Last week I wrote a post about Tracking a bad Prosper loan through my Prosper lending account. For those of you who don’t know, I have written several posts on both my Prosper lending and borrowing experience. The details of this loan are below -
| Origination Date | Title | Credit Grade | Lender Rate | Debt To Income | Loan Status | Winning Amount |
| 1/30/2008 | Paying off my credit card debt from Pepperdine University | A | 14.75% | 24% | 2 months late | $50.00 |
Now to the update -
I got home last evening and turned on my computer to check email and my Prosper accounts as I do every day. When I checked the status of the loan I mentioned above (over 2 months late), I almost fell off my chair when I saw that there was a payment in transit. Now the payment was for a whopping $1.73, but the simple fact that there was activity on the loan made me happy. I am also trying to calm myself a little as this loan has shown that money was in transit at least 4 other times and then disappears a few days later. I am cautiously optimistic at this point that I may see at least some of my money back out of this transaction. On a positive note, because the payment is so late, all of the funds will be counted as interest and late fees, so the resulting principal balance remains the same at $48.88.
On a sour note, I also had another loan in my portfolio show up as being Late (<15d), so I will now be tracking 2 bad loans instead of 1. The details of this latest loan are below.
| Origination Date | Title | Credit Grade | Lender Rate | Debt To Income | Loan Status | Winning Amount |
| 5/6/2008 | OK, let me try again! No Jail this time! | D | 18.69% | 32% | Late (<15d) | $50.00 |
On paper, this 2nd late loan looks to be much riskier than the 1st loan that I mentioned. I made a bit of a stretch on this loan as the total amount requested was $1,500 which to me was more reasonable than a loan over $5,000 for a borrower with a D credit grade.
I will provide an additional post in the coming days to detail my entire Prosper lending account status for the month of June (2008).
{ 5 comments… read them below or add one }
Aaron Wakling 06.12.08 at 7:15 am
Thanks for posting the article, was certainly a great read!
passivefamilyincome 06.12.08 at 7:20 am
Aaron - Thanks for the kind words!
Ralph 06.12.08 at 11:40 pm
At least you’ve used a spread to minimize the risk. This is one of the reason’s I’ve stayed away from Prosper. I hope it turns out ok for you though.
Lulugal11 06.16.08 at 10:25 am
I lend on Prosper too and although I only have 3 loans I am still afraid of losing my money.
So far my 83 cents per loan has been coming in on time so I am glad that I am getting that little return.
I would have a heart attack if I had a late loan like you did so I can understand the dance for joy when you saw the money coming in.
passivefamilyincome 06.17.08 at 7:28 am
LuLuGal - Yeah, it is like a roller coaster right now for me with these Prosper loans. I get excited and then disappointed. I am planning on continuing my strategy through the end of the year and will then re-evaluate at that time.