Author Topic: HELP! LC portfolio got slammed to -2.57!!!  (Read 4607 times)

Rhonda9080

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HELP! LC portfolio got slammed to -2.57!!!
« on: September 17, 2017, 08:07:44 PM »
I am a very small investor on both Prosper and Lending Club. Recently, my LC portfolio got slammed to -2.57 due to a flurry of late and charged off loans. Oh! The pain in my little purse! Anyway, I was considering complete liquidation when I did a little study of the Folio platform and decided to try sell-off of all unseasoned loans, but use money to reinvest only in seasoned loans on folio with less than 15 payments left. I even bought a couple with less than 5 payments. My Folio notes return is projected at 23.32% now, and combined (with adjusted for past due) is now -59. I guess that's better than -2-57? Is there nya good long-term strategy for recouping losses and getting my P2P back on track?

Any advise would be very appreciated. I have my late and grace period notes up for sale at deep discounts (abt-30%) but no takers.

I also wish in some ways I could liquidate Prosper because they don't offer secondary market anymore, and I could use the liquid investment money to work with, but they are outperforming what I see on LC right now. Any advise there?

Thank you!



twigster

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #1 on: September 17, 2017, 08:32:53 PM »
I started liquidating Prosper a while ago by turning off re investment.  We will see how long it takes to run the entire accounts out (ROTH and regular).  I had less in there than in LC.  The returns were lagging LC and then when they took away the secondary market that kind of cinched it.

Rhonda9080

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #2 on: September 17, 2017, 09:07:28 PM »
Yeah, Prosper's lack of secondary market outlet makes me nervous. :-\

EmilyFoxSeaton

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #3 on: September 18, 2017, 08:12:51 AM »
but use money to reinvest only in seasoned loans on folio with less than 15 payments left. I even bought a couple with less than 5 payments.

I did a project earlier in the year buying only loans with less than 15 payments and it was just as big a grace period rate as the regular loans. So far all recovered. I purchased on the theory that these people would pay off the loan if they had already paid into it but it seems like that doesn't work and they just get lazy about paying at all.

yojoakak

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #4 on: September 18, 2017, 08:40:27 AM »
You lost $2.57? Whelp... there goes retirement.

anabio

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #5 on: September 18, 2017, 09:22:25 AM »
but use money to reinvest only in seasoned loans on folio with less than 15 payments left. I even bought a couple with less than 5 payments.

I did a project earlier in the year buying only loans with less than 15 payments and it was just as big a grace period rate as the regular loans. So far all recovered. I purchased on the theory that these people would pay off the loan if they had already paid into it but it seems like that doesn't work and they just get lazy about paying at all.

FYI. So far I have had 4 loans with 2 payments remaining go charged off. One of them was a bankruptcy so that is understandable. I wonder about the other 3. If things were that bad shouldn't there have been a bankruptcy involved? If things were not that bad...did they just choose to forgo the LC loan because they thought it would be the easiest to default on with less repercussions than say a credit card default?

I guess in the grand scheme of things you would rather have one pay for 34 payments than one with only a few payments...after all I did make money on those 34 month payment loans...I just wonder sometimes...
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

Rhonda9080

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #6 on: September 18, 2017, 10:11:15 PM »
but use money to reinvest only in seasoned loans on folio with less than 15 payments left. I even bought a couple with less than 5 payments.

I did a project earlier in the year buying only loans with less than 15 payments and it was just as big a grace period rate as the regular loans. So far all recovered. I purchased on the theory that these people would pay off the loan if they had already paid into it but it seems like that doesn't work and they just get lazy about paying at all.

FYI. So far I have had 4 loans with 2 payments remaining go charged off. One of them was a bankruptcy so that is understandable. I wonder about the other 3. If things were that bad shouldn't there have been a bankruptcy involved? If things were not that bad...did they just choose to forgo the LC loan because they thought it would be the easiest to default on with less repercussions than say a credit card default?

I guess in the grand scheme of things you would rather have one pay for 34 payments than one with only a few payments...after all I did make money on those 34 month payment loans...I just wonder sometimes...

I guess with this type investment - its the risk one takes to (potentially) earn higher interest than measly bank "savings" account. I needed hit to my LC investments like hole in the head having recently been faced with a disabling disease, so I guess I'm a little in panic mode to get my LC investment back above water. I'm going to stick to a very strict criteria and hope for the best. As we all know, hardships happen. One wonders if such a default as described could even be due to a death or serious illness. I know that I have taken a serious hit with my income since my diagnosis, but so far, have made all my bills and debts. But it can be a struggle. 

anabio

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #7 on: September 19, 2017, 09:30:21 AM »

... One wonders if such a default as described could even be due to a death or serious illness. I know that I have taken a serious hit with my income since my diagnosis, but so far, have made all my bills and debts. But it can be a struggle.

As far as died: LC puts entry in note history stating borrower died...at least I have seen that entry in a couple of my loans.

As far as disability, etc. I would think if things had been that bad they would have declared bankruptcy (the best reason to use bankruptcy).
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

Rhonda9080

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Re: HELP! LC portfolio got slammed to -2.57!!!
« Reply #8 on: September 19, 2017, 09:44:29 PM »
Didn't know that about deceased! ****I like your Will Rogers quote so much!