently late, then a note may not be made, but it may have been flagged in this thread - p2pindependentforum.com/thread/2412/loans-late - although it does seem to be looking a little unloved of late. The thread has not been used recently presumably because FC are consistently adding notes to loans which have recovered from late. This used to be their rule, that they always added a note to a loan which had been late and then recovered, because it was material information to a purchaser and presumably useful to FC. If anyone notices a loan which has been late and is now recovered and tradeable but without a note, then please add it to the thread. I agree with sl75 above. FC determine whether a loan is tradeable or not, and if it is then lenders have many different strategies for buying and selling. What is important is that the loan's history is available for those who wish to look before purchasing.
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