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Author Topic: Prosper debt sale crashes and burns  (Read 43310 times)

Xenon481

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Re: Prosper debt sale crashes and burns
« Reply #15 on: May 31, 2008, 07:15:03 am »

Quote
We are working to create a new loan status of “charged off”.

is it safe to assume that this will be quick? prosper is a loan servicing provider so Im sure they had the foresight to know they might need to charge off loans at some point... if they didn t have this planned out when the company was founded, Im sure they took steps to have this in place a few months ago when they realized they werent getting the kinds of bids they wanted and that charging off these loans may be the best course of action.

Riiiiiiiight........

xraider

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Re: Prosper debt sale crashes and burns
« Reply #16 on: May 31, 2008, 08:36:40 am »

How is a charge off acceptable?  What does that get us?  Who's to say that next time Prosper has a debt sale, the results won't be even worse, particularly for the loans that are charged off now?  In another four months (or whenever Prosper is moved to try to sell these things again) what is a debt buyer going to pay for my year plus lates, and MtnChick's 2 year late?
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snake

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Re: Prosper debt sale crashes and burns
« Reply #17 on: May 31, 2008, 09:30:52 am »

prosper should do the right thing and repurchase the loans.

Then it can do what it wants with them.

Otherwise, fulfill the terms of its service agreement.
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DakotahFury

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Re: Prosper debt sale crashes and burns
« Reply #18 on: May 31, 2008, 09:35:41 am »

YGBFSM...
All that will be required to default is to ignore the lame Prosper collections department? Now defaulters won't even have to worry about harassment from JDBs in the foreseeable future? The frequenters of a certain credit-repair website will love this development...
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Staneslav

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Re: Prosper debt sale crashes and burns
« Reply #19 on: May 31, 2008, 09:37:47 am »

a
« Last Edit: December 06, 2017, 02:06:30 pm by Staneslav »
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snake

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Re: Prosper debt sale crashes and burns
« Reply #20 on: May 31, 2008, 09:39:06 am »

YGBFSM...
All that will be required to default is to ignore the lame Prosper collections department? Now defaulters won't even have to worry about harassment from JDBs in the foreseeable future? The frequenters of a certain credit-repair website will love this development...

PMI, which has no experience in the lending industry, is now determined to enter the collections industry.

If they honestly think the paper is worth more than they bid for it, why don't they simply make an offer to purchase the loans back?
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cowdog

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Re: Prosper debt sale crashes and burns
« Reply #21 on: May 31, 2008, 09:47:29 am »

Quote
We believe the prudent course of business is to not sell at this time.  Instead, we are going to consider the loans as charged off, and keep them and continue to try to collect them as charged off debts.  You will continue to own the loans as we apply post charge off collection techniques to these accounts.

HAHA! Prosper r0x0rz!!!

So these "charge offs" won't be reported in the default category... and by creating an entirely new category, they won't even effect the stats for lates!

Bet when they tally their stats, they subtract this category first, effectively hiding even more bad loans in the stats. A "charge off," which is basically the same as a "charge back," at least for most accounting purposes, comes off the gross first and then of course isn't counted with returns, disputes, etc.

Moral: Don't make a deal with the devil and not expect to dance.
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xraider

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Re: Prosper debt sale crashes and burns
« Reply #22 on: May 31, 2008, 09:49:26 am »

My question is, when will there be a prudent time to sell my 9+ loan and MtnChick's record late loan?

The LRA says when a loan goes 121+ days late it will be sold.  It doesn't say that Prosper will try to time the market.
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Mtnchick

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Re: Prosper debt sale crashes and burns
« Reply #23 on: May 31, 2008, 10:35:52 am »

Why anyone is still bidding on loans here is beyond my comprehension. We have been royally screwed without even a kiss.  >:(
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HollowOak

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Re: Prosper debt sale crashes and burns
« Reply #24 on: May 31, 2008, 10:51:10 am »

I need some translation/interpretation help. Perhaps because I'm "old school" and don't fully understand modern "webspeak" (if such a thing exists), but what explanation/illumination is conveyed by Rateladder's response to my blog post?

Quote
Author: RateLadder
Comment:
@HollowOak

Quoting from orginal... "Once bids with unacceptable contract conditions were eliminated the highest bid we received was only 1.5 cents on the dollar."

