Delinquent.....and then?

[Guest]

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[o]

Hey folks!

What does usually happen after a loan is marked delinquent?
How long does it usually take (months, a year?) until further action?
Is it normal not to receive any updates from the field partner or Kiva?

Thanks in advance!

[Phoenix42]

I've had several loans be delinquent at some point, in fact right now 8 out of 56 of my active loans are delinquent, but so far out of 140 loans I've only had one default.

I do believe that for a load to go from delinquent to default, it does take some time, I want to say at least until the end of the loan, if not longer. But I don't recall when my sole default was so declared.

[cpbailey]

Generally, loans are not declared defaulted until 6 months after the last payment is due.  If it is a field partner issue, then there may be a blanket approach that differs for all loans.  I had one loan which defaulted without any reason or warning, long before the last payment was due.  The borrower had passed away, so that was sad and understandable. 

Generally, I look at the details of repayments.  Sometimes a loan is short pennies on a repayment every month.  Sometimes a borrower makes double payments every other month.  Sometimes there are weekly repayments, and only 4 out of the 5 payments are made (perhaps a holiday on the last one).  Many of the delinquent loans will catch up on the 15th of the month.

Colette

[o]

Thank you for your input Phoenix42 an Colette!

This particular loan was a one payment "at end of term" kind of loan. The payment was due more than 6 month ago and was way short. Nothing since. I sure hope the borrower is well and happy and actually don't expect anything more to be repaid. I would just like to see the matter "closed" somehow.