@kelvin > Appreciate you sharing your reply :)
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My first loan written off on LC
Loan note LN000-057-737 has been written off. 76% of my principle in that loan was lost which brings into question the value of vehicles that are commonly used as loan security.
It appears that in a bid to increase loans availability the loan quality is dropping fast. Another loan (LN000-050-756) is in collection currently.
76% of that one loan I suspect?
New investors would find it very difficult to diversify investing in LC as the very few loans that there are disappear in seconds. Previously some people thought that loan write-offs didn't occur on LC. But now the write-offs are coming fast.
PS: 76% of my principle in that particular loan was lost
I've gone from no loans in collection to 3 in the last 2 months
LN000-050-751 B2 Personal 36 months 18.74% 10% $100.00 17/10/2017 $22.77 $15.67 15/07/2019
LN000-054-905 B1 Personal 60 months 14.79% 10% $150.00 30/11/2017 $13.28 $14.46 28/05/2019
LN000-064-015 B2 Personal 60 months 19.10% 10% $100.00 04/04/2018 $5.17 $7.05 02/07/2019
The loans are going so quickly that there's no time to evaluate them. I just got into a B1 that was $15k (only just). The email took 300 seconds to deliver, which is a joke. The last 3 emails have all taken over 150 seconds to deliver and I've missed out.
LC's mail server must either be really crap or they have tens of thousands of investors in the mail queue.
I'm back up to over $1000 sitting in the kitty.
My initial thought was I liked to see property as security. However I asked LC what did they actually mean by property (as could mean a fridge, sofa or push bike!) But LC assured me it's a house. So next question I could not get any answer from LC. Has anyone else defined the following:
Is an instrument; as in a second, third or whatever mortgage registered onto the Title.
If so; Good ... BUT HOW could LC collection ever be successfully completed, in their specified period:- in a situation where the first Mortgagee is Happy As?... It's my understanding that any party other than the first Mortgagee Has Pretty Much No say or hope of getting anything much.....
Who has thoughts on: Just how good is property as security to us LC investors?
If a borrower used their property (house) as loan security, can LC force that borrower to sell the property if the borrower has defaulted on their loan?
My experience would say no... because LC will not be holding a first mtg over property ... I'm surprised no one has come in with any comments to my above post...
I do try to capture an image of loan details but, not always possible.
Has anyone got a copy of the loan details of my latest write-off ...
It was B2 Business loan 60 mths @19.75% with10% flex opened 28/12/2017 closed 17/01/2019
For me I invested $200 but only $48.20 Principal has been received ...
So considering this loan had guarantors (which legally gives not only business guarantee but private as well) I'm thinking much more should have been recoverable. Be extremely interesting to see the details if anyone has a copy of them.
I do wonder if LC have loosened up their standards and started accepting more riskier applicants!