Yesterday Prosper began a delinquent debt sale.  This happens when loans are 4 months or more late and are sold to delinquent debt buyers…

Loans receive different amounts depending on the credit grade and other borrower information.  From my standpoint (observer as I have no loans in the debt sale) it appears that the better prices are paid for higher credit grades and homeowners.  If any readers want to report there sale prices and loan information please leave a comment or send me an email kevin at rateladder dot com.

I have two specific examples from a reader: Lazy Man and Money…  One a homeowner and the other wasn’t.

Loan: “Paying off credit card debt” 
Sale date: May-31-2007
Sale reason: Delinquency
Principal balance before sale: $52.88
Loan value before sale: $64.52
Proceeds from sale and forfeited group rewards: $1.55

Loan: Looking For $$ For New equipment
Sale date: May-31-2007
Sale reason: Delinquency
Principal balance before sale: $54.90
Loan value before sale: $64.44
Proceeds from sale and forfeited group rewards: $9.69

I am very interested to see how this plays in the upcoming lender IRR game update.

Related posts:

• Year End Lender Statement Arrived via Email Today It is pretty basic…  It has my information, a lending summary, a loan sale summary, and a listing of all loans held and activity during...
• Feb07 Review of 2007 Goals and Progress Report Febuary 07 review of my 2007 RateLadder.com Goals.  I have changed my ROI goal to an IRR goal. Feb Year Yearly Status 2007 Year Ending...
• 2 New Loans (Part 2/2) — Debt Consolidation — $20,000 at 18.00% — C Credit — DTI 23% A new loan funded this afternoon (Debt Consolidation (Loan #6419) — $20,000 at 18.00%).  I participated via my standing order: Mid DTI — AF.  Which...
• Accounting for Prosper in Quicken Strategy Update? Yesterday I received a comment from a reader: Question: would the principal repayment be considered a “return of capital?” as opposed to a sale? What...
• New Loan Funded — Removing Remaining Debt — $25,000 at 22% — AA Credit — DTI 15% A new loan funded (Removing Remaining Debt – $25,000 at 22%).  I participated via my standing orders High Amt (>=15K) Low DTI (=15K) Mid DTI (=15K) High DTI (=15K)...

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