A loan you’ve invested in is “late” when the borrower’s expected payment is past due. Late payments are given one of three statuses: “Late 30,” “Late 60,” and “Late 90+,” based on how many days the payment is late. For example, a loan with a payment date of October 1st would be considered “Late 30” if payment is not received on or before November 1st.
PeerStreet’s Servicing team and/or the original lender on the loan will reach out directly to the borrower to understand the reason for late payment and how they will resolve the issue.
Additionally, PeerStreet’s third-party sub-servicer sends late notices on a regular cadence beginning at 11 days after the payment was due but not received.
Sometimes borrowers do miss a payment for other reasons. In this case, we contact them immediately to discuss the issue with them. We closely monitor these situations. If the problem is not immediately resolved, PeerStreet will post a notification on the dashboard for all investors in that loan.
See our individual sections for a more in-depth look at our various late stages and how we work to resolve them: Late 30, Late 60, Late 90+.
Late 30
A loan is “Late 30” when payment is one month past due. There are several reasons why a loan might fall into the Late 30 category, including:
- Wrong billing address: Occasionally, PeerStreet’s sub-servicer receives the wrong billing address for the borrower and their payment request invoice is returned by the U.S. Postal Service. This could delay a payment by a couple weeks.
- Servicer setup delay: When PeerStreet purchases a loan, we work with the originating lender to transfer servicing to a preferred PeerStreet sub-servicer. Occasionally, this process is delayed—or the borrower accidentally sends a payment to the wrong entity (e.g., the previous servicing company). This usually gets cleared up by the next payment period.
- Sale or refinance negotiations: The borrower is finalizing the refinance, sale, or payoff of the property.
- Non-payment: The borrower made their payment late, or did not make a payment for some other reason.
Late 30 loans will have status details provided on the Positions dashboard. Additionally, you will see your status updated to “Current” when the payment has been received.
What are the typical time frames for resolution?
- Sub-servicer registration complications: 1 – 15 days
- Sale or refinance negotiations: 1 – 50 days
- Non-payment: varies
Late 60
A loan is “Late 60” when payment is two months past due. Typically, there are two main reasons a loan might be in the “Late 60” category:
- Sale or refinance negotiations: Borrower is finalizing the refinance, sale, or payoff of the associated loan, but it is not yet complete. PeerStreet requires proof of refinancing, sale documentation, and the estimated time frame for resolution of the loan.
- Non-payment: The borrower has not resolved the delinquent amount, despite attempts from our Servicing team and/or the original lender to work out the issue.
- Generally, PeerStreet will start the foreclosure process with a Notice of Default (NOD) or complaint after Late 60.
What are the typical time frames for resolution?
- Sale or refinance negotiations: 1-50 days
- Non-payment: varies
Late 90+
A loan is “Late 90+” when payment is more than three months past due. If the borrower is unable to make the past due payments, workouts with the borrower are considered on a case-by-case basis. Generally, PeerStreet will start the foreclosure process with a Notice of Default (NOD) or Complaint prior to the loan reaching Late 90+.
The PeerStreet Asset Management team proactively communicates with investors by updating the status of their late-paying investments. It is our company policy to not discuss the specifics of borrower negotiations to avoid negatively impacting an open negotiation.
What are the typical time frames for resolution for “Late 90+”?
At anytime after PeerStreet initiates a foreclosure process, but before the actual foreclosure auction, the borrower may bring a loan “current” by paying all past due amounts plus additional default interest (in many cases).
A cure of the loan prior to foreclosure sale is our preferred resolution. Time frames for foreclosures vary widely, depending on whether the state is a judicial foreclosure state or a non-judicial foreclosure state. In judicial states (e.g., New York), the lienholder has to file a lawsuit in court in order to foreclose, which is typically a longer process. In states that allow non-judicial foreclosures (e.g., California), the foreclosure process allows the lienholder to foreclose without going through the court system.
