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Post by gaspilot on Jan 23, 2016 14:08:53 GMT
I have three loans that last made a payment on 17/9/15, 30/6/15 and 5/8/15. At what point are these loans defaulted and at what point does a defaulted loan become a bad debt? This could be my first P2P site to become a negative investment.
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kaya
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Post by kaya on Jan 23, 2016 16:13:47 GMT
No idea. They are much much slower than FC to call it a bad debt. I would love to see Rebs make available, to everyone, a page of ALL loans that are distressed or written off, with full original details and discussion, but in common with FC, they just dissapear from view so that no-one would even know that they exist.
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baldpate
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Post by baldpate on Jan 23, 2016 18:46:42 GMT
I have three loans that last made a payment on 17/9/15, 30/6/15 and 5/8/15. At what point are these loans defaulted and at what point does a defaulted loan become a bad debt? This could be my first P2P site to become a negative investment. I'll quote you from Kylie Greef's presentation at the recent Lenders Evening regarding the grounds for default. I have just completed an inventory of all ReBS loan, past & present, and I have identified a number of loans which are not marked as "Default - Under Enforcement", but which have several of the hallmarks of default according the criteria listed above. The three you mention are among them. "17/9/2015" - the company has been wound up, so the loan meets criterion (d), as well as (a).There may also have been a breach of criterion (c). The fact negotiations are ongoing which MAY result in a full recovery is NOT a good reason to delay declaration of default, IMO. "30/6/15" - the company has been placed in liquidation, the guarantor has been uncooperative, and bankruptcy proceeding are being undertaken. More defaulted than this you cannot get! "5/8/15" - the company has been placed in liquidation, one guarantor is being pursued through bankruptcy, having not made a satisfactory offer, the co-guarantor has not managed to keep to the agreed payment plan (perhaps through no fault of his own). Again, the prospect of recovery through the co-operative guarantor is NOT a good reason to delay default. To be fair, the listed criterion are only grounds for default - ReBS can probably argue they may delay the decration of default if they have good cause (e.g. the company is continuing in business, the borrower is communicative, and there is a good prospect that repayments will be resumed); I would agree that they should have that sort of flexibility. But in all your cases, the business is no more. In such circumstance, I see no justification for delaying default, however good the prospect of recovery. The only reason I can think ReBS would do this is to flatter their default statistics, which have deteriorated sharply over the past 6/7 months.
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baldpate
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Post by baldpate on Jan 23, 2016 19:00:06 GMT
... they just dissapear from view so that no-one would even know that they exist. Not quite true, kaya. To their great credit, ReBS do not attempt to hide past loans - they can (nearly) all be accessed via the site map. I say 'nearly', as there appears to be one A-band loan I can't track down (the Stats say there are 23 but I can only find 22) , but I'm sure that's just a website glitch rather than any attempt at concealment.
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kaya
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Post by kaya on Jan 26, 2016 20:02:37 GMT
What do you mean by the 'site map'? Can full details & discussions be accessed?
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baldpate
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Post by baldpate on Jan 26, 2016 20:18:47 GMT
Scroll to the bottom of any page and you'll see a blue horizontal band. Under the heading 'Useful Info' there's a link to Sitemap. Follow the link, then scroll right down to the end of the resulting page (it's long!) and you'll find links to all the loans. If you are logged-in when you do this, you get full access.
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kaya
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Post by kaya on Jan 27, 2016 20:36:56 GMT
Well I never did know that info was available. It is a treasure house of loans dead, defaulted, and alive! Thanks for the info.
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ablender
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Post by ablender on Jan 28, 2016 9:47:39 GMT
Where in the sitemap do you go?
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kaya
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Post by kaya on Jan 28, 2016 12:33:00 GMT
Just scroll right down to the bottom of the page. Every loan past and present is listed. This info could hardly be called 'advertised', I had no idea it was there. Perhaps Rebs could just create a page for expired loans, and a page for defaulted loans, as well as the Secondary market page. That would be nice.
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kevinkelly
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Post by kevinkelly on Jan 28, 2016 17:22:51 GMT
Just scroll right down to the bottom of the page. Every loan past and present is listed. This info coluld hardly be called 'advertised', I had no idea it was there. Perhaps Rebs could just create a page for expired loans, and a page for defaulted loans, as well as the Secondary market page. That would be nice. How would you expect them to recognise a defaulted loan? After all, Advatec hasn't paid a monthly payment in full for over 14 months, and not a penny in the last 6 months, but is still not listed as default/bad debt.
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kaya
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Post by kaya on Jan 29, 2016 10:00:24 GMT
Well, I meant any loan that is no longer visible on the Secondary Market page - a seperate page for them would be nice. Admittedly, Rebs have a rather more liberal approach towards calling a loan 'defaulted', and perhaps the borrower has to actually be dead before it becomes a 'bad debt'! In contrast, FC is somewhat premature in calling many defaulted loans 'bad debts', when they are far from dead, but I guess that is to help with the recovery process.
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SteveT
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Post by SteveT on Jan 29, 2016 10:21:44 GMT
Well, I meant any loan that is no longer visible on the Secondary Market page - a seperate page for them would be nice. Admittedly, Rebs have a rather more liberal approach towards calling a loan 'defaulted', and perhaps the borrower has to actually be dead before it becomes a 'bad debt'! In contrast, FC is somewhat premature in calling many defaulted loans 'bad debts', when they are far from dead, but I guess that is to help with the recovery process. I'm not convinced death would conclusively lead to default by ReBS. There appears to be a high degree of faith in the potential for resurrection in many loan updates ...
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kaya
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Post by kaya on Jan 29, 2016 10:36:22 GMT
Well if the Lazarus effect doesn't get started soon with some of these chancers, I'll be a stuffed mummy.
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Post by gaspilot on Feb 12, 2016 15:59:33 GMT
So with the latest default added (L******S) today that makes my dashboard look like this: My average return 16.26% gross. My average return -17.97% net.
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ewf
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Post by ewf on Mar 2, 2016 15:44:14 GMT
Has Rebs made any recoveries on any defaulted loans?, if so are they listed anywhere on the Rebs site?
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