Author Topic: Too Many Charged Off Loans - Help Needed  (Read 1431 times)

allenlc

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Too Many Charged Off Loans - Help Needed
« on: October 16, 2017, 04:20:17 PM »
I have been a reader on this board and this is my first post.

Opened LC account 2years back as IRA and started investing using LR (aggressive) automated service. There has been a huge decline in my account value by appx. 18% value due to charge offs.

Is there a way to minimize the charge offs?

Any helpful advice is highly appreciated.

Fred93

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Re: Too Many Charged Off Loans - Help Needed
« Reply #1 on: October 16, 2017, 06:22:26 PM »
Opened LC account 2years back as IRA and started investing using LR (aggressive) automated service. There has been a huge decline in my account value by appx. 18% value due to charge offs.

2 years ago was a bad time to dive into the aggressive end of the loans, as those high risk loans from that vintage have done poorly.   Mostly you're now locked in by the timing of decisions you made some time ago.

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Is there a way to minimize the charge offs?

You can try to sell some notes on the secondary market.  This is a lot of work.  Notes that are already late sell for steep discounts (and you know why!) .   There isn't good data on what price is reasonable for current loans, so you either have to do your own math or guess or accept what the market will bear.

Alternately, you can wait it out.  Much of the damage is already done I think.

allenlc

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Re: Too Many Charged Off Loans - Help Needed
« Reply #2 on: October 17, 2017, 11:04:49 AM »
Thank you for your response.

As you mentioned only option is to sell them on secondary market. I was reading other posts on the forum and see the steep prices for selling the late notes. Looks like i had to take a huge loss.


Edward Reid

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Re: Too Many Charged Off Loans - Help Needed
« Reply #3 on: November 01, 2017, 09:54:35 PM »
Is there a way to minimize the charge offs?
In the future, pick loans by hand.

Edward

allenlc

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Re: Too Many Charged Off Loans - Help Needed
« Reply #4 on: November 08, 2017, 10:15:21 AM »
How long should i wait before to increase discount for selling notes on Folio? Some posts from couple of years back suggests to wait for a week before increasing the discount if the notes doesn't sell at current asking price. Is it still the case in 2017 with robo platforms?