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[Mtnchick]

Going through my 4+ month lates I have:

1 that hasn't made a payment since Aug 06
1 that hasn't made a payment since Mar 07
1 that hasn't made a payment since July 07
2 that haven't made a payment since Aug 07
3 that haven't made a payment since Sept 07
3 that haven't made a payment since Oct 07 (and one was partial)

Is it really a surprise that no one wants to buy such stale crap? I also feel that as lenders, we should see the verification performed on defaulted loans. Personally I think full verification should be done on ALL loans, but the ones that default are especially suspect.

[Nora_Lenderbee]

It certainly didn't help, but I think Prosper debt is pretty unwanted anyway. Even the fresher stuff.

It's plausible to me that the JDBs would rather deal with bigger numbers from places like Capital One than piddly little (and stale) sh*t from Prosper.

[iLIE]

It certainly didn't help, but I think Prosper debt is pretty unwanted anyway. Even the fresher stuff.

It's plausible to me that the JDBs would rather deal with bigger numbers from places like Capital One than piddly little (and stale) sh*t from Prosper.

6.5 million seems like a pretty big number to me.

[ira01]

It certainly didn't help, but I think Prosper debt is pretty unwanted anyway. Even the fresher stuff.

It's plausible to me that the JDBs would rather deal with bigger numbers from places like Capital One than piddly little (and stale) sh*t from Prosper.

I don't really see this.  Prosper currently has 1,179 Late-4 loans, worth $6.55M.  That's an average of $5,559 per loan.  And that's just the "current principal balance" -- but the JDB gets the right to the accrued but unpaid interest as well.  If these loans average 6 months late and 20% interest, on average they each have about $555 of accrued interest.  So each loan, on average, is worth about $6,100.  That's hardly "piddly."  I don't know what the average credit card balance of an account in default is, but I imagine it is of a pretty similar size. 

I also don't know how long credit card companies work their collections accounts before selling them off to a JDB, but I doubt it is less than 3-4 months.  So the Prosper loans probably aren't much more stale than the Capital One accounts either.  While Capital One no doubt sells its defaulted accounts off in larger batches than Prosper, who cares?  How is a JDB going to work 10,000 (or 50,000) accounts (from Cap One) any differently than 1,000 accounts (from Prosper)?

[Beachey]

<poof>

[ira01]

I wonder what kind of recovery occurred on the the previously sold Prosper Junk Debt?

I think Prosper has some aggregate stats on this on their site.  In addition, there is a thread here somewhere by Leporello in which lenders posted the information on their defaulted loans from past sales, which Lep entered into an Excel spreadsheet showing the stats in loan-level detail, separated by credit grade and by homeownership staus (which used to affect JDB prices until the last debt sale).  That spreadsheet is posted here too.

[Urbi_et_Orbi]

Perhaps Prosper loans do not fit the JDB's portfolio plan? 

[Beachey]

<poof>

[ira01]

I did a quick search in the private boards and I saw three loans that were sold for about 2.5%.

The JDB sale price varied substantially based upon credit grade (and in sales prior to the December one, by homeownership status).  IIRC, the overall JDB price in December was about 10%.  It was higher in past sales.  Some individual loans (AA homeowners) sold for as much as about 27% in the early sales. 

[j9359]

The JDB sale price varied substantially based upon credit grade (and in sales prior to the December one, by homeownership status).  IIRC, the overall JDB price in December was about 10%.  It was higher in past sales.  Some individual loans (AA homeowners) sold for as much as about 27% in the early sales. 

But the world today is awash with bad debt and holding out for a better offer seems foolish as the prices are as likely to go down as up.  I imagine if Prosper waits awhile the best offer might be: "you'll have to pay me to take that junk"
john.

[Mtnchick]

I will be more than happy to offer to buy all the 120+ debts in GA for 1 penny per dollar over the highest JDB offer.

[iLIE]

I will be more than happy to offer to buy all the 120+ debts in GA for 1 penny per dollar over the highest JDB offer.

So,your offer is 1c per dollar 

[Mtnchick]

I will be more than happy to offer to buy all the 120+ debts in GA for 1 penny per dollar over the highest JDB offer.

So,your offer is 1c per dollar 

IF you believe what DoFu is saying If the prices are so low, it's because P-----r's been sitting on the loans too long - but of course, that's why I started this thread

[ira01]

I will be more than happy to offer to buy all the 120+ debts in GA for 1 penny per dollar over the highest JDB offer.

So,your offer is 1c per dollar 

IF you believe what DoFu is saying If the prices are so low, it's because P-----r's been sitting on the loans too long - but of course, that's why I started this thread

I can't believe how much I've been sticking up for Prosper today -- MHS must have slipped me some Kool-Aid!    Prosper is "only" 1 month late holding the debt sale, which wasn't due under their quarterly schedule until the very end of March.  I doubt the prices dropped dramatically in the last month.  I realize that there were a few loans that Prosper should have sold off in the last debt sale but didn't, but I don't think there were a whole lot of those.  So it really isn't accurate to state that "If the prices are so low, it's because P-----r's been sitting on the loans too long."  I imagine the prices are low mostly due to general economic conditions, including the credit crunch and especially the sub-prime mess.  In addition, I imagine that the past JDB's did not have great success with their Prosper purchases, or I assume they would be back for more.  And, I imagine that Prosper does not do an especially good job of getting the word out widely to possible JDB's (I base this on Prosper's general lack of competence). 

[Mtnchick]

I will be more than happy to offer to buy all the 120+ debts in GA for 1 penny per dollar over the highest JDB offer.

So,your offer is 1c per dollar 

IF you believe what DoFu is saying If the prices are so low, it's because P-----r's been sitting on the loans too long - but of course, that's why I started this thread

I can't believe how much I've been sticking up for Prosper today -- MHS must have slipped me some Kool-Aid!    Prosper is "only" 1 month late holding the debt sale, which wasn't due under their quarterly schedule until the very end of March.  I doubt the prices dropped dramatically in the last month.  I realize that there were a few loans that Prosper should have sold off in the last debt sale but didn't, but I don't think there were a whole lot of those.  So it really isn't accurate to state that "If the prices are so low, it's because P-----r's been sitting on the loans too long."  I imagine the prices are low mostly due to general economic conditions, including the credit crunch and especially the sub-prime mess.  In addition, I imagine that the past JDB's did not have great success with their Prosper purchases, or I assume they would be back for more.  And, I imagine that Prosper does not do an especially good job of getting the word out widely to possible JDB's (I base this on Prosper's general lack of competence). 

BUT they said they had 8 offers including one from "one of the largest debt auction/broker firms in the business.". And from what I can tell (which could be wrong) they aren't taking them. Therefore making the loans less attractive every day. And again, I'll take ANYTHING. I have given you my price as a whore - just get them off the damn books

IMO, as they sit there and look even more desperate, those 8 who have already made offers won't think twice before lowering the next offer - especially since supposedly it's been almost a month since they made those offers. I honestly can't see why DoFu thinks that he's going to get better offers while the loans fester since as you stated, the credit crunch is getting worse, not better.

And the kicker is, we will never know. If and when there's a debt sale, we will never know what these original 8 offered.