Loan from Grade A Borrower Without One Single Payment

[go4reward]

This borrower who had a credit grade of A, no DQs & 1 INQ. Yet I did not get a single payment at all. Now the loan is charged off.
http://www.prosper.com/lend/listing.aspx?listingID=394170

[BigCowboy]

All I can say is OUCH!  Borrower youngmogul is also a lender:

http://www.lendingstats.com/lenders/youngmogul

and he also is losing his shirt, pants, shoes, socks, underwear, etc....

-BigCowboy

[go4reward]

All I can say is OUCH!  Borrower youngmogul is also a lender:

http://www.lendingstats.com/lenders/youngmogul

and he also is losing his shirt, pants, shoes, socks, underwear, etc....

-BigCowboy

Yes, that is terrible. He must be using his debt for his loans. I think Prosper should get his loan earnings and pay for lenders.

[deskguy]

 my first charge-off was also a guy who never made a payment. and he only borrowed $1,000!!!! like yours, he was also  from mississippi.

 deskguy

[Investar]

You got yourself a puzzler there, Go4r. He claims Investor as an occupation. If he manages a very conservative portfolio as he states, and if the $36,000 he originally allocated to Prosper was a conservative move in keeping with his style, say 1% or 2% of total, his overall portfolio would be some 2 million dollars. And then, the $100,000 annual return he claims from such conservative investments is doable.

Low credit card utilization means he's got a 100k line of credit. This also supports the general profile of a conservative individual with excellent financial acumen. Why does he need a loan at all? He wants to keep his credit report "alive" even though he doesn't need it. He hoped to keep the action going, but at a lower rate on Prosper (which didn't happen, his Prosper rate about equals his revolving credit rate).

Maybe even a good man who tithes twice the norm to his church can get mad enough at Propser to get even. The $15,000 he walked away with would get him back to somewhere near break-even on Prosper. Or maybe something totally unexpected happened, like a health issue. Maybe there's a problem with Mississippi? I dunno Go4r, you got yourself a puzzler there!

[go4reward]

His stats look great! But he did not pay! The only problem I see now based on the fact he did not pay because his money is playing with other Prosper loans. A no-no for me in the future.

[Investar]

my first charge-off was also a guy who never made a payment ... like yours, he was also from mississippi.

Here's the map I was huntin'...! Guess what? State by state, Mississippi has the second worst default rate in the nation (31% of loans delinquent). For some reason New Hampshire is the worst with 32% of loans in trouble.

LendingStats heat map of (NoGroup) filtered for Delinquent Rate

Give it a minute to load. "(No Group)" is all Prosper loans. Just as you can slice and dice lender stats you can look at various Prosper Group stats.

[deskguy]

Give it a minute to load. "(No Group)" is all Prosper loans. Just as you can slice and dice lender stats you can look at various Prosper Group stats.
-----------------------
 great map! better late than never i guess. wish i'd seen it last summer when i got started. thanks, but suspect i've made my last prosper loan if lendingcub's experience is any criterion.

 deskguy

[go4reward]

LendingStats heat map of (NoGroup) filtered for Delinquent Rate

Give it a minute to load. "(No Group)" is all Prosper loans. Just as you can slice and dice lender stats you can look at various Prosper Group stats.

That is a very interesting chart there. But the question are:
1. Does "No Group)" imply the borrowers do not belong to any Prosper group?
2. Are the % of loans from the overall picture? Meaning is Mississippi only has 10 loans as compared to CA which has over 10K loans.

[Investar]

That is a very interesting chart there. But the question are:
1. Does "No Group)" imply the borrowers do not belong to any Prosper group?
2. Are the % of loans from the overall picture? Meaning is Mississippi only has 10 loans as compared to CA which has over 10K loans.

1) "No Group" is LendingStats group 'name' for ALL Prosper loans, period. He has collected them as a group so you can compare any of your personal numbers (or your group's numbers) to the universe of total. You can look up various actual groups, just as you do lenders - here is Socorro Capital Partners.

2) I believe the (%) delinquent is the percentage of total dollars loaned within that state. More HR's versus A's in a state would skew your apples-to-apples comparison (but not much, I suspect). The other (%) - average loan rate - would be across all borrowers in that state, irrespective of A, B, C, etc risk group. Again, one state could have more A's while another has more HR's.

[sosocratic]

This borrower who had a credit grade of A, no DQs & 1 INQ. Yet I did not get a single payment at all. Now the loan is charged off.
http://www.prosper.com/lend/listing.aspx?listingID=394170

To be honest, I would not have bid on this one. I would have wondered why a  guy with $5000 in disposable income (monthly income above his expenses) and $11,000 in listed debt wants to borrow $15,000 to consolidate credit cards. He also tells us that his credit cards are at 19.99% but he is willing to take a Prosper loan for 18%?. That just doesn't seem to be enough of a differential to make it worth while. And why does a guy with an income of $100+K have credit card balances at 20% that he is having trouble paying? He wants the loan for home improvements? Why not just pay down his other credit cards over 3 months and then make the improvements. He is basically taking a loan to pay other loans so that he can borrow again - all when his stated numbers suggest he should be able to pay for all of it out of pocket with no debt.


His stats are great but it just doesn't pass the "whiff test".

[Investar]

This borrower who had a credit grade of A, no DQs & 1 INQ. Yet I did not get a single payment at all. Now the loan is charged off.
http://www.prosper.com/lend/listing.aspx?listingID=394170

His stats are great but it just doesn't pass the "whiff test".

I agree. I skipped over the obvious "but why are you even doing this" flags you saw In my review (above) because this guy doesn't have a 'real job' and a full time investor works his money basket a little differently than most of us, particularly if he's only doing CD's and the like. Before my bid could occur I have several rather leading Q&A questions to pose sequentially to draw him out a bit. As for the standard sniff test, on the face of it he doesn't pass.   

[go4reward]

You guys are experts in the lending field.

[Investar]

You guys are experts in the lending field.

And of course we know what an "expert" is .. .. a drip under pressure that has noisily spurted .. .. or .. .. any ordinary man 50 miles away from home (where he can pontificate and none are the wiser). And so, the next rule of P2P investing: never loan money to a borrower in your own state. If they happen to live within 50 miles you loose your expert-ise!
 
Actually, there might be somthing to this? My one borrower who oft goes late (has always come back so far) is from my state, and the only I have from my state, and the only that does this.
   

[taxesformuchlessinc]

I don't know what to make of all this.  Has this dude made a payment yet?

taxesformuchlessinc