Occupation: School Teacher
Annual Income: $63,000
Monthly Take home pay: +3800
Mortgage Payment:-2100
Car Payment: None
Auto Insurance:-200
Gasoline for Car: -250
Credit card payments:-550
Live in girlfriend pays for Utilities, food, and entertainment.
I would like to transfer the balance of one credit card into a Prosper loan.
HSBC Credit Card:
Average Daily Balance=$8167.51
monthly periodic rate=2.492
ANNUAL PERCENTAGE RATE=29.898%
Current finance charge=$203.53
Sending HSBC a check for $8167.51 = PRICELESS
Sounds pretty good so far and lots of people are responding with bids.
But I don't like it. Why? Because he goes on to say:
I have paid on time for the past four years which allowed me to purchase a house in april 2006. But now I have no equity to take out a loan but I do have substantial income enough to make payments on a $8100 loan.
The Cal helmet and the $63,000 salary tell me he's in California and he bought a house in California in 2006 someplace where they pay $63k for school teachers. I'll pass.
34 comments:
Monthly Take home pay: +3800
Mortgage Payment:-2100
holy crap!
Monthly Take home pay: +3800
Mortgage Payment:-2100
Noticed that did you? I tried to downplay it to see who was paying attention. That means his property taxes are about $400/mo as well. This guy doesn't live IN a house he lives FOR a house.
This is also why I wouldn't lend. He's loosing (losing?) an additional $2000/mo in equity. And while he doesn't say there's a damn good chance that $2100 is not the 30yr full rate. What's the fully amortized payment? $3801/mo?
I posted this a few threads back, but since you started a Propser thread, this seems more appropriate here. Please delete the original if you don't like cross posting.
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I would agree that Prosper does serve a legit purpose, but I'm wondering how well they screen their applicants info. In glancing over some of the applicants I noticed this one huh??.
There are just so many things in this scenario that don't make sense.
1) he claims a debt-to-income ratio of 39%, but if you add up his mortgage payments and car payments, it's close to 80%.
2) the payments of his consolidation loan over 3 years is $532 vs. a current payment of $1,100? Just what kind of credit card does this guy have? All my cards have a minimum payment of 3% of the current balance. So if $1,100 is too much, why not just pay less?
3) He claims to be a loan broker and if anything happens he can pull equity out of his property, or even sell - so what's stopping him now?
4) his expenses doesn't include property tax, mortgage insurance, or anything such as cable/sat, internet, or entertainment. So who pays these expenses?
I believe that I'm probably not the only one who has doubts as this seems to be his fourth time asking for money (his first time was for $10K). Still, it makes you pause.
What's the file# on this guy. I want to check out his credit. I just made $250 and I want to invest in sure thing.
CS
That guys DTI is sweet. Mine is infinity.
Casey
Recond,
You gotta be fast around here.
My turn to say holy crap. 4 houses in or around Vallejo worth $3m with $650k in equity and he needs a 20% loan?
My take:
1 His mortgage business origination fees are in the crapper.
2 He's been a mortbroker for 4 years so his properties are all 2003-2007 vintage.
3 There's NFW he's cash positive on two to the tune of $1300/mo.
4 oh nevermind... this one is a stinker.
(ThisGuy)-(LiveInGirlfriend)=bankrupt
Seeing as she pays for entertainment, I hope, for his sake, that she buys herself a few dozen roses tomorrow.
I zereod in on his mortgage and take-home pay as well. That's just insane.
My housing costs are about to go up to 28% of my take-home pay (currently it's around 15%) although I'm expecting some changes in my income that will offset that. That ratio makes me nervous enough. 55% would make me wet the bed.
He says he's a loan officer but in the occupation section it shows him as a "Realtor."
He also has two current delinquents, 37 open lines, and this is his fourth attempt to get funded.
I'm not sure what % of prosper funds actually get funded and pass Prosper's back end checks but it can't be more than 5% of total applications.
Rob,
no doubt, I've noticed that this place moves very quick, which is a nice change to IAFF. I gave up on that place a while back because Casey moderates that place like a turtle caught in quick sand.
