Late Group Loans Update

It is with great sadness that I have to report two P2P-Loans.com loans that are now over 1 month late (soon to be 2 months late). In fact, one of these loans, after making her first 4 payments on time, recently filed for bancruptcy. This loan going late is particularly disappointing since she was referred to me by a family member (who also has a Prosper loan in our group), we talked on the phone a number of times, I sent her some baby clothes for her newborn son, and I've offered to help her with free advise and possible financial assistance to no avail. I truly believed we'd established a connection and that this connection improved the quality of this loan (I was wrong). In fact, I invested $400 in this loan, which surely will be worth little when the courts are done with it. The second late loan is a little puzzling to me as this individual had also made his first 5 monthly payments on time and we had discussed, at length, the possibility of paying this loan off and refinacing with a slightly higher loan so he could buy a car. He ultimately concluded that he could get better financing somewhere else and declined to pursue another Prosper loan. We had very open and candid conversations, thus I am surprised at this late loan (I personally invested $300 in this loan). I have not been able to re-establish contact with this borrower, but I continue to try.

While we do have 2 late loans, P2P-Loans.com has had 23 loans issued, 2 repaid and 2 late. The remaining 19 loans are current and account for well over 100 on-time payments! It is also noteworthy that the two late loans are "D" rated loans (hence, higher risk). Given our group has 10 loans that are C or lower, 2 late loans, while not a good thing, is not a disaster. I am still hopeful that the non-bankcruptcy loan will be brought current although I recognize the realities of this hope. Please check back here for further updates, which I will gladly provide to any group members or lenders on these loans. Thanks again to everyone that supported P2P-Loans.com. Perhaps I'll revisit my involvement with Prosper down the road. I have seen a number of positive changes more recently and hope to see more in the coming months.

Thanks,
P2P-Loans.com