My overall return was hit when my bad loans went to “default” status. Both are now charged off.
If this one goes bad I am gonna go puppy kicking mad…
a $12K A4 with a 714-749 FICO CC refi, post office employee, just failed its second payment FICO has plummeted over the last couple months to 550.
They made 6 payments… Where my golf club, I’m gonna go stewie on his ass…
Ouch on the A-grade loan going bad - goes to show stuffcan happen to anyone.
My payment plan / bankruptcy loan hasn’t paid since July 28th. This month’s payment will be the 4th missed payment. I assume at that point it goes into default.
They filed Chapter 7 about 3 weeks ago. If I understand things correctly, that works by basically liquidating everything they own except for things like house and car, and using whatever that brings to make partial payments on the existing debts. Am I correct in also assuming that a secured debt would be satisfied by reposessing the security (e.g. second car, furniture bought “on time”), with the balance being thrown into the “unsecured debt” pool with other loans?
To add insult to injury, I just cracked 6%
Ouch :(.
I’m at 8.80, but mine will drop shortly. At least I’m only out about 14 dollars (plus the 55 cents in accrued interest - I wonder if that is factored into the returns or if they only count actual money received).
From my account figures, it looks as if they do not count accrued interest when calculating the return.
My account has finally got back to even (making 0.06%) on the same day that another loan went into default. Hence when that one gets charged off, I will be negative again. Still, at the moment no other loans are late.
I’m still at 9%, like I always have been, but I stopped investing in new loans last year. So far, I’ve had 75 pay off full and 18 in various stages of defaulting. So about 20% are going bad. I’m starting to worry about getting all my money back out of this venture.
I’m interested in starting an account at Lending Club as a lender. Can someone give me a referral? Post in here and I’ll pm you or you can pm me directly. I don’t know if you need a email or simply a name or what. I’m still making my way through the whole thread so I should respond quickly.
I am starting to think the people behind Lending Club are clueless at times.
I changed the account I was using for withdrawals. Although the email they sent me listed it coming from the new account and it showed me as paid I never saw a withdrawal. I checked my old account and nope no withdrawal there. So I sent an email and received an automated reply back that was no help.
So then I called them and the person I spoke to said I needed to re-authorize the new account and according to their records they tried to pull the old bank but failed. However it was still showing as paid when I spoke to them.
I was told in 5 days it would try to re-pull and go though. I asked about being marked late and was told not to worry because It was still in the grace period.
Well now it’s 20 days from the date it was due. I still show as paid but nothing came from my accounts! I can’t wait to see what happens December 4th
I’m still doing okay. I currently have 48 loans. I would have had 50, but one paid off early and one (Wedding expenses) defaulted.
I’m being very careful at this point. I’ve read about a lot of defaults recently.
All my three defaults have been wedding loans. It makes me wonder if there are fraudsters choosing to specify wedding loans as they have traditionally had low default rates and therefore attract lenders. Two of my three never made a single payment. Two of the three borrowers cannot be traced.
Interesting - could be!
One thing I’ve noticed: almost no notes these days are 36 month loans. The vast majority are 60 month. Of the A/B/C/D loans with verified income (my bare minimum for even LOOKING at them), there are 118 loans; only 30 of those are 36 month.
Speaking of criteria, what sort of stuff do you guys look for? Mine:
- Verified income
- Rate A through D (mostly B / C; some A but the return averages fairly low).
- Must enter a description.
- Payment 10% of income or less (rarely I’ll take one where it’s a little bit higher)
- Has to make sense - I’ve seen loans where they’re “consolidating”, and the rate on the loan is HIGHER than the debts they’re consolidating. Yeah, one payment, might even be a little less, but they’d be paying a LOT more overall.
- Avoid wedding loans and vacation loans (personal prejudice)
- Avoid medical loans (bad track record)
- Lower loan amount likelier to catch my eye than higher loan amount
After that I go with my gut feeling on a lot of them.
I think you need to get an email with a link. What is annoying is that the last time I looked, the referral bonus was only good if you invested a fairly large chunk up front, boo.
Oh - and “wedding loans going bad”: I just looked at one of the very few I funded (possibly the only one)… and it plummeted FIVE SLOTS this month. From the 679-713 FICO range to the 550-599 slot. Ouch.
By contrast, another B4 of fairly similar age, made the same plummet 3 months ago, but has continued paying and is in good standing.
Mine:
- Verified income. Minimum $4,000/month.
- Rate A through E.
- Review status approved by LC.
- Debt to income ratio of 15% or less.
- Minimum employment of one year.
- Maximum loan of $20k (but also see if makes sense, e.g. $20k is too much for a dream vacation), and prefer lower.
- Purpose: debt consolidation, refinancing cc debt, home improvement, renewable energy, wedding, dream vacation.
- 36 months
So, folks, use those wise criteria and you too can get -4% on your investment…
Me? I’ll never fund another wedding. And I think anyone who takes out a loan for vacation expenses has their priorities out of whack, so I’d never fund a vacation loan either.
I’ll pretty much do debt consolidations and home improvements. I sometimes get tempted to fund a business venture, but I just can’t wrap my mind around the idea that, say, $11,000 is a make or break amount for a new business.
I fund loans that have B, C, and D ratings. Because I’m on the trading platform and can’t fund new loans, I will purchase a note only if there has never been a late payment and there have been at least 5 payments.
I felt similarly about vacations, but at the time (March 2011) there were statistics showing that this type of loan had a better than average payback. However, I have just checked and “vacation” has slumped to the lowest, so I have just eliminated that from my criteria. “Wedding” has been falling, but is still above average. Interestingly, the highest return over the last 12 months has been “Business”, which was previously one of the lowest.
I missed this before. 18 loans is 20% of your inventory, so you have 90ish loans outstanding right now?
Are you re-investing proceeds as they pay back - i.e. not adding new money beyond that, or are you harvesting the proceeds as they come in?
Do you see any patterns in the loans that are misbehaving?
Random thought…has anyone ever recieved late fees? I know plenty of my loans have had late months, just wondering why I never see my few pennies…