Another Prosper Loan Defaulted

Another one of my Prosper loans has now defaulted and been sold to a collection agency. The loan was for $100 at 23.75% interest. A total of five payments were made. I received $12.55 in principal, $10.87 in interest, $0.39 in late fees, and $2.56 from the proceeds of the sale to the collection agency. In addition to the standard Prosper service fees, I was charged and additional $0.33 service fee on the default and a $0.21 collection fee. My net loss is $74.17. Again, this borrower was classified as High Risk and I knew there was a good chance of this one defaulting when I made the loan.

I wrote off the amount of my first defaulted loan on my 2006 income tax return. Looks like I'll have one more to write off on this year's return.

I now have two Prosper loans left, both of which are still performing. One is rated A, the other is rated D. (The ratings are A, B, C, D, E, HR, and NC. HR is High Risk and NC is No Credit score.) The A rated one is at 8.85% and the D rated one is at 15%.

At this point, I am really just waiting for all my loans to be over one way or the other so I can leave Prosper for good. I've already written about why I am leaving Prosper and now that I am down to two loans, I am getting anxious to leave. My total monthly income from these two loans is under $7. You can't transfer money out of Prosper's system until you have at least $25 in your account, so that means I have to wait four months until I can get each little chunk of money back. The loans are scheduled to be paid off in March, 2009. *sigh*


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