Author Topic: Late notes with 1-5 more payments left being sold..Why?  (Read 2163 times)

Houstoncory

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Late notes with 1-5 more payments left being sold..Why?
« on: July 20, 2016, 10:44:14 PM »
So, browsing some 16-30 day late notes Ive noticed there are a decent number of notes that have only 1-5 more payments left.
With those notes being so close to being paid off, whats the point of trying to sell a late note when there is little to no principal left?

Is the seller thinking there is little return left because of the minimal principal, and or that collection fees might eat up interest?

« Last Edit: July 20, 2016, 10:50:18 PM by Houstoncory »

fliphusker

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Re: Late notes with 1-5 more payments left being sold..Why?
« Reply #1 on: July 21, 2016, 01:04:52 PM »
That is just the crazy world of FOLIO.  Honestly I would say that 80% of everything listed on FOLIO has very little chance to be sold.  This is either due to the status of the notes or just simply the asking price. 
Like these.  No one is going to buy these notes.  These notes are actually priced with markups.
https://www.lendingclub.com/foliofn/browseNotesLoanPerf.action?showfoliofn=true&loan_id=8756233&order_id=13640782&note_id=34092830
https://www.lendingclub.com/foliofn/browseNotesLoanPerf.action?showfoliofn=true&loan_id=8545395&order_id=79270891&note_id=33906068
Here is a note that makes you scratch your head.  Is it worth .22 profit? 
https://www.lendingclub.com/foliofn/browseNotesLoanPerf.action?showfoliofn=true&loan_id=7372820&order_id=121261402&note_id=31209351

Collection fees alone would yield negative returns, I believe. 
Like I said above though, most notes on FOLIO are not priced to move.  I am going to assume that a majority of the ones who list them do not know their value, while some list them hoping for a bad filter to buy them at big markups. 

yojoakak

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Re: Late notes with 1-5 more payments left being sold..Why?
« Reply #2 on: July 21, 2016, 02:53:04 PM »
Back in the day I used to put all my notes on Foliofn, at high markups never intending to sell them, just because I preferred the Foliofn interface to the regular LC interface.

If someone bought one, well that was just a bonus. One time I sold a 5 cent note for like $20. I don't think they allow things like that anymore.

AnilG

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Re: Late notes with 1-5 more payments left being sold..Why?
« Reply #3 on: July 21, 2016, 03:05:34 PM »
There is a 70% premium limit now. You can't list a note for sale for more than 1.70x of amount due on the note.

Back in the day I used to put all my notes on Foliofn, at high markups never intending to sell them, just because I preferred the Foliofn interface to the regular LC interface.

If someone bought one, well that was just a bonus. One time I sold a 5 cent note for like $20. I don't think they allow things like that anymore.
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