Isn't that exactly what I asked Doug Fuller to confirm that there has been another precipitous drop in the prices offered between the time that Prosper declined bids at the end of April and now?
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Mtnchick

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Re: Prosper debt sale crashes and burns
« Reply #25 on: May 31, 2008, 11:00:58 am »

I need some translation/interpretation help. Perhaps because I'm "old school" and don't fully understand modern "webspeak" (if such a thing exists), but what explanation/illumination is conveyed by Rateladder's response to my blog post?

Quote
Author: RateLadder
Comment:
@HollowOak

Quoting from orginal... "Once bids with unacceptable contract conditions were eliminated the highest bid we received was only 1.5 cents on the dollar."

Isn't that exactly what I asked Doug Fuller to confirm that there has been another precipitous drop in the prices offered between the time that Prosper declined bids at the end of April and now?

Rateladder is in WAY over his head even attempting to respond to any questions regarding this situation. He needs to realize that before he pushes P-----r even further down the toilet.

2cents
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Flying Missle

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Re: Prosper debt sale crashes and burns
« Reply #26 on: May 31, 2008, 11:03:25 am »

Quote
We are working to create a new loan status of “charged off”.

is it safe to assume that this will be quick? prosper is a loan servicing provider so Im sure they had the foresight to know they might need to charge off loans at some point... if they didn't have this planned out when the company was founded, Im sure they took steps to have this in place a few months ago when they realized they weren't getting the kinds of bids they wanted and that charging off these loans may be the best course of action.
If they're using any type of off the shelf banking Loan Accounting Software, it would be trivially easy to create a new code for "Charged Off" loans and move anything 120+ into it. In fact, I've worked with the 3 big systems (not custom ones by Wells or Citi, etc.) and they all have that category there and you can have the loans automatically go to chargeoff status at a certain number of days.

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Tokyo Joe

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Re: Prosper debt sale crashes and burns
« Reply #27 on: May 31, 2008, 11:07:20 am »

I need some translation/interpretation help. Perhaps because I'm "old school" and don't fully understand modern "webspeak" (if such a thing exists), but what explanation/illumination is conveyed by Rateladder's response to my blog post?

Quote
Author: RateLadder
Comment:
@HollowOak

Quoting from orginal... "Once bids with unacceptable contract conditions were eliminated the highest bid we received was only 1.5 cents on the dollar."

Isn't that exactly what I asked Doug Fuller to confirm that there has been another precipitous drop in the prices offered between the time that Prosper declined bids at the end of April and now?

Maybe he meant to emphasize what I've put in bold?  Suggesting that there were higher bids that had "unacceptable contract conditions"?  Although I can't see for the life of me how RateLadder would be privy to that knowledge...
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HollowOak

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Re: Prosper debt sale crashes and burns
« Reply #28 on: May 31, 2008, 11:14:09 am »

I need some translation/interpretation help. Perhaps because I'm "old school" and don't fully understand modern "webspeak" (if such a thing exists), but what explanation/illumination is conveyed by Rateladder's response to my blog post?

Quote
Author: RateLadder
Comment:
@HollowOak

Quoting from orginal... "Once bids with unacceptable contract conditions were eliminated the highest bid we received was only 1.5 cents on the dollar."

Isn't that exactly what I asked Doug Fuller to confirm that there has been another precipitous drop in the prices offered between the time that Prosper declined bids at the end of April and now?

Maybe he meant to emphasize what I've put in bold?  Suggesting that there were higher bids that had "unacceptable contract conditions"?  Although I can't see for the life of me how RateLadder would be privy to that knowledge...

OK, that would at least make some sense. But isn't that meaningless still? Since Prosper didn't consider the bids with unacceptable conditions, they can't point to those as prices that match the previous prices (where they did not mention screening for unacceptable conditions)?

What we have to compare is the prices Doug Fuller alluded to in the May 2nd blog post and the 1.5 cents on the dollar he mentions in this post.  The way I see it, the latter is substantially (in relative terms) lower than the former (in the case of homeowners, the former would have yielded 4.9 cents on the dollar).
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Urbi_et_Orbi

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Re: Prosper debt sale crashes and burns
« Reply #29 on: May 31, 2008, 11:26:51 am »

What would constitute an "unacceptable condition" - and does Prosper get to unilaterally decide what is acceptable?
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