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  1. #1051
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    Quote Originally Posted by icyfire View Post
    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.
    The problem with vehicles as security is that if the car has been raced, rallied & rolled, by the time it is repossessed it may be worth next to nothing. Even if it was insured, should it be pranged when the driver has been drinking or perhaps after the WOF has expired the insurance won't pay out so we the lenders miss out.

  2. #1052
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    Quote Originally Posted by icyfire View Post
    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?
    Short answer is yes but it's a very lengthy process that can take a year or more and any money received is firstly used to pay out the 1st mortgagee. By the time legal costs, agent's fees and unpaid/penalty interest and costs due to the 1st mortgagee are paid out, dependent on the owners equity in the property, there may be little if any left over for the 2nd mortgagee.

  3. #1053
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    Jan 2017
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    Quote Originally Posted by joker View Post
    Short answer is yes but it's a very lengthy process that can take a year or more and any money received is firstly used to pay out the 1st mortgagee. By the time legal costs, agent's fees and unpaid/penalty interest and costs due to the 1st mortgagee are paid out, dependent on the owners equity in the property, there may be little if any left over for the 2nd mortgagee.
    In other words, it's almost a false sense of security investing in loans that have property/vehicle as security.

  4. #1054
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    Jan 2017
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    149

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    Quote Originally Posted by Darchie View Post
    I do wonder if LC have loosened up their standards and started accepting more riskier applicants!
    LC are trying hard to increase the number of loans to meet the investors demand and LC needs to ensure that the loans quality is not dropping. Perhaps greed is setting in and if that's the case then the trust in the platform will suffer in the long term. i could be wrong and only time will tell.

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