The New Agency Test aka Legal Test has been updated via the blog: Legal Test Update

We have obtained service on 12 of the suits – and have sent “proof of service” back to the courts. Another 41 have been formally entered on the dockets of the court in and are currently out for service. I would believe that some number of these have been served, but we only have a “batch” interface with the process servers, so I don’t have real time date on this. Finally there are 7 suits on which we are waiting for the “file stamped” copy back from the court to send out to service.

At this point, we keep pushing for service. Once we have received proof of service, the minimum time to move for default judgment is 30 days. As a rule, the law firm will wait until 45 days after the service date to file a request for default judgment. Thus far, none of the defendants have “answered” the suit.

I have opted into this lawsuit test (I did not take the junk debt sale price of ~$30 for my loans.)  I have hopes that this will eventually yield more than the $30.  Either way, I will keep me readers informed if any additional information becomes available.

• Prosper Debt Sale Offer Roughly 0.93%-4.83%

• Prosper Announces Collections “Early Delinquency” Letter Series

• Another Step in the Prosper Lawsuits Against Borrowers

• Prosper Site Update — Nationwide 36% Except Texas and South Dakota

• Prosper Update Enhances the Legal Enforceability of Promissory Notes

• Service Businesses Businesses for Sale Opportunities

On Friday, Doug Fuller gave an update on the debt sale.

Synopsis:  Prosper put the bid file on an auction site, 8 bids received, all the bids were very disappointing, Prosper has not accepted a bid yet, and is exploring options for getting a better deal.

When asked how disappointing Doug Fuller further responded via comment…

In round numbers, the bids that we received were approximately 1/3 the prices bid in December. The price difference between the August and December represented about a 20% reduction.

Ok so then the next question is how bad is that?

Looking at the December results we see that the range of bids was from 2.8%-14.5%.  Extrapolating, that would mean the current bids where roughly 0.93%-4.83%…  I would say that is pretty disappointing…  (I received a little over 25% from my 1st loan in a debt sale.)

I am willing to let Doug Fuller find other options…  3 cents on the dollar sucks. 

• Debt Sale Off — Prosper to Apply Post Charge Off Collection Techniques

• Prosper Delinquent Debt Sale In Progress

• Debt Sale Accounting via Quicken

• Another Default Debt Sale

• Debt Sale Announcement on the Official Forum

Catherine Muriel announced on the Prosper Blog that Prosper is going to be running some TV Spots.

I think the ads are well done…  I would like to be able to embedd them in my blog, but other than that I think they are kinda cool…

You can tell that these ads were done by Prosper as opposed to the Lending Club video ads which were done by internet citizens…  

I wonder what kind of responce they will get on TV?

• Prosper Days Day 2 Update

• Prosper.com Crosses 40 Million Dollars in Loans

• Lending Club vs Prosper — The 1st 100 Days Recap and Modest Proposal

• Email From Lending Club

• Standing Order Technique for Prosper Non Autofunding Loans

• Running Exercise Fitness

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Any regular reader will know that last week I brought my first group listing to the marketplace. (As an aside, a group leader is no longer paid for successful listings and the haven’t been since September 13, 2007: Email To Group Leaders After Recent Changes. I think this was a good change and said so at the time and continue to say so now.)

While I certainly helped to the best of my ability and resources, the borrower did an excellent job of leveraging his social capital…

What social capital?

• He made it know that he had a job that supplemented his income. For him that amounted to as much as an extra $900 a month. By putting his blog on the listing he was not only putting his anonymous credit information and verifiable income on display, but leveraging his online assets. By adding the reputation of his blog to the listing, I think he added to the quality of listing immeasurably. Any blogger with any significant track record that puts their blog reputation at risk is serious about the reasons behind the loan and paying off the loan. (His blog is Deep Market.)
• He leveraged his interactions with me — a long time lender and p2p blogger. By joining my group and becoming Prosper friends and accepting my endorsement on his listing he was able leverage his interactions with me (email and blog comments for around a year) into additional social capital: my endorsement.
• Additionally, he used his blog to advertise his listing: Prosper Loan Listing Review. By offering links and reviews in exchange for bids and reviews he was offering a non monetary but valuable asset in exchange for buzz and bids.

What was the net result? A $25,000 loan at an interest rate he is very happy with 18.5%… His loan was bid down almost 7% from his starting point of 25.45%.

Deep Market, Congratulations and good luck… please keep us up to date with your progress.

• Measuring Social Capital

• Programmer and Blogger Seeks Debt Consolidation Loan

• 8 Listing Strategies to get Best Prosper Loan Rate

• Programmer and Blogger Seeks Credit Score Improvment Loan

• Prosper Days 2008

• Lines, Leaders Tippets Fly Fishing Fishing

• Real Estate Opportunities

• Businesses for Sale Opportunities

• Commercial Real Estate Opportunities

• Land Real Estate Opportunities

Well another month down… Nothing major happened that would effect my IRR/ROI (like a debt sale.)  It was a fairly uneventful month for my Prosper p2p lending account, but it was a good month…  My ROI/IRR is higher on 4/5 of my tracking indices (it will be 5/6 when the statements are available and I update Quicken.) And my EricsCC ROI is within 4 basis points of last month’s value.

When going through my late loans this morning to build these statistics I noticed 2 things.  One it is now very easy to tell which loans are in bankruptcy vs which loans are in collections.  (3 of my 29 1+ late or worse loans are in bankruptcy.)  The second is a more positive development many (more than I have ever seen before) of my late loans have collections payment pending.  In fact, 1 of my 4+ month late loans has a collection payment pending, 3 out of 7 of my 2 month late loans have a payment, and 2 out of 3 of my 1 month late loans have a payment.  Maybe things are looking up in the collections area?  Time will tell.

