13 Responses

TexasLender | December 28th, 2007 at 11:37 am

Why were the rates so much lower for Texas loans?

Chrisfs | December 28th, 2007 at 12:43 pm

Thanks for getting this out in 2007.

RateLadder | December 28th, 2007 at 4:57 pm

The debt collection law in Texas is very debtor-friendly. For example, certain post-judgment remedies are not available there, such as wage garnishment, and in Texas the homestead exemption is not limited as in most other states. Texas courts often rule in favor of consumers in debt collection cases. Therefore, Texas debts sell for a fraction of what debts from other states do.

Nontyper | December 28th, 2007 at 7:45 pm

I did not have any defaults to sell in this sale, fortunately I did not have any loans that qualified.

But am I to understand that all homeowners(ex Tx) got 12.5% of their remaining capital and that only non-homeowners(ex Tx) got the different amounts? Since Prosper is a signature loan, I would think that there can be no lien put on the home so why do they collect more?

RateLadder | December 28th, 2007 at 7:47 pm

Texas loans as a whole were singled out. Each of the above groups is a separate group of loans.

msava | December 30th, 2007 at 12:19 am

A few of my eligible late loans did not sell off. When is the next debt sale?

warfighterusa | December 31st, 2007 at 10:26 am

I would like an example of an expected return on a defaulted loan that was sold. I am not clear about the % of the principle it sounds like if I loaned $100 and it defaulted and was sold fo 12% of principle that I would only get $12 back. Is that correct?

RateLadder | December 31st, 2007 at 10:38 am

@warfighterusa

% of principal is quoted on the remaining principal of the loan…

If where no payments were made then a $100 loan then you would get $12 if the sale price were 12% of principal.

However, most loans in the sale had made some payments and as a result the remaining principal might be something like $85 remaining on a $100. Which if it sold at 12% would have a sale price of $10.20.

As for ROI it depends on several other factors namely interest rate and when payments are made.

Does that clear up the picture?

gerry1945 | January 1st, 2008 at 3:10 pm

Only about half of my loans which met your eligibility requirements were sold. Why is this, and does it imply that they will never be sold?

RateLadder | January 1st, 2008 at 3:53 pm

@msava & @gerry1945

Loans that are part of the “New Agency Test” or part of a bankruptcy filling were not sold in this debt sale.

To my knowledge, all other loans that were eligible based on the cutoff date were sold.

Cutoff date: more than 122 days past due as of December 4th, 2007

Pascal | January 10th, 2008 at 5:56 pm

701 loans were sold…
That figure is so much of nothing by itself.

Out of how many total active loans?

RateLadder | January 10th, 2008 at 6:24 pm

@Pascal

Active Loans is a moving target… The 701 loans represents the loan pool eligible for the debt sale.

Where “active” = current, late, 1 month late, 2 months late, 3 months late, or 4+ months late.

There are current 14,271 “active” loans. Lending Stats Active Loan Count

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