Author Topic: Account Liquidation- How did you get the last of your notes to sell?  (Read 2168 times)

dr.everett

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This question is aimed at others who have liquidated their LC accounts. I'm to the point where I have about 45 notes in my Taxable account, and about 500 notes in my IRA account. These would seem to be the notes that for whatever reason no one wants. (At any cost)

Selling them is becoming more and more difficult- I'm up to an 11% discount now and not really selling much of them. A good day of sales is 20-30 of them, a typical day is 5-10.

Here's the question:

1. To sell your remaining notes- did you have to put an extreme discount on them to move them?
2. What was the discount?
3. What other strategy did you use that I may not have considered or thought of?

I'm not looking to have a fire sale as I've lost enough money between chargeoffs and discounted sales. If the general consensus is to just let them run off on their own, I may do that.

Curious to hear other's thoughts/experiences.

lascott

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #1 on: March 11, 2018, 10:23:35 PM »
Great thread as I'm moving my Taxable money as well as some ROTH IRA money to other investments.

To your point for your taxable account, you could let them ride and your only hassle is dealing with the tax docs for a couple (36-month loans) or few (60-month loans) and transferring the money occasionally to your bank account. The IRA account is complicated if you get below 10K as you have a $100 AFAIK. 

Will be interested in some of your questions answers.
« Last Edit: March 22, 2018, 03:20:51 PM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Eelyeroc

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #2 on: March 12, 2018, 05:17:45 AM »
You are having the same issue as me. See my Topic Listing "Notes on Folio For Lending Club Not Showing Up On Browse For Loans". Your notes are not showing up on a general "browse". Look to see if you can find your listings.  According to Folio, "only certain investors can see these with certain criteria set".

dr.everett

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #3 on: March 12, 2018, 08:46:54 PM »
You are having the same issue as me. See my Topic Listing "Notes on Folio For Lending Club Not Showing Up On Browse For Loans". Your notes are not showing up on a general "browse". Look to see if you can find your listings.  According to Folio, "only certain investors can see these with certain criteria set".

To Eelyeroc's point- I'm assuming that the notes I have left have something like a "Been 16-30" flag set, or something similar. If that's the case, that's fine, at least I'd know that was the reason why. I haven't gone the route of downloading the excel spreadsheet to look at them yet to see if this is the case.

OleBill

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #4 on: March 13, 2018, 12:31:46 PM »
I too have been attempting to sell off the notes in my Lending Club IRA account. I've been at it for several months and probably won't finish for another month. I've been writing a blog, billlanke.blogspot.com, for about a year dealing with my Lending Club experience. I've currently posted the method of selling notes and the issue surrounding this. I assume all of the readers in this forum are familiar with the process.

My next post will deal with the process I use and contain some numbers showing daily progress. I'll follow this with an updated status on how the overall fire sale is going. Then I hope to try to make a stab at computing how much selling out early cost me. Follow along if you wish.

Lovinglifestyle

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #5 on: March 13, 2018, 08:01:31 PM »
I've been trying to sell a current note with a perfect payment record. Its last completed payment date was 3-7-18.  It appears to be available to sell, but after entering the price and "submit" I get this: "One or more of your Notes cannot be sold. Note Id(s): 70825904, 73176492".  The actual note ID is 82606235.

I asked LC about it, but have not yet received a reply.  Weird.  The only reason that could apply is if there is a pending BK.  There are no comments under the payment history. 

When the sell function works, dropping the price is the way I get notes sold.  They have to be priced to sell--not priced to keep.  I sold the worst notes first, and am letting the best live out their lives until something regresses.  I keep an eye on the monthly FICO trend chart via the sort function on the Folio SELL page for what to sell.

Haven't read OleBill's blog yet, but am looking forward to doing that!  Thanks!
Edit to add:  P.S.  On the 14th now, I am now able to list the note, although I did not yet get a reply from LC.
2nd Edit:  8 min. after listing for -2.56% it sold.
« Last Edit: March 14, 2018, 11:51:59 PM by Lovinglifestyle »

OleBill

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #6 on: March 17, 2018, 11:38:44 AM »
I'm continuing my selloff of notes. Yesterday I sold 8 more and decided to look at these in detail. They had been offered with an average discount of about 8.5% and not sold. When this average increased to about 11%, they sold. However the 2.5% increase in discount failed to get many others sold. I've put the details on my blog.

dr.everett

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #7 on: March 17, 2018, 01:01:06 PM »
I'm continuing my selloff of notes. Yesterday I sold 8 more and decided to look at these in detail. They had been offered with an average discount of about 8.5% and not sold. When this average increased to about 11%, they sold. However the 2.5% increase in discount failed to get many others sold. I've put the details on my blog.

