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When a RE loan goes bad...

Started by rtysmith, September 20, 2018, 05:36:26 AM

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I have a sizable portfolio with LendingHome (LH), and with so many investments, even though I only invest in A - C, they still occasionally go bad.
The reason I love Hard Money type lending is the asset behind the loan, in this example, I invested $2,500 in an 8.55% loan. In 12 months, it made 6 payments and missed 6 payments, the last payment being from the foreclosure sale. see:

On the $2500 invested, I lost $0.71 in principal and made 307.90 in interest, making my effective APR ~10 (which seems crazy that a loan that fails to perform provides better then one that finished, so if I'm off in my thinking here please let me know).


Curious as to what is the longest term they offer for financing. As when you invest in them what do they offer a buyer ?