andyb
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Post by andyb on Jun 10, 2016 19:09:51 GMT
Hi all,
so so far I have been avoiding the loan parts with minus days like the plague without knowing if I should be or not. Am I doing the right thing or am I missing out on some easy interest?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 10, 2016 19:13:48 GMT
Hi all, so so far I have been avoiding the loan parts with minus days like the plague without knowing if I should be or not. Am I doing the right thing or am I missing out on some easy interest? Some are riskier than others (the safer ones being some that are being turned into DFLs); however, as far as I am concerned, you're doing the sensible thing. Interest is held up until a loan falls into a negative "due date" ( see *note), so after this date SS are paying for your interest out of their own pocket, and in most cases are chasing repayment from the borrower. You also want to think about how quick you can offload loans if you need your money quick; if the SM becomes static for a couple of weeks due to a couple of big loans going live, and you want access to you money, you're going to find it hard to sell any negative duration loans. *Note : The due date on some loans has been open for debate, with SS not updating the due date, or not using the correct loan duration at the start of the loan. However, ATM (AFAICS) all the indicated terms, and due dates are correct...
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 10, 2016 20:28:06 GMT
Hi all, so so far I have been avoiding the loan parts with minus days like the plague without knowing if I should be or not. Am I doing the right thing or am I missing out on some easy interest? Some are riskier than others (the safer ones being some that are being turned into DFLs); however, as far as I am concerned, you're doing the sensible thing. Interest is held up until a loan falls into a negative "due date" ( see *note), so after this date SS are paying for your interest out of their own pocket, and in most cases are chasing repayment from the borrower. You also want to think about how quick you can offload loans if you need your money quick; if the SM becomes static for a couple of weeks due to a couple of big loans going live, and you want access to you money, you're going to find it hard to sell any negative duration loans. *Note : The due date on some loans has been open for debate, with SS not updating the due date, or not using the correct loan duration at the start of the loan. However, ATM (AFAICS) all the indicated terms, and due dates are correct...Nope. Borrowers are paying according to SS
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 10, 2016 20:29:34 GMT
Some are riskier than others (the safer ones being some that are being turned into DFLs); however, as far as I am concerned, you're doing the sensible thing. Interest is held up until a loan falls into a negative "due date" ( see *note), so after this date SS are paying for your interest out of their own pocket, and in most cases are chasing repayment from the borrower. You also want to think about how quick you can offload loans if you need your money quick; if the SM becomes static for a couple of weeks due to a couple of big loans going live, and you want access to you money, you're going to find it hard to sell any negative duration loans. *Note : The due date on some loans has been open for debate, with SS not updating the due date, or not using the correct loan duration at the start of the loan. However, ATM (AFAICS) all the indicated terms, and due dates are correct...Nope. Borrowers are paying according to SS How? If the interest which has been paid upfront has been used up, surely (up until repayment of the loan, which I assume includes the additional interest) it's coming out of SS pocket?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 10, 2016 22:56:11 GMT
Nope. Borrowers are paying according to SS How? If the interest which has been paid upfront has been used up, surely (up until repayment of the loan, which I assume includes the additional interest) it's coming out of SS pocket? Any extension is only granted if borrower pays the interest up front.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 10, 2016 23:22:49 GMT
How? If the interest which has been paid upfront has been used up, surely (up until repayment of the loan, which I assume includes the additional interest) it's coming out of SS pocket? Any extension is only granted if borrower pays the interest up front. Which I understand, but then the indicated remaining term is then increased (or should be) on the website, so is no longer in a negative period. I think some strings may have been crossed (unless I'm just completely wrong, and maybe I am - just say no dude, you're just an idiot...  ). As a result of the OP, I'm referring to loans that have an indicated negative term, which (unless I need to be corrected) means the interest that the borrower initially sent has run out. As such while a loan is indicated with "negative term", and up until either the loan is extended (i.e. further interest is sent) or the loan is repaid, then SS are paying us borrowers interest out of their own pocket. Is the above correct, or have I got it wrong?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
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Post by ilmoro on Jun 10, 2016 23:31:31 GMT
Any extension is only granted if borrower pays the interest up front. Which I understand, but then the indicated remaining term is then increased (or should be) on the website, so is no longer in a negative period. I think some strings may have been crossed (unless I'm just completely wrong, and maybe I am - just say no dude, you're just an idiot... ). As a result of the OP, I'm referring to loans that have an indicated negative term, which (unless I need to be corrected) means the interest that the borrower initially sent has run out. As such while a loan is indicated with "negative term", and up until either the loan is extended (i.e. further interest is sent) or the loan is repaid, then SS are paying us borrowers interest out of their own pocket. Is the above correct, or have I got it wrong? According to SS it applies to negative term loans as well. If interest isnt paid for extension, loan would be defaulted. No idea why they dont amend term displayed but then we know terms on many of the loans pre pbl74 are potential inaccurate.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Jun 10, 2016 23:39:35 GMT
Which I understand, but then the indicated remaining term is then increased (or should be) on the website, so is no longer in a negative period. I think some strings may have been crossed (unless I'm just completely wrong, and maybe I am - just say no dude, you're just an idiot... ). As a result of the OP, I'm referring to loans that have an indicated negative term, which (unless I need to be corrected) means the interest that the borrower initially sent has run out. As such while a loan is indicated with "negative term", and up until either the loan is extended (i.e. further interest is sent) or the loan is repaid, then SS are paying us borrowers interest out of their own pocket. Is the above correct, or have I got it wrong? According to SS it applies to negative term loans as well. If interest isnt paid for extension, loan would be defaulted. No idea why they dont amend term displayed but then we know terms on many of the loans pre pbl74 are potential inaccurate. I never knew that.. So are you saying, to the best of your ( superior  ) knowledge, that all the "negative duration" loans (even the Garden Centre, up until the default) have had the interest sent from the borrowers? Not going to change my opinion of negative loans, as I still view them as the riskier loans on the platform, but it does make me wonder why SS don't amend the indicated remaining term.
