Author Topic: How to tell if a note for sale on folio is in Grace period?  (Read 4650 times)

hoss_ster

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How to tell if a note for sale on folio is in Grace period?
« on: December 06, 2012, 09:08:17 PM »
I had read on here somewhere that there is a period where the buyer's view on folio shows a note is processing, but the seller's view somehow indicates that its already in the grace period (i.e. in some sort of late trouble).

I am looking at a note that seems priced lower than I would expect.   It is in processing on my buyer's view for its first payment.  Its due date is 12/2 and its now 12/6.

I see one other low price note that has a due date of 11/30 and is in "processing"

Should I be suspicious?  Can anyone lend anymore details on this topic (old links or posts)?

Thanks!
« Last Edit: December 06, 2012, 09:14:23 PM by hoss_ster »

yojoakak

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #1 on: December 06, 2012, 09:15:03 PM »
I suggest never buying a Processing note.

Either:

A) the payment comes in and cancels the sale (although LendingClub does not give exact details on how this happens), or

B) the payment doesn't come in and you just bought a note with a missed payment.


Neither of which is probably what you want.

MTaylor

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #2 on: December 06, 2012, 10:07:31 PM »
I've sold many notes in "processing" where the buyer received the payment. There must be some very small window wherein the sale gets cancelled and the seller receives the payment.

SarahV

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #3 on: December 06, 2012, 10:14:41 PM »
There is no special seller's view that tells you when it's late-but-not-really-quite-grace-period. It just shows as "processing" for longer than it should. Sellers that pay very close attention will know when a note is supposed to complete its payment, and if it isn't done processing by then, they will sell it at a discount.

If you look at a note at a deep discount and think "Wow, this is too good to be true!" it probably is...

yojoakak

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #4 on: December 06, 2012, 10:35:56 PM »
I've sold many notes in "processing" where the buyer received the payment. There must be some very small window wherein the sale gets cancelled and the seller receives the payment.

I usually get 2 or 3 Canceled Sell Orders a month, those are the only ones I notice.

They're almost impossible to piece back together after the fact.

For example, I currently show 1 Canceled Sell Order. The Date on it is "12/02/12".



But if I check the payment history for that note the Due Date is "11/19/12" and the Completion Date is "11/26/12"  (that date agrees with Account Activity, and the next Due Date isn't until "12/19/12".)



So it looks like the sale got canceled for a payment that came in the week before! How does that make any sense?

Now, if you're comfortable with that kind of uncertainty, more power to you. But I am not.
« Last Edit: December 06, 2012, 10:56:19 PM by yojoakak »

Lovinglifestyle

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #5 on: December 07, 2012, 12:12:48 AM »
Is there some easier way to relist notes on the canceled list than finding them again on the general all notes list? 

I can't believe there isn't a "Relist" box to check after a note is removed for "Loan PAYMENT", or by "User" for whatever reason.  That happened to 4 of mine yesterday.  I'm on a Folio learning curve and it's gobbling up re-investment time!

rawraw

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #6 on: December 07, 2012, 05:34:43 AM »
There is no special seller's view that tells you when it's late-but-not-really-quite-grace-period. It just shows as "processing" for longer than it should. Sellers that pay very close attention will know when a note is supposed to complete its payment, and if it isn't done processing by then, they will sell it at a discount.

If you look at a note at a deep discount and think "Wow, this is too good to be true!" it probably is...
QFT

More knowledge of the system isn't asymmetric.  They can see the same signs the originator of the note can.

yojoakak

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #7 on: December 07, 2012, 10:30:14 AM »
More knowledge of the system isn't asymmetric.  They can see the same signs the originator of the note can.

I didn't think there was but with some of the weird data issues I've seen now I'm not entirely sure the current holder of a note does not have a slight leg up on any potential purchaser.

For example, are we certain that Account Activity does not get updated slightly before the note's Status or Outstanding Principal? Or that one of the download files does not get updated first? Or Accrued Interest in any of the places that it appears does not get updated first?

I haven't spent enough time looking at, and it would probably be a slight advantage at best, but I have to admit it could be possible.
« Last Edit: December 07, 2012, 10:55:39 AM by yojoakak »

SarahV

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #8 on: December 07, 2012, 11:15:31 AM »
Every time I've been keeping an eye on account activity, it has showed up ~8-10 hours after "processing" changes to "completed." That is definitely not going to give a seller any advance notice. The outstanding principal and interest changes at the same time as it changes to "completed." (Except on Folio... but if you click through you'll see the correct numbers.) 

I have no idea when they update the download files, though.

thezinfan

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Re: How to tell if a note for sale on folio is in Grace period?
« Reply #9 on: December 07, 2012, 02:48:18 PM »
FYI, on the cancelled sale due to loan payment. It is typical that the cancellation doesn't show up in your account listing for 3-4 business days. Very frustrating. Best advice is to take a screen shot every day of you folio account screen.