Author Topic: How does a note go from current to 31+ days late?  (Read 4341 times)

MTaylor

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How does a note go from current to 31+ days late?
« on: January 19, 2013, 05:33:15 PM »
I had a note go late, but instead of showing up in "Past due (1-30 days)" it was immediately listed as "Past due (31+ days)." How is it possible it skipped being late 1-30 days?

william

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Re: How does a note go from current to 31+ days late?
« Reply #1 on: January 20, 2013, 01:20:45 PM »
I'm not sure. Can you post a link to the note?


MarinBB

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Re: How does a note go from current to 31+ days late?
« Reply #3 on: January 23, 2013, 11:07:23 PM »
The link to the LoanPerformance page only works for lenders who are on that loan. On that page, there is a link called "View Listing". Can you open that and tell us the Listing Number of the loan that you have a question about? It's the last 6 digits of the Listing page's link (e.g. 633560 in https://www.prosper.com/invest/listing.aspx?listingID=633560).

I'm putting together a tool to calculate dollar loan returns for any loan or portfolio on Prosper (www.lendingchampion.com) and I think that I have a guess as to what might have happened. I usually see a loan gap from Current to 31+days late when:
1. The borrower is late and the note is marked as 15-30 days late
2. The borrower makes a payment and Prosper marks the loan as Current
3. The payment fails. This usually takes 3-5 days business days to be reflected in the payment history.
4. Prosper marks the loan as 15-30 days late again or, if enough time has passed, 31+ days late.

« Last Edit: January 23, 2013, 11:09:27 PM by MarinBB »

Xenon481

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Re: How does a note go from current to 31+ days late?
« Reply #4 on: January 26, 2013, 05:40:17 PM »
I had a note go late, but instead of showing up in "Past due (1-30 days)" it was immediately listed as "Past due (31+ days)." How is it possible it skipped being late 1-30 days?

This often happens when a payment is successfully pulled from the borrower's account, but then the borrower disputes the validity of the payment with their bank (and has the bank pull the payment back from Prosper.

The dispute is fraudulent, yet often times, Prosper is never able to recover any further payments from a borrower that takes these actions.
The Motley Fool says to Avoid Prosper Like The Plague.

Read about historical Prosper actions/problems at Prospers.org

MarinBB

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Re: How does a note go from current to 31+ days late?
« Reply #5 on: January 27, 2013, 09:04:00 PM »
Do you have examples of listings that have done this? I have not seen this pattern of delinquency in my portfolio. Most of my "bad" loans come back and make at least some payments after the initial failed payment with the obvious exception of BK filings.

MTaylor

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Re: How does a note go from current to 31+ days late?
« Reply #6 on: January 27, 2013, 10:15:46 PM »
I've tried for the last 10 mins to post a screenshot but keep getting an error message. I'll have make do with a cut and paste of the payments. It was only listed as late on Jan. 19 and went directly to 31+ days late without passing Go.

Payment
number   Transaction effective date   Account effective date   Type   Status   Total
paid   Prosper
fees   Late fees   Interest   Principal   Principal
balance
3501877    Dec-18-2012    Dec-18-2012    Automatic    Failed   -$2.17    -    -    -    -    -
3496912    Dec-17-2012    Dec-17-2012    Automatic    Processing   $2.17    -    -    -    -    -
3424842    Nov-17-2012    Nov-17-2012    Automatic    Paid   $2.17    -    -   $1.35   $0.82   $49.18
3 payments

MarinBB

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Re: How does a note go from current to 31+ days late?
« Reply #7 on: January 31, 2013, 09:40:59 PM »
That's a good question, it sure seems like the loan should have been marked as Late <15d from ~Dec. 31st to ~Jan 17th (end of the two week grace period to being 1 month late on the Dec. payment). It's also curious that there is no attempted "Automatic" payment around the Jan. 17th due date in the payment history. You can ask Prosper about it; they sometime take a while to get back to me but can be quite helpful when they do.

This is an example of what I was describing previously: http://postimage.org/image/4bkslwvez/

The loan was marked as "Current" while the December payment was "Processing". It was also marked as "Current" from Jan 7th to Jan 24th even though it did not make its December principal payment (there was an interest-only payment).