I'm not from CA, but I also live in a hyper-inflated market and I thought the same thing - there is no way that he could be cash-flow positive on those properties. I think that he is trying to pay off a 2nd or a bridge loan, and pass it off as a credit card debt.
I think he's about to sink.
Dolph,
I don't quite understand lexus modesto in the Caseylandusa feed...?
how does Prosper enforce defaults?
even with screening, bad things happen. Or people may go "Sarin on their FICO"
At least CashCall or your friendly CC company has legal recourses to get judgements against you pretty efficiently.
Individuals have a tougher time, especially if the amount is beyond small claims court limits.
The teacher is underwater on the house probably to the tune of 50K, hence he can't pull out any equity to pay of the credit card. He is probably also on an ARM, or a neg arm, so once it goes up, once he runs out of all options, he will be just like Casey, SCREW everyone I owe money to, I got my own problems heah!
If he couldn't even figure out that he couldn't AFFORD the house (or even worse he thought real estate would always go up) then why the hell would I believe his has the business accumen to treat my investment wisely? I see this guy paying off the credit card, looking to his girlfriend and saying "honey, we are going out to celebrate by spending more money. don't worry, I'll never let the credit card get that bad again! What do you think I am an idiot. By the way, you owe me for last months rent""
@King.
Defaults are turned over to a collections agency. Any amount collected is passed on to the individuals, pro rata.
As for the mortgage broker, (Nigel look at your future)
Debt Consolidators $14,000.00 @ 20%
Credit grade: C
Debt to income: 39% 55% Funded:
63 bids 3d 4h 46m left
Feb-06-2007
Relist higher %:Loan Officer wanting to consolidate bills
Debt Consolidators $14,000.00 @ 19%
Credit grade: C
Debt to income: 39% 33% Funded:
53 bids Expired
Jan-24-2007
Loan Officer wanting to Consolidate Bills
Debt Consolidators $14,000.00 @ 17.5%
Credit grade: C
Debt to income: 39% 2% Funded:
4 bids Withdrawn
Jan-23-2007
Need help til next week..
(No group) $10,000.00 @ 18%
Credit grade: C
Debt to income: 36% 0% Funded:
0 bids Withdrawn
Nov-27-2006
4 listings
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Am I to understand that this guy has not dug himself out of the hole by even one dollar in 2 months? What the hell has he been doing all this time? Blogging? Waiting for CAsey to put some gem on his web site that he could use to get him out of this hole?
Putting that little kid on the page is just gross misuse of the sympathy factor.
His debt to income ratio is higher and yet his debt hasn't changed. The slow way he started inching up on the interest he would pay also tells me that this guy is very tight with his own money, yet will spend other people's money in a snap. His APR is 21.24 and he is willing to give up 20%? Hmm wonder why..could it be because it would be harder for people to affect his credit score as opposed to the credit card company? This guy has Casey Serin written all over him...in fact I am surprised we haven't seen Casey here yet.
By the way who is Jerry the mortgage broker in the picture..I am thinking that is is the young as Casey and just as stupid kid with the shit eating grin on his face. So what is up with the old man then? Put a little bit of 'wisdom' in the picture? Or does he realize that most people would look at this young kid and say heeeeeell no.
I can see how this kind of thing happens, we moved in July and when I was mortgage shopping every rep or broker I talked to was filled with glee when I gave my down payment amount and income. They all tried to convince me to buy a 500k house because I "qualified" for a conventional loan for that amount due to low DTI and assets. They were all astounded to hear me say I was looking at houses at half that price.
12:15 PM, Legion said...
By the way who is Jerry the mortgage broker in the picture..I am thinking that is is the young as Casey and just as stupid kid with the shit eating grin on his face. So what is up with the old man then? Put a little bit of 'wisdom' in the picture? Or does he realize that most people would look at this young kid and say heeeeeell no.
The exact same thing crossed my mind, and I thought I was just being cynical. ;-)
@Rob,
I think your bang on about when he bought the houses. I did a quick look up on his payments and the only way he can be supporting that much debt on $9,500 a month is to be using a toxic mortgage of some sort. Even if he could get a 4.5% mortgage over 30 years his payment would still be close to 11.5K.
When his ARMs blow up, he's going to make Casey seem like a saint.
