Prosper.com first BK on my loans.

[Moosie]

Got one account with a Bankruptcy next to the account today it looks like. It will go into "Hold" status :

http://www.prosper.com/policies/borrowers-bankruptcy.aspx

This means that when a borrower files for bankruptcy, the account is in a holding pattern until the bankrtupcy court determines how the Prosper loan is to be treated in the bankruptcy. If no further payments are to be made, Prosper will put the loan in a default status. If a payment plan is established which calls for monthly payments toward the loan, Prosper will forward plan payments as they are received to the Prosper lenders. In either case, Prosper lenders will receive the maximum possible amount recoverable on the loan. Loans that are in bankruptcy will not be sold in a debt sale.

Lend $50, he made one payment of "$1.86" last month ($1.01 Princ./$0.85 interest) and thats all she wrote it looks like

So... From my numbers, I guess I can Subtract $48.14 as a loss It doesn't show up as a Default untill the courts are done though I think.

Here's my "public" stats : http://www.lendingstats.com/lenders/MoosieID

And from my account :

Active loans:97
Payment status:97 Current (YAh, minus the BK )


Principal loaned:$9,438.90
Payments received: $578.25
Principal received:$392.56
Interest received:$194.96
Servicing fees paid:-$9.27


Value of loans: $9,107.95
Principal outstanding:$9,046.34
Interest accrued:$61.61
Late fees accrued: $0.00

Avg. interest rate:19.05%
Daily interest accrual:$4.72

AHHH I new it was comin' I guess. Couple more months to paint a better picture (Or worse picture )

 

[IDHunt'em]

So does your 19% + interest rate include the BK?

 

[IDHunters]

Hmm, I wonder how an unsecured personal loan will be treated in BK?

Gotta pay to play right?

 

[JB]

Dude, you'd make more money and have less risk playing Bingo with the Blue'd Hairs.

 

[Moosie]

HAHA. No it doesn't take that into account yet. It will when it goes through the proccess. I do have my 2nd Payoff in progress right now though. I'm guessing Losing $50 out of 9k won't affect the Numbers to greatly. I will have them calculated out.

My average was over 20% but I recently made a $1600 investment with a friend at a lower rate to lower my over all return. I recieve $141 a month in interest with the monies that are in there now. Losing $48 this month is a chunk but even losing $48 each month this year I would still be getting 12.26% return (Plus/Minus). That is Still way Killing my stock portfolio Now.. If I start losing more that's not so goooood !

JB, you don't make 19% playing bingo with Bluehairs

 

[Steiny]

Playing bingo with the blue hairs might not pay as much, but working a couple hours on a second job evenings at the quickee mart would blow it away.

I know you have fun with all of this investment stuff and crunching the numbers Moosie, but why not just bust azz at your job and make a bunch of money, or get a job that affords you that opportunity such as commissioned sales? Are you really after money, or do you just like doing your own thing?

 

[Moosie]

Well.... I'm not sure what I'm after I do like doing my own thing, thats for sure. You do know, Steiny, that I left Engineering and got into Home loans right ? Not the smartest thing some would say in this market but it's not the dumbest thing I've done (I don't think)

I don't see how you can make more at Quicky mart ? Plus, At Quicky mart you need to work for your money. If it was about "Making money by working) I would say putting more time i nthe office is the right thing. But Time isn't on my side. I've blurted many a times all my activities, no one wants to hear them again

We're talking investments here, not working for Coin. Taking already earned money and investing it, or taking leveraged money I know how to work for it, I'm looking for investment areas to sink money into. I'm in no way against my choice of picking Prosper. It's doing about 30% better then my Fugging Stocks

If that is my Only Default loan, I'm still banking 18.44% return on my money. Although It's not Realestate good, It's not Chitty. If it's a Chitty return, Please tell me why cuz I don't see it ?!?!

I hit my $200 goal sooner then I thought !
Interest received as of today:$215.07

 

[JoseCuervo]

If that is my Only Default loan, I'm still banking 18.44% return on my money. Although It's not Realestate good, It's not Chitty. If it's a Chitty return, Please tell me why cuz I don't see it ?!?!

