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[iLIE]

Sell mine please.

Posted on the blog of the guy we can't talk about in the lobby.

[iLIE]

Why am i surprised he wants to keep them for a while & try to get more money?

Oh wait..Thats right.

He works for Prosper Marketplace Inc.

[RateLadder_com]

If you are going to steal my title the least you can do is give me someone a link so they can read what I wrote...
http://www.rateladder.com/2008/05/05/prosper-debt-sale-offer-roughly-093-483/

[iLIE]

As soon as you do something decent,people here will give you the same accord.

Nice comment moderation by the way on the official blog.

ETA: While you are here,maybe you could tell us what you are doing with all of this $50,000 you have borrowed in the last few weeks.

[mothandrust]

Sell mine too.

Now a legitimate and transparent business would provide the names of the bidders and the actual bids.

At least tell us 3 of the 8 bidders and the mean, median, and mode of all 8 bids.

The "mode" (most frequently occurring bid) is important because if you were to know that 7 of the 8 bids were at 0.0000001% then this is effectively a bid of zero, and there really would be only 1 bid that Prosper obtained and not 8.

I'd still want my loans sold at the bid price, but it would be harder for Prosper to continue perpetrating this charade on lenders.

Prosper, just be honest and forthcoming--all the kickbacks and backroom dealings always come out in the end.  Sure, you can hide for a while but eventually it all sees the light of day.

[mothandrust]

While we've been waiting around, my 4+ month late loan has just filed for bankruptcy.

Although fine wine improves with age, festering loans do not.

[iLIE]

While we've been waiting around, my 4+ month late loan has just filed for bankruptcy.

Although fine wine improves with age, festering loans do not.

Another reason to sell them as soon as they achieve the 4+ mark.

[Mtnchick]

While we've been waiting around, my 4+ month late loan has just filed for bankruptcy.

Although fine wine improves with age, festering loans do not.

So now you will get nothing. That .93-4.83% all of a sudden looks purty darned good.

[mhs505]

While we've been waiting around, my 4+ month late loan has just filed for bankruptcy.

Although fine wine improves with age, festering loans do not.

And mine made a payment.  It can cut both ways.

[ira01]

While we've been waiting around, my 4+ month late loan has just filed for bankruptcy.

Although fine wine improves with age, festering loans do not.

So now you will get nothing. That .93-4.83% all of a sudden looks purty darned good.

Actually, as long as it is a Chapter 7, in which the lenders get nothing (versus a Chapter 13), oddly enough the BK will be MORE advantageous to most lenders than if the loan had been sold in a debt sale in late-April as we had been expecting.  Assuming the loan in question is Listing 115080 (mothandrust's only Late-4), that loan originated on April 3, 2007.  Had it been sold at the end of April for .93-4.83%, the lost principal would have been a long-term capital loss, worth 15% to most lenders.  But as a Chapter 7, it is a non-business bad debt, which is treated as a short-term capital loss worth 25% or more to most lenders.  Thus, that extra 10% much more than makes up for the lost JDB proceeds.  And for lenders in the 15% federal bracket, their long-term capital gains rate is 10%, so there is still a 5% advantage to a BK over a debt sale -- which is more than the .93-4.83%, so they come out ahead (though not as far) also.  Isn't the IRS amazing?   

[Mtnchick]

I prefer the bird in my hand

[Capital_Finance_Group]

While we've been waiting around, my 4+ month late loan has just filed for bankruptcy.

Although fine wine improves with age, festering loans do not.

So now you will get nothing. That .93-4.83% all of a sudden looks purty darned good.

Even on the loans that are not in BK that looks good to me. I have 1 loan in the current batch and I am ready to cut my losses and move on.

[xraider]

Mothandrust, if you don't like Ira's math, consider writing to Prosper advising that because of its breach of fiduciary duty to you, your loan has gone bk and has become valueless.  Demand that Prosper repurchase it from you.

I would (and will if any of my lates go bk).

[Senator]

Why would you write a letter that won't be taken seriously?  You know you won't get a response.

[xraider]

Senator, I strongly believe in trying to resolve concerns short of litigation.

This was a highly foreseeable result of Prosper's violation of its debt sale delay, and I would hope that Prosper would address lenders' concerns in this regard.