We need to stay in touch with this guy. We'll need something to do in a few months when Casey goes away.
Is there any chance that this guy sees the end of 2007 with that house (without filing for bankruptcy)? I just don't see it.
Its one thing to be in a tough spot--we've all been there. But its another thing to be sinking in debt and all you can do is try to forestall the inevitable. That's what this guy (and Casey) seem to be thinking. Do something really crazy to float the loan for another month and sudden windfall will change the equation. Unfortunately, very seldom do such things happen and is the process they've just incurred more debt that may too new to be discharged. If you're already employed and are unwilling or unable to work more hours in a second job, then there is very little that will change from one month to the next.
Prosper is great for helping responsible people get started on a business or out of a tough spot. But it seems that most people have no financial common sense and are essentially just looking for a handout to forestall the inevitable for another month. Its really too bad, but there's not much that anyone can do for someone in that situation.
-walt526
This teacher is just making ends meet because of his live-in girlfriend. Methinks he would be more likely to solve his problems if he stopped trying to get money through Prosper and instead spent his time looking for additional live-in girlfriends. He could start up a modern day harem. Agness could pay for utilities, Betty for the insurance, Louise for the credit card minimums, and Midge can help with the monthly mortgage nut.
Anonymous said...
We need to stay in touch with this guy. We'll need something to do in a few months when Casey goes away.
Wouldn't worry about that, there is an endless supply of Casey's over at prosper.
Legion. There will never be another Casey. He is the total package.
I dunno, that mortgage broker over there who make 13500 a month has 3 million in properties and has 650,00 in equity but can't pay off a 20K loan seems like he is full of the right amount of bullshit to give Casey a run for the money.
@Legion,
You are spot on here. It would be intersting to see how many Casey-esque individuals there are out there. If you subtract his equity from what he says he's worth you get around 2.3 mil in debt. This puts him right in Casey's ball park. Not only that, his $13,500 is total BS because it doesn't factor in his expenses. I would say he makes more like $4-5K a month - and that's being generous.
I wonder if we could entice this guy to put up a blog so we can compare their stories, would make for some great train-wreck entertainment.
From what I've seen on the very early credit analysis on Prosper, folks consolidating credit card debt have a much higher default rate than their vitals would indicate.
Rob, I think the crew should advise you on investing the tip jar funds there, in some sort of endowment for Habitat or something. With Homey, Heidi & co running verification we would probably have an advantage over the average prosper lender.
GO BEARS!!! Sorry, saw my alma mater on the front page...
Someone believes in the Prosper concept.
http://www.ericscc.com/index.php?page=topTenLendersByAmountInvested
Akubi:
You got me there. When you close a Blogger blog, they close everything down. I don't even have access to the dashboard.
Seems to me either somebody took the name and added advertising (with the hope all the people who find the URL click a link) because I've seen closed blog accounts and they just say stuff like Blog no longer active.
Weird. Does anybody think somebody decided to jump on the URL to keep me from using it again in the future?
The DTI calculation on Prosper does not include mortgages, but does include the proposed Prosper loan payment, which can explain the odd numbers on some listings. Also, since Prosper wants verifiable income, self-employed folks often list with $1 in the income box, which makes for some crazy DTI numbers.
Adam@2:30:
It only makes sense that folks consolidating credit card debt have unusually high defaults. I know most bankruptcies are driven by things like medical bills, but anyone who first runs up debt on credit cards and then turns to begging from strangers to help pay it back probably has some issues with budgeting and a lack of basic knowledge about finance.
@recondite
We could try but I think it would be too much work for him. I mean hell, signing up for prosper and putting down actual numbers instead of fantasy ones he pulled out of his ass is too much work for him.
Wow! The crime here is that this Finook is teaching our children. He's probably a math teacher to boot based on his math skills $3800 Take home
-$2100 House payment
1700 left WTF?
That 1989 Honda Accord ain't gonna last forever. And a diferent piece of ass every now and then doesn't come cheap either..Figure $300 for some decent tail.
aint no fooking way that this guy is gonna make it. He needs to quit screwing around and find some piece of tail that makes some cash and owns a home with a 30year mortage.
Hope it ain't underage tail....
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