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[Urbi_et_Orbi]

Well, wouldn't that be a sweet way for Prosper to erase the rotten past.  "Send us a dollar and we'll consider the matter closed. We collect a recovery fee to boot and get to wipe your whole default off our books."

Man, I hope that's not true.

[cowdog]

And beyond this, I wonder what, if anything at all, is appearing on such a borrower's CR.

[112233]

this is better than selling to a jdb, no?

[ira01]

this is better than selling to a jdb, no?

No, not really -- because the JDB sales included ALL the defaults, while the settlements involve only a tiny fraction of them.  So while the lenders on the loans lucky enough to get a 20% or whatever settlement do better, all the rest of the lenders get stiffed.  To say nothing of the fact that if Prosper is agreeing to wipe the credit report clean on the settlements, some borrowers who otherwise would have continued to pay as agreed ("strategic defaulters") may opt to pay 20% instead. 

[xraider]

The contract *I* entered into with Prosper requires sales of defaulted loans to junk debt buyers.  Not one of my defaulted loans was sold.  Yet another Prosper breach.

[112233]

this is better than selling to a jdb, no?

No, not really -- because the JDB sales included ALL the defaults, while the settlements involve only a tiny fraction of them.  So while the lenders on the loans lucky enough to get a 20% or whatever settlement do better, all the rest of the lenders get stiffed.  To say nothing of the fact that if Prosper is agreeing to wipe the credit report clean on the settlements, some borrowers who otherwise would have continued to pay as agreed ("strategic defaulters") may opt to pay 20% instead. 

you could do both. of course, you would have to do the settlements before you sell the loans.

[112233]

The contract *I* entered into with Prosper requires sales of defaulted loans to junk debt buyers.  Not one of my defaulted loans was sold.  Yet another Prosper breach.

of course. they should respect their lenders and related contracts but that is another longstanding issue.

[ira01]

this is better than selling to a jdb, no?

No, not really -- because the JDB sales included ALL the defaults, while the settlements involve only a tiny fraction of them.  So while the lenders on the loans lucky enough to get a 20% or whatever settlement do better, all the rest of the lenders get stiffed.  To say nothing of the fact that if Prosper is agreeing to wipe the credit report clean on the settlements, some borrowers who otherwise would have continued to pay as agreed ("strategic defaulters") may opt to pay 20% instead. 

you could do both. of course, you would have to do the settlements before you sell the loans.

The problem with that, of course, is that JDBs would pay a lot less (if anything) for loans where the borrowers already rejected a low settlement offer, because such settlements are how the JDBs make their money.

[Urbi_et_Orbi]

July 29 observation

Charge-offs  $45,581,644 22.60%
9,718 28.43%

Recoveries $1,678,867 0.83%
Net charge-offs  $43,902,778 21.77%

August 12 observation

Charge-offs  $45,774,940 22.62%
9,791 28.50%
Recoveries $1,664,002 0.82% 
$44,110,937 21.79%

A little surprised to see the "recoveries" amount decrease.  Perhaps the deadbeat reversed the payment?   

[christoofar215]

If the borrower cures the default PLUS pays all the interest accrued since the default plus all the late fees, I would be willing to doctor the borrower's credit report and knock off all the lates in exchange.


I'd even tell borrowers I would do this for them.


Gotta put a carrot out there to turn some of these crap ass loans into a profit.

[zzj0770]

Even though I haven't made a loan in almost 30 months, I STILL have new lates and chargeoffs.  MandMBoysFan should charge off tomorrow.  I have another loan with 5 payments to go which will go 30+ late in 2 days. 

[xraider]

Didn't MandM charge off months ago??  I was on that loan.  Another deadbeat who vanished without a word, trading in on the .org love.

[cubbiesnextyr]

Didn't MandM charge off months ago??  I was on that loan.  Another deadbeat who vanished without a word, trading in on the .org love.

My group's only blemish.   

[Urbi_et_Orbi]

Something is going on here... Did millions disappear?

August 12 observation

Charge-offs  $45,774,940 22.62%
9,791 28.50%
Recoveries $1,664,002 0.82% 
$44,110,937 21.79%

August 18, 2010 observation:

Charge-offs  $43,189,136 21.28%
9,811 28.49%

Recoveries $1,858,670 0.92%
Net charge-offs  $41,330,466 20.37%

[112233]

changed the charged off status of some loans to something else?

to repurchased or whatever