Recoveries

[thezinfan]

1) why are any of you holding notes until they charge off?   

2) I recall last year around this time I received a recovery payment. Maybe they happen quarterly?

3) Is the recovery about 3-5%?

4) yaoyao - go to Account summary, the click on the MORE DETAILS hyperlink in the middle left section

[yaoyao]

Got it. Thanks.

In my case, I bought this note (current) with up-trend FICO and good income at a discount (7%).  I didnt pay attention to collection logs (borrower contacted LC).  Within a month, the borrower provided Bankruptcy counsel information.  I was not able to sell the note.  I also buy distressed notes from time to time.  Some of them may be charged off eventually.  It is just part of the game.

[AmCap]

Yeah when you buy distressed notes you take the risk you can't resell them...a lot of those notes I flipped for a pretty good return, but for some of them I got left holding the bag.

[thezinfan]

In May  I've sold 3 notes that were clearly marked BK chapter 7, and one marked Borrower Deceased, and someone bought them for a few percent discount each. I guess if you are actively buying "bad" notes as a recovery play you'll run into some charge offs. I buy on the retail platform and sell on folio, which i know isn't an option for everyone.

[AmCap]

Well, I had written off this strategy as a money loser, but I may need to reevaluate after this development.

[yojoakak]

I have never had a recovery yet.  How do you know that you have a recovery? I did have a charge-off note.   Do you have to click on the notes individually?

Check you Account Activity. There's a type "Recovery" (is it new? I don't remember ever seeing it before).

Or you can check the individual Loan Performance pages. They'll add an extra field "Recoveries" in the "Received Payments" box.

[Zach]

Good catch. I be never noticed that before.

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[rawraw]

I received 5 cents on one of the first notes I ever had that charged off on LC back in 2011.

[lender_john]

I have never had a recovery yet.  How do you know that you have a recovery? I did have a charge-off note.   Do you have to click on the notes individually?

Check you Account Activity. There's a type "Recovery" (is it new? I don't remember ever seeing it before).

Or you can check the individual Loan Performance pages. They'll add an extra field "Recoveries" in the "Received Payments" box.

Interestingly enough I don't see 'Recovery' as a type under my account activity.
I do see several recoveries under Mischellenious that posted small amounts in the last few days.

[AmCap]

It just struck me; they probably did a sale to a debt buyer for a portfolio of charged off loans.

[Randawl]

It just struck me; they probably did a sale to a debt buyer for a portfolio of charged off loans.

That's a possibility.  Good thinking.

[New Jersey Guy]

"It just struck me; they probably did a sale to a debt buyer for a portfolio of charged off loans."

Fine by me.  I got $6.30 back.  It's better than the nothing I had prior.