I'm currently discounting at 12% to get any significant activity. As long as that continues to work, that's where I'll stay. If/when it stops, I'll reconsider if I want to increase the discount, or let the remainder die a slow and painful death.

OleBill

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #8 on: March 24, 2018, 11:34:47 AM »
I'm currently discounting at 12% to get any significant activity. As long as that continues to work, that's where I'll stay. If/when it stops, I'll reconsider if I want to increase the discount, or let the remainder die a slow and painful death.

I'm continuing my practice of marking down every note I'm selling for 1.5-2% per day. I'm currently down to an average of about a 14% discount (varying from 1% to 32%). Some are selling, and some not. I had done some calculations trying to estimate how much this discounting is really costing me and documented this on my blog. It turns out, less than I feared (probably about 5%)

I'm going to update where I stand in liquidating my notes later today and will also post this. By the way, I am liquidating this IRA account to simplify my wife's financial life after I pass on. I hope to be done with this in a couple of weeks. When I do disengage from this account, I'll post the steps I took to close it.

OleBill

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #9 on: April 04, 2018, 12:26:16 PM »
I'm nearing the end of my selling off the notes in my IRA. I've sold 10 current notes at discounts from 19% to 39%. I also sold one in it's grace period for $5.00 (a 77% discount), and one over 30 days late for $0.20.

I still have 4 that are over 30 days late but apparently can't offer them for sale on FOLIOfn. I guess I'll have to hope they make a partial payment and I can then list them, or hope they get charged off soon.

dr.everett

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #10 on: April 05, 2018, 12:55:34 AM »
I think I'm getting to the end of the road as well. Taxable account is down to 30 notes, about $300 is sellable, the rest will charge off at some point. Discount is currently at 16% and not much is selling. I'm not willing at this point to go any farther to get rid of the last notes through Folio- I think what's left at this point probably has black marks and will not sell.

My IRA is down to 300 notes with ~ $5k sellable, and ~ $1K will charge off. Again, selling has really tailed off. Really hating the thought of a long goodbye on the IRA. Might go a few more points down to see if anything else significant sells but I have a strong feeling it won't.

hashiryu

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #11 on: April 07, 2018, 03:42:09 PM »
If you don't mind keeping the Taxable account open longer, you can simply transfer notes from your IRA to Taxable account through FOLIOfn. This will unblock you from closing the IRA account with LC. You can let these unwanted notes mature in your Taxable account.

Fred93

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #12 on: April 07, 2018, 03:48:32 PM »
If you don't mind keeping the Taxable account open longer, you can simply transfer notes from your IRA to Taxable account through FOLIOfn. This will unblock you from closing the IRA account with LC. You can let these unwanted notes mature in your Taxable account.

You might wanna read the IRS rules on self-dealing before using this strategy.

hashiryu

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #13 on: April 07, 2018, 04:24:58 PM »
If you don't mind keeping the Taxable account open longer, you can simply transfer notes from your IRA to Taxable account through FOLIOfn. This will unblock you from closing the IRA account with LC. You can let these unwanted notes mature in your Taxable account.

You might wanna read the IRS rules on self-dealing before using this strategy.

Be creative.

dr.everett

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Re: Account Liquidation- How did you get the last of your notes to sell?
« Reply #14 on: April 07, 2018, 05:19:12 PM »
If you don't mind keeping the Taxable account open longer, you can simply transfer notes from your IRA to Taxable account through FOLIOfn. This will unblock you from closing the IRA account with LC. You can let these unwanted notes mature in your Taxable account.

You might wanna read the IRS rules on self-dealing before using this strategy.

I tried to do this early on and ran into the thing that others have talked about- not being able to find your notes when they are listed. I never had luck with it- even when downloading the entire Folio note list to Excel- I found few if any of my notes.

At this point in the game I have two concerns- how long does it take me to sell the remaining notes with a minimal loss, and how much effort does that method require.

I managed to sell a few more notes in the IRA this weekend, but I think my taxable account is done. It's down to about 25 notes and they seem to be the ones that no one wants. Thinking based on what others have said I may eventually go to 20% discount but not planning to go further at this time.