Author Topic: Hardship loans an even bigger PITA than I thought?  (Read 471 times)

rj2

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Hardship loans an even bigger PITA than I thought?
« on: June 07, 2020, 04:46:08 PM »
I can't prove this yet, I need to watch what happens, and maybe others can watch and confirm or deny it.

I have listed my hardship loans for sale on folio and usually no-one buys them, but recently, some of them sold. Good news right?

Not so fast: It appears that the borrower made a payment, the loan reverted to current non-hardship status, AND folio did not remove my offer "payment pending", just kept it up. Of course since there is a recent payment my heavily discounted price is quite attractive! I saw 4-5 loans sell this way before I brought a halt to it.

I don't know if these are out of band payments? Like, the borrower got back on their feet and started paying off earlier than they needed to, or if they were scheduled hardship payments. But when I look at the loan history now I see "deferred, deferred, payment completed" with no indication that it was in hardship status, and the next payment is "scheduled".

I also believe that my offer of sale was not visible to anyone UNTIL that payment was processed. Originally I listed my hardship loans for sale at a steep discount. No one buys them. I believe this is because LC does not actually display them to anyone. I even tried discounting a couple of low value hardship loans by huge amounts (70%, 80%, 90%) just to see if anyone would buy them--no one does. So I think although I see them for sale in folio no one else does.

It's *possible* that I made a mistake, that the loans that sold had reverted to normal status, folio cancelled the offer, but I didn't notice, and then somehow I resubmitted my own deeply discounted offer without checking. But I don't think I did that. I will be watching more carefully going forward to see if I can prove it.

For now I am listing them at a price I am willing to sell IF the borrower makes a payment, and I am assuming they won't sell until the borrower does that.

« Last Edit: June 07, 2020, 04:57:40 PM by rj2 »

latitude42

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Re: Hardship loans an even bigger PITA than I thought?
« Reply #1 on: June 08, 2020, 05:49:34 PM »
I've been wondering many of these same questions. Is it possible your sold notes were cancelled?

I've had 4 hardship loans listed for sale for a few weeks (probably over a month). None have ever sold. Every time I search for them on Browse Notes, I can't find them. So I think no one else sees them.

One of them made a payment at some point. 4/21 deferred. 5/21 deferred. 6/20 applied. Don't know when they paid. Still shows as Hardship. Still cannot find it on Browse Notes.

I'm hoping that the notes will become "actually for sale" on the scheduled due date.

kib

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Re: Hardship loans an even bigger PITA than I thought?
« Reply #2 on: June 12, 2020, 10:53:23 AM »
As I'm sure you know by now, they're now not allowing us to sell our hardship notes at all.  So no matter what kind of incentive we'd be willing to offer to get out of this fresh hell, we're stuck holding the bag on these.  And they're offering an incentive for the purchase of new notes, so selling anything at all requires a bigger discount than ever.  Oh, and has anyone else been unable to transfer "available" money out of their account this week?  Thanks again, LC, always looking out for your clients wallets.   >:(

Roux

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Re: Hardship loans an even bigger PITA than I thought?
« Reply #3 on: June 12, 2020, 02:43:40 PM »
We have a feature at LiquidP2P called constant value. This feature keeps your account at set value X and transfers the excess cash to your bank account weekly. I have not seen any Constant Value accounts with outgoing bank transfer issues. All transfers scheduled this week were completed.