Dude,
"RealEstate good" ain't happening.... All markets have "manias" and "bubbles", from tulip bulbs in the 1700's to the Dot.Com stocks of 99-2000..... Realestate just went thru a bubble and now there are LOTS of investors who are doing just like your Prosper dude, and filing Bankruptcy.

Have you been out to Hunter's Point lately? Do you think they are enjoying "Real estate good"?

 

[Moosie]

I enjoyed and am still enjoying Realestate good, Amigo

 

[Moosie]

HUMMMmmm I jsut gotthis Message today in my Prosper Inbox :

Subject: please read
Hello. My name is Stephen O'Neal. You may have recently received a notice that I have filed for bankruptcy. I am writing each and every one of you to let you know that I AM going to continue to pay on this loan.

You guys trusted me and I would not feel right to not pay it back. As far as I know, prosper is still going to debit the money from my account. If not, I will be sure to make the payment myself.

Once again, I WILL CONTINUE TO PAY my prosper loan until it is paid in full!

Thanks for putting your trust in me. I will not let you down.

Sincerely,
Stephen
Listing #282846

 

[jabber]

Sounds like the checks in the mail

 

[Moosie]

Yahhh.. really. We'll see. At least he "Says" he feels bad I wrote back to him thanking him for the info. Let him know I appreciate him trying to do the right thing by paying us hard working average Joe's back. I think he feels bad that we are "people" and the other guys are "banks" they can afford to go default on. Thats the Mentality I'm banking on

 

[Moosie]

He just instigated a Monthly Payment and is caught up to date ....

HE wrote me and said (I bolded the part I thought was interesting) :

I appreciate your response. My situation is a nasty one. Basically I, like many Americans, have been living paycheck to paycheck for a long time and accrued a lot of debt for someone my age. I got this prosper loan with the intention of paying off all of the high interest credit cards and making them into one manageable payment. Well, it just so happened that the day my loan went into my bank account, I learned that my job was cutting back big time. While I didn't get laid off, they took me from over 40 hours to about 20 hours a week. So, basically I had to keep my prosper loan just so I could live and pay for the necessities. After this, I began to fall behind on my payments to and began to feel a lot of stress through creditors. I met with a lot of people and decided to file chapter 13 bankruptcy, mainly because I was young and the amount of debt I had would take me decades to pay off, especially once I began to fall behind on them. I talked to several people who have filed in the past, and their situation has never been better. This will allow me to get out of debt and payback creditors as much as I can with minimal stress because the court and lawyer is handling everything.

I'm making it a priority to pay back my prosper loan because I feel if I wasn't to pay it back, I basically would be stealing from several people who put their trust in me, and I couldn't live with that over my shoulders.

I really appreciate your offer for help, but at this time everything is taken care of. I'm working on getting another job and should have one soon. Luckily I have family that's helping me as much as they can.

Ill keep you updated on my situation. Thanks again for everything. This was not expected by any means but like I always say, everything happens for a reason!

Thanks,
Steve

He borrowed :

$3,001.00 @ 20.00%
Bid down from 34.97%
(Bidding has ended)
Funding: 100% funded
Bids: 153 bids
Borrower APR: 22.24%
Mo. payment: $111.53 (3y loan)

Of his $111.53 monthly payment, Only $1.86 goes to me. I only lent him $50 of the $3001.00 he borrowed. After this payment, I'll have at least $1.86 less loss if he decides not to do it again next month That would put my $18.01% up to 18.02% return

I'm actually ecpecting a couple Late payments/ defaults this month. But I figured I would have had that in the last couple months. I'm due for 2-3 to go bunk on me. Till then, I'll ride the 19% wave.

 

[1_pointer]

Maybe you should start marketing this loan scheme thing as a way for folks to get the upfront money for tag applications...! I'd expect you could get quite a few takers and most would be paid off with in a few months. Heck, I don't know, I just get a paycheck and let someone else do something with 7% of it...

 

[Moosie]

I would love to get upfront money for tag applications. But, the problem is it's a Costly way to get money for the applications

Problem is, If I would use it for my applications I would have t ofigure out how to pay it back because I always draw

......BTW, what do you mean "Loan Scheme"?

