Author Topic: First loan to make a payment, pays in full  (Read 9940 times)

JDowding

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Re: First loan to make a payment, pays in full
« Reply #15 on: July 24, 2013, 10:26:50 AM »
Yeah, maybe.  As a newcomer to LC, I selected mostly A--C loans, only now that I've been here a while am I seeing the value of buying "riskier" loans.   Could be that there are more early payoffs on A-C loans.


cnmor54

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Re: First loan to make a payment, pays in full
« Reply #16 on: July 24, 2013, 11:07:56 AM »
I have had my LC account for 2 months. I have 239 notes. 2 have paid off on first payment; a B5 that was a DC and a B3 that was a HI. Both had 0 inquires in last 6 months.

gamassey

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Re: First loan to make a payment, pays in full
« Reply #17 on: July 24, 2013, 11:15:49 AM »
Thanks for the information.  There must be some very compelling reason why so many people are paying off these loans in the first 2 or three payments.  The cost to the person is crazy high after they have paid the origination fee, so something odd is happening.

I wonder if these are young people with parents that have some money saved.  When the parent learns their child has taken out a 15% loan they smack them on head and offer to pay it off for them.

SarahV

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Re: First loan to make a payment, pays in full
« Reply #18 on: July 24, 2013, 11:31:18 AM »
It seems like people are just using it as a bridge loan. Sometimes people need cash immediately but can't get a "real" loan from the bank fast enough, so they do something like this as a way to get a quick cash advance and then pay it off as soon as they get the other one sorted out. Or maybe they are selling their house and buying a new one, but they need to put down a down payment on the new one before they get the money from the old one. And they can pay it off as soon as their house sale finishes up. It's an expensive way to do it but sometimes it's worth it to people if they would otherwise miss what they see as a big opportunity.

rlv99

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Re: First loan to make a payment, pays in full
« Reply #19 on: July 24, 2013, 11:52:50 AM »
My first investment was in April, 2013,  I bought into 11 loans. Of the 11, 2 were paid in full in the 1st month.

My account rep said it may have been their new institutional partners testing the system.  If so, LC  probably waived the origination fee so they could test it our expense.



Fred

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Re: First loan to make a payment, pays in full
« Reply #20 on: July 25, 2013, 01:26:14 AM »
My account rep said it may have been their new institutional partners testing the system.  If so, LC  probably waived the origination fee so they could test it our expense.

Hmm, this is new. 

Could it be that these partners are on the borrowing side,  that they are actually banks funneling borrowers loan requests to LC?

If true, that would be a great move from LC to bring more borrowers to the platform.
« Last Edit: July 25, 2013, 01:58:01 AM by Fred »

rlv99

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Re: First loan to make a payment, pays in full
« Reply #21 on: July 25, 2013, 12:58:37 PM »
[quoteIf true, that would be a great move from LC to bring more borrowers to the platform.][/quote]

Makes sense, Fred, but how is that great for the investor if we still lose money on the transaction?  It would be win-win if LC waived the payment fee on early payoff.

Fred

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Re: First loan to make a payment, pays in full
« Reply #22 on: July 25, 2013, 07:15:49 PM »
Makes sense, Fred, but how is that great for the investor if we still lose money on the transaction?

My "great move" comment was directed on the posibility of LC opening the borrowing side to insititutional partners.

Like you, I also do not like it if in fact LC "waived the origination fee so they could test it our expense."

rockinray

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Re: First loan to make a payment, pays in full
« Reply #23 on: July 26, 2013, 07:42:27 AM »
I have 77 notes so far. Just been investing for a short time.

3 have paid in full: 1-A1. 1-B3, and 1-C2.

nekein

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Re: First loan to make a payment, pays in full
« Reply #24 on: December 04, 2019, 07:44:07 AM »
Its really pretty awesome. Thanks.