Author Topic: Discount on notes Liquidation  (Read 4753 times)

allenlc

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Discount on notes Liquidation
« on: November 13, 2017, 04:05:34 PM »
I am trying to liquidate LC account and wanted to know 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?

Even at > 5% discount it's hard to sell current notes.

Lovinglifestyle

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Re: Discount on notes Liquidation
« Reply #1 on: November 14, 2017, 04:25:14 AM »
In general, I will discount a few times a day.  Sometimes buyers seem to be doing something else, like enjoying themselves, or out of money temporarily.  Waiting longer causes problems like going to payment processing or progressing on the late schedule.  A few days ago I had an in-grace, up-trend FICO, listed at -33%, and the next day it went to bankruptcy!
 
Automatic investment users have clear criteria that may not fit your notes for sale until the price is low enough.  The lowest I have to discount on a current note presently is -55%.  I respect their judgment.  The same reason they want a large discount is probably the reason I don't want to keep it myself. They are smart and seem to know what they are doing. I am liquidating only the dropping FICO trends or late pays now because those are easy to sort for at the Folio site.  Have already removed most lowest interest notes because those will have paid back less principal by the time they eventually get to the down or late state.  Any that maintain their FICO trends AND always pay on time can stay, at least until the 36 month ones are gone.

I thought I read your question a few days ago, but I must be mistaken.  Hope this answer helps a little.  A long time ago some famous posters said (sic) "if you haven't sold the note yet the price isn't low enough, and you can only sell it for what somebody is willing to pay."  Another asked "Are you pricing it to sell, or pricing it to keep?"  I still remind myself of that, and am glad I stuck to $25 notes.  That makes it easier to let go--or said another way, causes less pain!

Edit P.S.  That grace I mentioned that just went BK has paid me back $37.22 on my $25 note, in 52/60 payments on an F-4 at 23.76%.  $5.25 balance was remaining.
« Last Edit: November 14, 2017, 04:30:03 AM by Lovinglifestyle »

allenlc

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Re: Discount on notes Liquidation
« Reply #2 on: November 14, 2017, 01:24:30 PM »
Thank's for your insight. You are right about my other post. I did post my question in another section which didn't receive any response.

I started to discount few times a day. While investing i am aware of the charged off's risk. But there is little information (or overlooked) about the early exit strategy where there is potential risk of losing money. All my notes are $25 and still have 200 left to sell (current + late). Right now close to 40 current notes are for sale at 12.5% discount and waiting for buyer. Seems like the profits (and some principal) were lost between charge off's and discount selling after 2 years of LC account.

Fred93

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Re: Discount on notes Liquidation
« Reply #3 on: November 14, 2017, 03:32:24 PM »
It can take about 5 minutes from the time you post a note for sale until it is seen by buyers in the API. 

My program runs several times per minute, and I have no reason to believe others are different.  Therefore, after about 5 minutes, should be pretty much instant.

Any notes that fit within my criteria I would certainly buy instantly at the discounts you suggest.  Your notes must not meet my criteria.

There are many buyers for $25 notes, and almost no buyers above $100 notes. 

allenlc

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Re: Discount on notes Liquidation
« Reply #4 on: November 14, 2017, 06:50:18 PM »
Fred, here is a note id for sale 162799538. Can you please tell me whats wrong with it.

Fred93

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Re: Discount on notes Liquidation
« Reply #5 on: November 14, 2017, 07:38:21 PM »
Fred, here is a note id for sale 162799538. Can you please tell me whats wrong with it.

I don't have any good way to look up a note given only the note id.  Suggest you send the full URL for the page of information about the note, from the folio web site.  Then I can view the info.

allenlc

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Re: Discount on notes Liquidation
« Reply #6 on: November 15, 2017, 09:43:06 AM »
here is the note link

Rob L

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Re: Discount on notes Liquidation
« Reply #7 on: November 16, 2017, 08:23:08 AM »
I took a quick look at it yesterday.
First payment went in-grace-period. Never Late status is FALSE. That's probably the biggie.
Large loan amount $35k.
Earliest credit line 11/74, job title and length of employment n/a. Probably nearing retirement but applicant has verified income.
Revolving credit balance $84k, revolving line utilization 90.4%. DTI about 27%. Zip code appears to be Florida farm country.
Maybe this loan will work out swimmingly but the reasons it's an E4 (25.82% APR) are pretty clear.
High risk high reward loan and from comments here most lenders have moved to the shallow end of the risk pool.

Fred93

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Re: Discount on notes Liquidation
« Reply #8 on: November 16, 2017, 02:06:16 PM »
These are reasons my software would not have bid on this loan.  Doesn't mean it is bad, or that others might not bid.

1. I don't bid on loans this young.  When I buy aftermarket loans they have to be aged a bit more.

2. I don't bid on loans that have been late. 

I require a larger discount on E notes than ABCD, and a larger discount on 2015,6,7 than earlier years, but you have offered a very large discount, so that wouldn't be an issue.

apc3161

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Re: Discount on notes Liquidation
« Reply #9 on: November 17, 2017, 08:45:16 AM »
My program runs several times per minute, and I have no reason to believe others are different.

Fred, did you program this yourself, buy such a program, or are you using one of the 3rd party apps (e.g. NSR, peercube, etc.)

jheizer

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Re: Discount on notes Liquidation
« Reply #10 on: November 17, 2017, 11:20:49 AM »
Same here, in grace would be an instant stopping point.  I personally don't buy them at any cost.
Replacement to P2P Quant's Percentile Tool http://lc.geekminute.com

Fred93

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Re: Discount on notes Liquidation
« Reply #11 on: November 17, 2017, 01:29:23 PM »
My program runs several times per minute, and I have no reason to believe others are different.

Fred, did you program this yourself, buy such a program, or are you using one of the 3rd party apps (e.g. NSR, peercube, etc.)

Wrote it all myself. 

apc3161

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Re: Discount on notes Liquidation
« Reply #12 on: November 17, 2017, 07:21:51 PM »
Wrote it all myself.

Would you be willing to share your code, or link to tutorials where one learns to do this?

AnilG

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Re: Discount on notes Liquidation
« Reply #13 on: November 17, 2017, 08:59:26 PM »
In my experience, typically 2 days is optimum time period for maximum exposure for sale of a note at a particular discount.

Discounts vary widely. From PeerCube Folio Notes statistics https://www.peercube.com/folionotes/index, right now the maximum discount is 12.52% on Current Never Late notes while 40.65% on Current Previously Late notes. Typically, you will not be able to sell a note at smaller discount if there are already notes listed from same loan or similar loans at higher discount.

I am trying to liquidate LC account and wanted to know 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?

Even at > 5% discount it's hard to sell current notes.
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

allenlc

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Re: Discount on notes Liquidation
« Reply #14 on: November 18, 2017, 11:24:32 AM »
@Anil,  Thank you for the Folio note index. Very helpful.