[investforfreedom]

Would you still sell a late note on Folio if the collection log keeps saying, "Borrower contacted LendingClub"?  How about "Borrower contacted Collection Agency"?  What are the chances of borrowers making good their late payments if they contacted LC or collection agencies? 

[New Jersey Guy]

"What are the chances of borrowers making good their late payments if they contacted LC or collection agencies?  "

I would have to say better than average.

But this is a double edged sword.  Reason being is that you don't know WHY the borrower called.  Most likely it's about a missed payment.  So you would think.

I bought this note on Friday the 16th for $12.
https://www.lendingclub.com/account/loanPerf.action?loan_id=3697958&order_id=10743185&note_id=20707887
It settled Monday the 19th.

I put it back up for sale the same evening for $1.48
Anybody want it?

[Randawl]

I'd give you $0.61 for it.         

[core]

$0.62 

Good thing LC didn't copy Prosper in that area.  What a nightmare forced auctions would be.

[Ran]

from: New Jersey Guy on August 26, 2013, 06:38:47 PM

[GS]

If it says borrower contacted LC, or LC contacted borrower, but doesn't say "borrower promised to pay", I'd take that as a bad sign.  Of course, the person making the log might have been lazy and not entered that line ... Unfortunately, there is a lot of guess work based on information LC provides.

[TravelingPennies]

"Is it reasonable to argue that this borrower is using LC loans to pay equity to his mortgage then go bankruptcy assuming court will let him keep his house?"

Who knows!
Like GS said, there's a lot of inaccurate information and guesswork on our part.

[TravelingPennies]

I recently found that comment on one of my notes: "borrower contacted lending club", after it went into grace on the second of 36 payments.  A week or so later, the loan was payed off in full.  So, yeah, would have been nice to know that was the reason that they called in.  I wouldn't have bothered putting it up for sale on folio if I had that info.  It didn't sell.

[TravelingPennies]

from: Ran on August 26, 2013, 07:07:08 PM

[yojoakak]

It's not "Bankruptcy", it's "Bankruptcy counsel" also known as "Credit counseling".

It would be interesting to know how may loans have that notation without ever going into Bankruptcy.

[TravelingPennies]

"It would be interesting to know how may loans have that notation without ever going into Bankruptcy."

Interesting?  Yes.  Important?  No.
To me, it's the biggest indicator of looming trouble.  This holds espcially true if the loan purpose was for "Credit Card" or "Debt Consolidation". 

Obviously, I look at many, many 31-90 Day Late notes.  I've seen many where in one month, they get "Bankruptcy Councel", and the following month you see "Borrower declared Chapter 7".

I do not think I have ever seen one where they get "Bankruptcy Councel", and then see monthly payments made after the notation.

Personally, I'd like to know what is discussed when a borrower calls and obtains Bankruptcy Counsel.  But as far as investing is concerned, to me, it's a DEAD, worthless note.

[TravelingPennies]

from: yojoakak on August 27, 2013, 10:49:46 AM

[TravelingPennies]

"Counsel as in lawyer, not as in counseling."

So you're saying that the borrower is calling up LC to inform them that have received outside counseling?  Okay, that makes sense if you read it from that point of view.

I actually thought they called LC and told them that they were considering Bankruptcy, and LC gave them information on how to proceed.  Now I'm thinking, why would LC do that?  It wouldn't be in their best interest to give people information on how not to pay their loan.

Core, the world would be in a confusing state if it weren't for you.

[TravelingPennies]

from: New Jersey Guy on August 27, 2013, 01:26:03 PM

[TravelingPennies]

from: New Jersey Guy on August 26, 2013, 06:38:47 PM