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Author Topic: How to tell if a note for sale on folio is in Grace period?

h
  • Posts: 1
I had read on here somewhere that there is a period where the buyer's view on folio shows a note is processing, but the seller's view somehow indicates that its already in the grace period (i.e. in some sort of late trouble).

I am looking at a note that seems priced lower than I would expect.   It is in processing on my buyer's view for its first payment.  Its due date is 12/2 and its now 12/6.

I see one other low price note that has a due date of 11/30 and is in "processing"

Should I be suspicious?  Can anyone lend anymore details on this topic (old links or posts)?

Thanks!
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y
  • Posts: 182
I suggest never buying a Processing note.

Either:

A) the payment comes in and cancels the sale (although LendingClub does not give exact details on how this happens), or

B) the payment doesn't come in and you just bought a note with a missed payment.


Neither of which is probably what you want.
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M
  • Posts: 16
I've sold many notes in "processing" where the buyer received the payment. There must be some very small window wherein the sale gets cancelled and the seller receives the payment.
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T
  • Posts: 6588
There is no special seller's view that tells you when it's late-but-not-really-quite-grace-period. It just shows as "processing" for longer than it should. Sellers that pay very close attention will know when a note is supposed to complete its payment, and if it isn't done processing by then, they will sell it at a discount.

If you look at a note at a deep discount and think "Wow, this is too good to be true!" it probably is...
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L
  • Posts: 241
Is there some easier way to relist notes on the canceled list than finding them again on the general all notes list? 

I can't believe there isn't a "Relist" box to check after a note is removed for "Loan PAYMENT", or by "User" for whatever reason.  That happened to 4 of mine yesterday.  I'm on a Folio learning curve and it's gobbling up re-investment time!
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T
  • Posts: 6588
Every time I've been keeping an eye on account activity, it has showed up ~8-10 hours after "processing" changes to "completed." That is definitely not going to give a seller any advance notice. The outstanding principal and interest changes at the same time as it changes to "completed." (Except on Folio... but if you click through you'll see the correct numbers.) 

I have no idea when they update the download files, though.
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t
  • Posts: 28
FYI, on the cancelled sale due to loan payment. It is typical that the cancellation doesn't show up in your account listing for 3-4 business days. Very frustrating. Best advice is to take a screen shot every day of you folio account screen.
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