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Post by earthbound on Jun 10, 2016 23:40:38 GMT
sorry for butting in... is it a fact then that pbl020 actually 'did' pay the interest for the 150 odd days delay before it was declared a default.?
edit .. apologies crossed with CD
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freddy
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Post by freddy on Jun 11, 2016 2:27:40 GMT
Hi all, so so far I have been avoiding the loan parts with minus days like the plague without knowing if I should be or not. Am I doing the right thing or am I missing out on some easy interest? Personally I do avoid the negative day loans unless the SS updates indicate a very strong possibility of progressing to a DFL. other than prospective DFLs, If I were to keep loans until their maturity or they are in the negative I would certainly only do it with those that have the more favourable LTVs (55% or less). Personally I start looking to sell out of loans from 90 days to go. Sometimes I still end up holding them for another month or 6 weeks whilst I wait for a new one to invest in but they are on my list to go from the +90 day point. This allows for a quick sell on the SM and enables me to fully utilise the INPL with relative peace of mind at the times when I don't want to increase my overall investment with SS. Providing SS keep the loans coming on a monthly basis this works for me (SO FAR).
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pom
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Post by pom on Jun 11, 2016 8:22:26 GMT
Which I understand, but then the indicated remaining term is then increased (or should be) on the website, so is no longer in a negative period. I think some strings may have been crossed (unless I'm just completely wrong, and maybe I am - just say no dude, you're just an idiot... ). As a result of the OP, I'm referring to loans that have an indicated negative term, which (unless I need to be corrected) means the interest that the borrower initially sent has run out. As such while a loan is indicated with "negative term", and up until either the loan is extended (i.e. further interest is sent) or the loan is repaid, then SS are paying us borrowers interest out of their own pocket. Is the above correct, or have I got it wrong? According to SS it applies to negative term loans as well. If interest isnt paid for extension, loan would be defaulted. No idea why they dont amend term displayed but then we know terms on many of the loans pre pbl74 are potential inaccurate. Maybe the borrowers are paying on a rolling basis rather than agreeing (and having to pay for) a multiple month extension ?
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Post by retired2005 on Jun 11, 2016 8:44:52 GMT
Surely this is a straightforward question, to which we are entitled to know the answer should savingstream care to tell us ? (the question of interest payments, rather than the OP....) |
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Post by meledor on Jun 11, 2016 8:53:26 GMT
According to SS it applies to negative term loans as well. If interest isnt paid for extension, loan would be defaulted. No idea why they dont amend term displayed but then we know terms on many of the loans pre pbl74 are potential inaccurate. Maybe the borrowers are paying on a rolling basis rather than agreeing (and having to pay for) a multiple month extension ? Agreed. That was my understanding as well. I believe that SS is only paying interest when it hasn't received it from the borrower at the pre-drawdown stage.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 11, 2016 9:16:17 GMT
I've dropped them an e-mail to see what they say, and will let you know their response.
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Post by earthbound on Jun 11, 2016 9:21:02 GMT
Along similar lines, does anyone know how the Q&A works on the SS website under each loan, ive used it 3 times over the last week, asking simple questions about specific loans ie the huddersfield loan. i left a message and all 3 times they have not been answered and are no longer there to view.  |
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). As a result of the OP, I'm referring to loans that have an indicated negative term, which (unless I need to be corrected) means the interest that the borrower initially sent has run out. As such while a loan is indicated with "negative term", and up until either the loan is extended (i.e. further interest is sent) or the loan is repaid, then SS are paying us borrowers interest out of their own pocket.
) knowledge, that all the "negative duration" loans (even the Garden Centre, up until the default) have had the interest sent from the borrowers?
