Debt sale cancelled? Sucks or what?

[bamalucky]

Debt Sale Update

05/2/08 posted by Doug Fuller

As most lenders’ know, Prosper had been planning to execute a debt sale during the month of April. To this end, a “bid file” was cut on April 11th. This bid file contained all loans that were more than 120 days past due as of that date that did not have a bankruptcy indicator or an open “Promise to Pay”.

In keeping with Prosper’s debt sale process, this file was sent to a list of approved bidders who have expressed interest in buying charged off Prosper debt. In addition, this file was placed with one of the largest debt auction/broker firms in the business. This firm has been in business for more than 15 years and hosts one of the premiere debt sale auction sites. The firm averages five portfolio sales a week – with portfolio sizes ranging from $2.5MM to $500MM.

As a result of these efforts, Prosper received a record number of bids on the sale file (eight). Unfortunately, all of the bids were extremely low. As I mentioned in my last update, the debt market was “flooded” by credit card issuers in March. That backlog has not dissipated.

At this point, we have not accepted a bid to buy the portfolio. We are actively soliciting alternative bids and proposals and are working through the alternatives. We are working to get the best price possible and appreciate your patience in this matter. Without compromising the status of negotiations, we will keep you informed on the process.

—

Doug Fuller is the Vice President of Operations at Prosper.

[bamalucky]

As my fiduciary i want the debt sold to the highest bidder ASAP.

I also want these defaults recorded where they belong on the prosper performance tab so they can stop the insane advertising of low default rates.

[Urbi_et_Orbi]

Perhaps Trav should make another offer?

[iLIE]

This thread is missing a few koolaide drinkers isn't it?

[iLIE]

To quote Shakespeare

The Shit Hath Hitteth the Fan ...

[Mtnchick]

This thread is missing a few koolaide drinkers isn't it?

They believe that P-----r should give the collection agency (whichever one it is this month) all the time in the world to collect on these debts and should postpone debt sales as long as possible. I believe if you read mhs's posts you'll find several where she just didn't understand why we wanted these sold every 120 days like we were told they were going to be. Now, of course, no one wants 7+ month old debt and that's not even the worst of mine. I have one that hasn't paid since Aug 06. But hey, let it sit there. the CA might be able to collect any....day...now....

[iLIE]

We are working to get the best price possible and appreciate your patience in this matter. Without compromising the status of negotiations, we will keep you informed on the process.

WTF is to be gained by being secret? Let everyone know what is offered & someone may offer more..

This is the stupidest shit i have ever read.

ETA: Better yet just sell it to the high bidder & be done with it..

Oh wait I keep forgetting,you guys would have to readjust your advertising then.

[pioneer11]

Ahh kiss my ass, Fuller!

[cowdog]

This is just more BS, to be expected from PMI.

Those loans haven't paid for months and months and months, in some cases a year or MORE.

Lenders aren't looking for money at this point, .08 cents on a dollar isn't going to enrich anyone; no one cares if the sale yields .03 or .08 per original dollar. The whole point of having a debt sale is to close out the loan so it can be a cap loss.

The only thing PMI is accomplishing by not having a debt sale is artificially propping up their default rate, and finding yet one more way to aggravate lenders.

[iLIE]

$6.5 million in bad loans(this sale) is gonna kick the performance tab in the teeth,force bloggers to accept a closer view of reality,make new lenders sit up & notice,force PMI to readjust PP,advertising images,marketing & a whole new line of bullshit from Tiffany to give to the media.

[rilesemo]

$6.5 million in bad loans(this sale) is gonna kick the performance tab in the teeth,force bloggers to accept a closer view of reality,make new lenders sit up & notice,force PMI to readjust PP,advertising images,marketing & a whole new line of bullshit from Tiffany to give to the media.

Who else is excited? 

[iLIE]

I've always said once it's late it's worthless..Not only can you mark it off,you can mark it at no value.

[christoofar215]

This thread is missing a few koolaide drinkers isn't it?

They believe that P-----r should give the collection agency (whichever one it is this month) all the time in the world to collect on these debts and should postpone debt sales as long as possible. I believe if you read mhs's posts you'll find several where she just didn't understand why we wanted these sold every 120 days like we were told they were going to be. Now, of course, no one wants 7+ month old debt and that's not even the worst of mine. I have one that hasn't paid since Aug 06. But hey, let it sit there. the CA might be able to collect any....day...now....

I wonder if the really really really really old lates have closed their bank accounts.   I would do a pull on the entire lot right about now for those who can be pulled before finally giving up.  One last "hurrah" before the last of the Titanic finally goes below the sea?

[iLIE]

Curiously the blog post has no comments.I wonder why?

http://blog.prosper.com/

[mjerryfirst]

If a debt is sold the lenders unfortunate enough to bid on the loan will immediately get a small amount of the funds lent (I suspect 3-15%), and then never get a penny more.    It seems much better for Prosper to sit on these bad loans for at least 2 years, hoping some of the borrowers make a personal financial recovery.     

Eighty to ninety percent of the loans which have gone bad are ones that a prudent lender should not have bid on.