I am assuming you mean it sold but has not yet settled. The trade will be cancelled. 99% chance of it anyway. If it sold yesterday then it’ll be cancelled in about an hour from now. Or it you sold it today you’ll likely get it back tomorrow.
They also added a check if you’re selling something very discounted - which would have stopped me from those two accidental sales last year. You can still list them, but you get a warning popup.
I’ve got one loan that’s 31-120 days late, and last payment was in August, and the credit score is still up from when the loan was made. Not by much, mind you, but still. WTF? Its principal is 23-24 dollars and I just listed it for 2. We’ll see what happens.
Another one just went into grace period. No collections activity listed yet. I listed that at a small discount.
Dead on, Core! And, I have it back on the trading platform. Along with 5 others. What is with the uptick in late payments? The good news is I did actually sell one!
I just sold one today - 31-120 days late. They missed the 9/24 payment, and the log shows that an agency was engaged 10/16. The 10/24 payment was “processing” - should have completed yesterday. Now it’s showing the next payment 11/24, nothing about the payment that should have completed. I listed it for 2 dollars. Since the principal was 24.47 I took a bath on it, but at least there’s no need to handle recoveries, accounting-wise. Credit rating is still up: it was 685-689 when it was issued, then got as high as 715, and dropped back down to 710 as of this month. I guess the late payment hadn’t hit their credit score yet.
The other loan that’s going south was due 10/20. Right now it shows a payment (of double the normal monthly) due 11/20. No collections activity posted yet. The other one (that just sold) showed collections activity within 3 days of the payment due date.
Here’s a new and unwelcome twist: If a loan has a payment processing, you can’t even LIST it on FolioFn.
I have one that may be about to go late and thought I’d list it at a small discount. Can’t select it. Nor can I select ones with due dates any time this week.
So it looks like if something IS going south, you can’t touch it until the payment has actually failed. Or even if it’s doing fine and you just want to divest for whatever reason.
Now, anything with “processing” stands a fair chance of being busted if the payment comes in once it’s marked for sale. But there are lots of legitimate reasons why someone might wish to sell a loan.
This effectively eliminates the ability to sell roughly 20% of a portfolio at any given time - with it taking 4 business days to complete a payment and 20 business days per month.
Yeah this change was made exactly 1 week ago when they rolled out the new search filters on Folio and added the new downloadable dump. This latest change absolutely bites. It’s way more than 20% of the month because unsettled sales are busted once processing starts. As of yesterday (Tues) they hadn’t even finished settling trades that happened on Saturday. I have already heard from a fair amount of people who are planning on liquidating and getting out because of this.
Stupid question: When I sell a note on folio, where can I see the money transferred to my LC account? I don’t see it listed under “Account Activity”. I can see the transfers in previous monthly statements but I cannot figure out how to view them from the current month.
I also try to sell notes for a slight discount before they go into Grace period and they are getting busted. Not happy with this.
If you go to the Folio ‘my account’ page and pull up your last month’s trading statement you can fiddle with the URL (or maybe the dates in the selection boxes) and get it to show you current activity. I’ve not looked for anything similar on the LC side of the site… I just usually trust that the money is going where it should since my numbers seem to balance out after everything settles.
And that is precisely why they made this change. Enough cry babies were getting stuck with grace period notes and calling asking for reversals or just generally complaining about how someone was taking advantage of them. Holding a gun to their head forcing them to click the buy button I guess. These people wouldn’t last one hour on a trading floor. It’s Wall Street, not Sesame Street.
I figured out how to view them on the Folio side messing with the URL (just change the date string) but I still cannot figure out how on the LC side. Oh well, just thought it odd.
That does suck that I cannot sell notes while they are in payment processing. I’m guessing more people have gotten good deals from my sales since most eventually do pay rather than those that go into default. And that info on payment status and history is there. Grrr.
The new folio policy sucks! Out of 103 notes, I cannot currently list 32 of them. Over 30%. And, there are a bunch that I could list but will get pulled very shortly when they change to “processing” which I’ve found means very little. Grrrr.