 

[1_pointer]

I thought 'Loan Scheme' sounded nicer than Check City wannabe...

No, you shouldn't use the loan program for your tags, you should get folks to start borrowing money from YOU to put in, sorta like a small version of Cabelas TAGS. I'm sure schmalts would take you up on it and you don't have to worry about him drawing...

 

[jabber]

You wouldn't happen to have his ad requesting the money still do you? It would be interesting (to me) to see what his reasoning for needing the money that you fel.. I mean made you trust him to start with.

 

[Moosie]

Jabber, I'm not sure in People not registered can see closed loand by here is the link :

http://www.prosper.com/lend/listing.aspx?listingID=282846

If that woesn't work, I can cut and paste all his info and tell you what I thought was good or not good.

 

[jabber]

This is what the link showed.

Listing Not Available

This listing has ended and is no longer available for public viewing.

Please help me save my credit!
Debt consolidation loan $3,001 @ 20.00%
E credit grade
42% DTI
100% funded
153 bids Loan created
Feb-22-2008


Sign in to view this listing if you are the borrower who created it or a registered Prosper lender.

Just curious.

 

[Moosie]

Credit Profile Help
E credit grade Homeownership not verified 42% debt to income ratio

Now delinquent: 0 First credit line: Feb-2003 Employment status: Full-time
Amount delinquent: $0 Current / open credit lines: 22 / 5 Length of status: 2y 3m
Delinquencies in last 7y: 0 Total credit lines: 28 Income range: $25,000-$49,999
Public records last 12m / 10y: 0 / 0 Revolving credit balance: $5,008 Occupation: Sales - Retail
Inquiries last 6m: 4 Bankcard utilization: 100%

Description
Purpose of loan:

I have many small high intrest credit cards that make it very difficult to keep track of and pay. I have never been late on any of my payments on anything….period.I have a lot of student loans on my credit report, but my parents are paying for those. These student loans is why my debt to income ratio is high.


My financial situation:

I currently have 2 decent paying job as a technician and have been at my full-time job for over 2 years. I recently picked up a part-time job so I can get out of debt faster. As I said before, I always pay everything on time. Currently, I bring home about $42,000 a year. This does not include tips, freelance work, or eBay auctions that I do. I have a degree in Web/Graphic design as well as several computer related certifications.


Monthly NET income: $ 3,000
Current Monthly expenses: $ 2,310

-Housing: $ 400 - live with roommates
-Insurance: $ 200 - for vehicle
-Car expenses: $ 800 - car payment and gas
-Phone, cable, internet: $ 60 - cell phone bill
-Food, entertainment: $ 200 - never eat out
-Clothing, household expenses $ 50 - misc
-Credit cards and other loans: $ 600

-Money left over before this new loan: $690
-Total money left over with this new loan: $1,290

I will be consolidating the following HIGH INTEREST credit cards:
-Credit One: $1000
-Orchard: $400
-Home Depot: $400
-Merrick Bank: $500
-Tire Kingdom: $700

Total debt to be paid off with this loan: $3,000



As you can see, I have over $1,290 left over to be used, not only for my Prosper Payment, but for savings and emergencies so that I never get into this situation again. I can begin to live a normal life free from the stress caused by high interest credit cards. I have learned my lesson.

I promise that my payments to Prosper will be my top priority each month. In fact, I am
going to have Prosper automatically withdraw my payments each month so that everyone, including myself, knows that my payment will be made on time, every time. I'm not about to make a mistake with this opportunity to start rebuilding my credit.



Please help me improve my credit. My credit cards have already been shredded and I will never go into credit card debt again! I will pay on time every time. That is my promise to you.



Thank you again for viewing my listing, and God bless.


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Questions & Answers

Q: What were the 4 recent inquiries for? Have you taken out any personal loans or installment loans in the past 6 months? -rush
A: The 4 recent inquiries where for debt consolidation loans that I was trying to get and no I don't have any personal loans. (Feb-28-2008)
1 question & answer