Author Topic: "Borrower Contacted LendingClub," etc.  (Read 13277 times)

investforfreedom

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"Borrower Contacted LendingClub," etc.
« on: August 26, 2013, 06:21:57 PM »
Would you still sell a late note on Folio if the collection log keeps saying, "Borrower contacted LendingClub"?  How about "Borrower contacted Collection Agency"?  What are the chances of borrowers making good their late payments if they contacted LC or collection agencies? 

New Jersey Guy

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Re: "Borrower Contacted LendingClub," etc.
« Reply #1 on: August 26, 2013, 06:38:47 PM »
"What are the chances of borrowers making good their late payments if they contacted LC or collection agencies?  "

I would have to say better than average.

But this is a double edged sword.  Reason being is that you don't know WHY the borrower called.  Most likely it's about a missed payment.  So you would think.

I bought this note on Friday the 16th for $12.
https://www.lendingclub.com/account/loanPerf.action?loan_id=3697958&order_id=10743185&note_id=20707887
It settled Monday the 19th.

I put it back up for sale the same evening for $1.48
Anybody want it?
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

Randawl

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Re: "Borrower Contacted LendingClub," etc.
« Reply #2 on: August 26, 2013, 06:48:51 PM »
I'd give you $0.61 for it.         ;)

core

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Re: "Borrower Contacted LendingClub," etc.
« Reply #3 on: August 26, 2013, 06:54:15 PM »
$0.62  :)

Good thing LC didn't copy Prosper in that area.  What a nightmare forced auctions would be.

Ran

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Re: "Borrower Contacted LendingClub," etc.
« Reply #4 on: August 26, 2013, 07:07:08 PM »
"What are the chances of borrowers making good their late payments if they contacted LC or collection agencies?  "

I would have to say better than average.

But this is a double edged sword.  Reason being is that you don't know WHY the borrower called.  Most likely it's about a missed payment.  So you would think.

I bought this note on Friday the 16th for $12.
https://www.lendingclub.com/account/loanPerf.action?loan_id=3697958&order_id=10743185&note_id=20707887
It settled Monday the 19th.

I put it back up for sale the same evening for $1.48
Anybody want it?

Is it reasonable to argue that this borrower is using LC loans to pay equity to his mortgage then go bankruptcy assuming court will let him keep his house?

GS

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Re: "Borrower Contacted LendingClub," etc.
« Reply #5 on: August 26, 2013, 07:29:25 PM »
If it says borrower contacted LC, or LC contacted borrower, but doesn't say "borrower promised to pay", I'd take that as a bad sign.  Of course, the person making the log might have been lazy and not entered that line ... Unfortunately, there is a lot of guess work based on information LC provides.

New Jersey Guy

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Re: "Borrower Contacted LendingClub," etc.
« Reply #6 on: August 26, 2013, 08:27:50 PM »
"Is it reasonable to argue that this borrower is using LC loans to pay equity to his mortgage then go bankruptcy assuming court will let him keep his house?"

Who knows!
Like GS said, there's a lot of inaccurate information and guesswork on our part.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

415ab

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Re: "Borrower Contacted LendingClub," etc.
« Reply #7 on: August 26, 2013, 09:06:06 PM »
I recently found that comment on one of my notes: "borrower contacted lending club", after it went into grace on the second of 36 payments.  A week or so later, the loan was payed off in full.  So, yeah, would have been nice to know that was the reason that they called in.  I wouldn't have bothered putting it up for sale on folio if I had that info.  It didn't sell.

core

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Re: "Borrower Contacted LendingClub," etc.
« Reply #8 on: August 27, 2013, 01:50:30 AM »
Is it reasonable to argue that this borrower is using LC loans to pay equity to his mortgage then go bankruptcy assuming court will let him keep his house?

You are suggesting the borrower lied about the loan purpose?  How little faith you have in your fellow man! ;)

Based on the credit score history, in this case he/she appears to have used the funds for the intended purpose:  Paying down $19k in credit card debt.  Paying down a mortgage balance does not boost your credit score like we see here.  And the following the initial bump the FICO declined steadily each month.  Maybe he ran the cards back up due to some event or maybe that $5k medical debt started hassling him via collections.  It's pretty sad filing BK over such a low total debt though.

yojoakak

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Re: "Borrower Contacted LendingClub," etc.
« Reply #9 on: August 27, 2013, 10:49:46 AM »
It's not "Bankruptcy", it's "Bankruptcy counsel" also known as "Credit counseling".