Anyway, here is a chart of my updated IRR and ROI values…

• RateLadder IRR/ROI Update April 2008 — (2.6%) to 14.37%

• RateLadder IRR/ROI 6/08 Update — 0.57% to 16.64%

• Update of IRR/ROI Values July 2008

• RateLadder IRR/ROI 3/08 Update — (2.11%) to 13.06%

• RateLadder IRR/ROI Update — (1.07%) to 14.18%

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(Editor’s Note: This is a serious post and potentially a great opportunity for the right 3rd party.  This offer does NOT involve Loanio.)

Company looks to sell all rights to its proprietary P2P lending technology. The company has been quietly in development for the past year, though has now decided to halt launch plans for undisclosed reasons.

It has developed a complete P2P lending web application that will provide any aspiring P2P company with technology to support rapid deployment in any geographical market. It is based on the popular auction-style bidding format for lenders. Front end is fully branded, and sale can be made to include branding, or packaged as a white-labeled solution.

Terms of sale can be negotiated to include customization, enhancements, and project management / consulting.

This is an extremely rare opportunity to acquire the world’s only out-of-the-box P2P lending system allowing the purchaser to enter the red-hot Person-to-Person Lending space.

All enquiries should be directed through the website at: http://p2ptechforsale.com/

Technical specifications, terms of sale, and all other questions will gladly be discussed under terms of a standard Non-Disclosure Agreement.

Serious enquiries only, please.

• Prosper Delinquent Debt Sale In Progress

• BankServ powers innovative Lending Club person-to-person lending and borrowing platform

• Debt Sale Accounting via Quicken

• Year End Lender Statement Arrived via Email Today

• RateLadder and LazyMan Default Debt Sale Results

• Plans, Blueprints Guides Building Hardware Home Improvement

• Real Estate Opportunities

• Businesses for Sale Opportunities

• Commercial Real Estate Opportunities

• Land Real Estate Opportunities

My Prosper Group is proud to present our first listing… This listing is attempting to put the social in social capital. Deep Market also posted the following Social Lending is not Socialism.

He has been a member of my group, following the p2p lending market and commenting on RateLadder for some time.

He is a computer programmer and independently runs the stock market blog Deep Market.

The loan will be a straight forward debt consolidation… Reducing his credit card rates and putting himself on a payment plan will help him eliminate this debt faster…

The debt accumulated from a failed attempt at running his own consultancy… He is back to work with a steady paycheck and cash flow is no longer the issue…

I bid $126.76 @ 1%…

He is in a “moderate” portfolio plan slice at 12.4%… All bids welcome, but if you want to ensure you are on the loan please bid under 12.4% (11.73% as a final rate would have an estimated yield of 8%)…

Here is what prosper says about that slice…

Minimum bid rate: 12.40%
Estimated loss1: -2.59%
Adjustment2: -0.14%
Servicing fee: -1.00%
Estimated return3: 8.67%

Here is the listing.

$25 Bonus For New Lenders
How to Use Prosper Listing Widget for MySpace, Blog, Website, or Other

• Fellow Blogger Seeks P2P Loan on Prosper

• Blogger Obtains Loan Using Social Capital

• Programmer and Blogger Seeks Credit Score Improvment Loan

• Best of RateLadder 3rd Quarter 2007

• Rateladder Referral Listing: Debt Consolidation

• Thank you Akismet

Another late loan and another withdrawal.  Eagerly awaiting the end of the “quiet period.”  I think competition is good for the market and at the exact moment it feels like Prosper is the loan dog (pun intended) in the p2p lending market…  Zopa provides a CD and Lending Club doesn’t have lenders.  Will loanio launch at finovate startup?  Are there others in stealth mode waiting to launch…  Now seems like the time… 

• Lending Club Recharicterzation

• Prosper vs Lending Club — The First 100 Days

• Lending Club Forum

• Prosper vs Lending Club — The First 100 Days Take 2

• Lending Club Referral Program Expanded to Affiliates

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• Signature Club A Blush Makeup Store

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• Signature Club A Foundation Makeup Store

• Club Monaco Lipstick Makeup Store

With a banking partner in WebBank, Prosper opens up to a nationwide audience of borrowers.  Their timing couldn’t have been better.  Welcome borrowers! (Except Texas and South Dakota)

Minimum instant transfer of $50 on 50% of your active loan value is now possible… In my opinion, this change greatly reduces (maybe eliminates) the need for interest on fallow money.  Now you can leave your money in your favorite interest bearing account and transfer in money just in time to bid on listings.

There were several other changes and the promise of many under the hood improvements at The Prosper Blog: Second loan criteria updated, AA borrower lender servicing fee adjustment, listing duration set to 7 days, online tax forms, and other improvements.

And Doug Fuller gave a recent collections update.  AmSher is showing promise.

Thanks Prosper!

• Prosper Debt Sale In Progress

• Prosper Release — All Steak No Sizzle

• Another Unexpected Site Outage At Prosper?

• Prosper and Lending Club on CBS News Nationwide

• New Loan Funded — Relocating, Need Quick Cash to Payoff Home Equity Loan — $25,000 at 22% — C Credit — DTI 28%

• South Beach Diet Weight Management

With the lender statments taht were released this weekend it is possible to update my Quicken ROI…

Last month being a quiet “normal” month one would expect an increase in the quicken value…  My Quicken ROI increased from 8.11% to 8.99%.

• Quicken ROI Update = 11.22%

• RateLadder Quicken ROI Update November 1, 2007

• Quicken Updated To Reflect Borrower Loans In Lawsuit

• Quicken ROI Update = 8.11%

• A Look At the Graphs and Charts from Quicken in My Prosper.com Account