On an different (older) topic: wowsers, notes are selling fast. I had 50 dollars to invest this morning. I’d logged in, and was just waiting for it to turn 9 AM (6 AM in California), and pounced the minute they released new notes.
In the time it took me to glance at a note and decided I wanted to invest, it went from 50% to 100% invested (and it had been just released 2 minutes before).
Oh yeah, and the note I’d mentioned a few weeks ago as going south fast sold for 2 dollars (out of 24.50 in principal remaining). Almost exactly wiping out my interest income for last month (which had finally bounced back from several months of churning loans that didn’t look good for whatever reason). Oh well. I’m glad to have gotten the 2 dollars, as apparently they have STILL not paid.
I’m pretty sure they haven’t done anything about the shopping cart loophole, so you can probably still use that: When the new notes pop up you add all of them to your ‘cart’ (before even looking at them) which locks them up and then you take your time examining them and throw back the ones you don’t want.
On a pleasant note, I’m glad they finally got around to updating the horrifically deficient and frustrating search function on Foliofn.
Here’s a different concern:
Anyone know whether loans are ever made to corporations etc.? I’m assuming the answer is no. The topic came up tonight as a result of an administrative question at work (CPA firm, can’t be invested in any client of the company).
I have decided to stop my monthly contribution to my LC account. I can no longer get rid of loans before they go into the grace period as I used to (you would have 1-2 days before “Grace period” showed up and you could almost always get rid of those for a slight discount). Because of this, I now have two loans 31-120 days late and another long into the grace period. Not being able to list them while they are “processing” has killed it for me. I used to spend a bit of time each morning reviewing the notes that were due soon. Now, it’s pointless…you can’t act on any of it. Just hope they become good again and then try to sell them later once they already have that grace period notice on them.
While I know I probably sold some that others had to eat, I bet a lot of them ended up coming back into good graces and making people money. It’s not like the NYSE has warnings saying “maybe you shouldn’t buy this stock…you could lose money on it. As a matter of fact, we aren’t going to let you. Leave this trading stuff to the big boys”.
I actually sold the one that is long into the grace period for a good sized discount. Pretty good gamble since it is about into the 30-120 days late category and I’m not sure it’s coming back.
And another into the grace period. This one is different though: It has “On Payment Plan”. Any idea what this means?
Well, since the other avenues didn’t pan out, I finally put a bit of money into Kiva, just to see how it goes. The loans were only $25, and I’ve gotten one payment on a loan already.
It’s been quiet in here for a while, so I thought I’d post recent experiences. I am much more of a passive investor than some others who post here. One useful development has been that LC lowered the requirement for a Prime account to $10,000, which means I now qualify and I have converted to this.
In a Prime account I set a profile for loans I want to invest in and a desired overall mix of loan grades and LC automatically puts in orders to match when I have spare cash. I get an email every day of two detailing the order just placed.
One interesting benefit is that it has made is easier for me to get C and D loans. When I was trying to invest a lump sum last year, I commented on how I only seemed to be offered B loans (I don’t invest in A), even though I wanted a mix of B to E. I wondered if the C - E loans were being snapped up by someone else before I could get to them. That appears to be true. I set my desired mix of loan grades in Prime and it is automatically investing in a way to get to my goal. Almost all the ones it has bought for me are C and D as it tries to make up for the fact that I am underweight on those. Still precious few E loans though.
There have also been a couple of changes in the way LC presents the return - they were criticized by Allan Roth for not taking delinquent loans into account. The first change was to eliminate accrued interest from the calculation. Now they provide an option whereby you can exclude a portion of delinquent returns from your returns. They offer a default set of percentages to use to exclude the loans according to the stage of delinquency, or you can set your own.
I use the default percentages and it lowers my annualized return from 9.5% to 8.34%
Ugh - tax time. Brutal with folio sales. There must be an easier way. I’ll have to go through and read the info from last year. I can’t have to enter all of these :eek: