Negative loans, interest, and selling on the SM

Dec 24, 2016 15:32:56 GMT bracknellboy said:

Forgive my ignorance but only moderately active on SS. 

With -ve loans, some have updates stating that payment has been received to extend for a month. Others do not have correspondning statement, but yet are not defaulted. A) is there a way of knowing which are actively paying interest, short of analysing transaction statements to spot the missing ones ? B) If a loan is not currently paying interest, what happens if you sell it on the SM  - at the time when the loan is settled up/renewed/recovered, is there a proper accurate settle up with the seller receiving interest for the period held prior to sale (well listing anyway) ?

All loans are actively paying monthly interest to lenders (other than the ONE defaulted loan which is accruing interest). What you've actually landed upon is one of the grey areas of SS.

In the past it was generally understood that the loan would not be defaulted while the borrower themselves are still stumping up the interest during any over-run period and I think this is the case in the majority of cases.

More recently comments by SS have suggested that they are contributing to interest payments in some circumstances, although the criterion used is not generally clear.

Suffice to say that defaulting a loan is probably more the absolute last resort on SS than on most other platforms.