It would be interesting to know how may loans have that notation without ever going into Bankruptcy.

New Jersey Guy

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Re: "Borrower Contacted LendingClub," etc.
« Reply #10 on: August 27, 2013, 11:30:07 AM »
"It would be interesting to know how may loans have that notation without ever going into Bankruptcy."

Interesting?  Yes.  Important?  No.
To me, it's the biggest indicator of looming trouble.  This holds espcially true if the loan purpose was for "Credit Card" or "Debt Consolidation". 

Obviously, I look at many, many 31-90 Day Late notes.  I've seen many where in one month, they get "Bankruptcy Councel", and the following month you see "Borrower declared Chapter 7".

I do not think I have ever seen one where they get "Bankruptcy Councel", and then see monthly payments made after the notation.

Personally, I'd like to know what is discussed when a borrower calls and obtains Bankruptcy Counsel.  But as far as investing is concerned, to me, it's a DEAD, worthless note.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

core

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Re: "Borrower Contacted LendingClub," etc.
« Reply #11 on: August 27, 2013, 11:54:49 AM »
It's not "Bankruptcy", it's "Bankruptcy counsel" also known as "Credit counseling".

Personally, I'd like to know what is discussed when a borrower calls and obtains Bankruptcy Counsel.

I don't know how you guys are reading it, but when I see "Borrower provided Bankruptcy counsel information" that means to me that the borrower called up and gave LC their BK attorney's contact information so LC would quit hounding them.  Usually followed by an actual filing.

Counsel as in lawyer, not as in counseling.

There is a notation "Borrower engaged with debt consolidator" which is probably the closest thing I've seen to credit counseling.  I just searched my whole database for anything similar.  Nothing else. 

I did come across something interesting though:  "Performing advanced borrower tracking activities"  I wonder what in the heck that is?   As in like a stakeout?  Heheheh

New Jersey Guy

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Re: "Borrower Contacted LendingClub," etc.
« Reply #12 on: August 27, 2013, 01:26:03 PM »
"Counsel as in lawyer, not as in counseling."

So you're saying that the borrower is calling up LC to inform them that have received outside counseling?  Okay, that makes sense if you read it from that point of view.

I actually thought they called LC and told them that they were considering Bankruptcy, and LC gave them information on how to proceed.  Now I'm thinking, why would LC do that?  It wouldn't be in their best interest to give people information on how not to pay their loan.

Core, the world would be in a confusing state if it weren't for you.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

core

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Re: "Borrower Contacted LendingClub," etc.
« Reply #13 on: August 27, 2013, 01:49:17 PM »
So you're saying that the borrower is calling up LC to inform them that have received outside counseling? 

Sorta.  But not counseling.  The borrower retained counsel.  A clearer notation on the account would be "Borrower provided Lending Club with contact information for his/her attorney"  The borrower might have done nothing more than give an attorney a small down payment and they haven't even discussed much yet.  The call to LC would be a simple exchange of contact information.  The BK attorney's office takes all the collections calls from creditors so the borrower doesn't have to deal with all that on top of everything else going on in their life while they are rounding up the cash for the actual BK filing and going through the process.  That's often how it works, or so I hear... I've never been through it myself.

Core, the world would be in a confusing state if it weren't for you.

Now there's one I haven't heard before.  Sure beats what I normally have to listen to. ;)

core

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Re: "Borrower Contacted LendingClub," etc.
« Reply #14 on: August 27, 2013, 02:28:29 PM »
I bought this note on Friday the 16th for $12.
https://www.lendingclub.com/account/loanPerf.action?loan_id=3697958&order_id=10743185&note_id=20707887
It settled Monday the 19th.

I put it back up for sale the same evening for $1.48
Anybody want it?

I'm curious... I see links to Folio notes all the time on here like that; is there an easy way to buy them from such a link?   Whenever I see one that I want to buy I have to adjust my search parameters so that the note _should_ show up in the list (based on what I know about it), then sort by note/loan ID and keep using Ctrl+F on each page of results until I find it.  And even then there's no guarantee it's still for sale or in the results of your search.

That's a lot of effort to find one little note.  There should be a 'Buy' button on the page where the details are displayed, but noooo, that would be too easy.  Am I just being dense?  Is there another way?