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iLIE
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« Reply #15 on: May 02, 2008, 07:58:24 PM » |
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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.
Mjerry,what are the odds of a prosper borrower winning the lottery & repaying? 15% is too high.The last debt sale didn't bring that much,so this 1 is far lower than that |
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Some people are like slinkys; they really don't have a purpose in life , but they still bring a smile to your face when you push them down the stairs.
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pioneer11
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« Reply #16 on: May 02, 2008, 08:04:50 PM » |
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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.
BULLSHIT! |
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"Although we refer to you and other individuals as 'lenders', the loans are being made by Prosper and then sold to you, making you a loan purchaser. The term "lender" is used through the site for the sake of simplicity."  |
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iLIE
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« Reply #17 on: May 02, 2008, 08:08:59 PM » |
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I bet Junk Debt Buyers are registering for prosper loans as you read this.
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Some people are like slinkys; they really don't have a purpose in life , but they still bring a smile to your face when you push them down the stairs.
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pioneer11
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« Reply #18 on: May 02, 2008, 08:18:58 PM » |
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I bet Junk Debt Buyers are registering for prosper loans as you read this.
I think I get it...get a Prosper loan...default...buy it back for pennies...brilliant! |
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"Although we refer to you and other individuals as 'lenders', the loans are being made by Prosper and then sold to you, making you a loan purchaser. The term "lender" is used through the site for the sake of simplicity." |
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j9359
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« Reply #19 on: May 02, 2008, 08:20:56 PM » |
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I think I get it...get a Prosper loan...default...buy it back for pennies...brilliant!
This would explain why the secondary market has (or will) never happen. john. |
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iLIE
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« Reply #20 on: May 02, 2008, 08:22:11 PM » |
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I think I get it...get a Prosper loan...default...buy it back for pennies...brilliant!
This would explain why the secondary market has (or will) never happen. john. This should wake a few primary market lenders up.I doubt it though.They all think they can outpick all the other people who have defaults,so it won't affect them. |
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Some people are like slinkys; they really don't have a purpose in life , but they still bring a smile to your face when you push them down the stairs.
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rilesemo
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« Reply #21 on: May 02, 2008, 08:42:19 PM » |
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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.
I smell some thing burning... |
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<ryan_b> nora stop pming me about a webcam gah!
<Nora> well ryan, it takes so long to download all the pictures you send me
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warhola
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« Reply #22 on: May 02, 2008, 08:50:00 PM » |
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I have one that hasn't paid since Aug 06. Hey - that loan might have a special flag  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” |
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Mtnchick
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« Reply #23 on: May 02, 2008, 09:12:39 PM » |
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I have one that hasn't paid since Aug 06. Hey - that loan might have a special flag 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” They've been promising to pay for a LONG time - maybe someone should pick up on the fact that they obviously aren't honoring their promises  Eighty to ninety percent of the loans which have gone bad are ones that a prudent lender should not have bid on.
So these 80-90% are all going to win the lottery and pay off their loans? Nope - you ARE correct that they are bad loans. Which is why they should be sold ASAP. The longer they sit, the less they're worth. Why can't people understand that?? |
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"lol. Go no further than my myspace or facebook to see proof of my "lack" of real life friends." BFS/JZ//plaquenasty/abcdefg/Whatever
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Cushie
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« Reply #24 on: May 02, 2008, 09:38:13 PM » |
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Why, I wonder aloud, if PMI can't even get a decent price for these at auction doesn't PMI start suing each and every one of the borrowers? Or encourage lenders to form an unauthorized JDB company and buy the loans? Or do something productive?
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iLIE
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« Reply #25 on: May 02, 2008, 09:39:56 PM » |
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Why, I wonder aloud, if PMI can't even get a decent price for these at auction doesn't PMI start suing each and every one of the borrowers? Or encourage lenders to form an unauthorized JDB company and buy the loans? Or do something productive?
If PMI sells the loans they will have to put 6.5 million of defaults on the performance tab. That is more than all the other defaults combined. |
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Some people are like slinkys; they really don't have a purpose in life , but they still bring a smile to your face when you push them down the stairs.
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Cushie
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« Reply #26 on: May 02, 2008, 09:42:30 PM » |
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Why, I wonder aloud, if PMI can't even get a decent price for these at auction doesn't PMI start suing each and every one of the borrowers? Or encourage lenders to form an unauthorized JDB company and buy the loans? Or do something productive?
If PMI sells the loans they will have to put 6.5 million of defaults on the performance tab. That is more than all the other defaults combined. True, hadn't thought about that. And I like your quote. No 's on slinky, though. (I am NOT bashing you) |
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iLIE
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« Reply #27 on: May 02, 2008, 09:45:14 PM » |
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I borrowed the siggy & pasted it as is..I'll fix it now
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Some people are like slinkys; they really don't have a purpose in life , but they still bring a smile to your face when you push them down the stairs.
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onthefence
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« Reply #28 on: May 03, 2008, 12:09:37 AM » |
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Interesting.
Either the credit market's tanking really are having a significant effect on the resale value (in which case they should not have held off on quarterly sales). Or iLie's statement that the longer these loans stay delinquent the less they are worth on the resale market is extremely accurate.
You would think that if the prior defaulted loans were of value, the prior purchasers would be jumping at these loans. But they aren't. Prosper said they received a record number of bids for the portfolio, but they are too low due to market conditions.
Honestly, if the credit markets are so bad, sitting on these loans are not going to increase the loan value in any reasonable amount of time. If I am wrong about this, please, somebody point this out to me. Otherwise, I would think Doug Fuller knows this & lend credence to the speculation that prosper is sitting on these loans so that their performance metrics don't tank.
+2 points to Doug Fuller for at least being responsive & telling us what is going on.
Prosper.com as a whole? I'm glad I chose stocks.
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ira01
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« Reply #29 on: May 03, 2008, 12:14:45 AM » |
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I have one that hasn't paid since Aug 06. Hey - that loan might have a special flag 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” Somebody who Fuller actually responds to (Fred93, xraider?) should email him and ask for clarification of exactly what counts as an "open Promise to Pay" such that it suspends a loan from being sold to the JDB. Although (as I've posted before) in theory I like the idea of Prosper not blindly selling off every loan that is 120 days late at the JDB sale cutoff date (for example, a loan that has made a fairly recent, fairly substantial payment), in practice, Prosper is so inept and unethical, that I don't trust them to make decisions in the lenders' best interests about which loans should be sold off. |
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