Social Lending

What prevents you credit on a social lending site??? Could I lose my money?

One of the most popular loan is Prosper.

Can you lose your money? YES.

Here are the pitfalls:

1. It may take a week to transfer money in and out of Prosper.

2. Once you "bid" on a loan of your money is locked. It may take days before knowing whether you actually funded a loan or your money back to try again. (For some loans, the submission rate is bid down the loan looks good. Thus, while the loan application can begin to say 35%, the final loan can be 22%. The borrower can expect 15% and may decline the loan.) Until you've actually paid money, you do not win anything about it.

3. The loans appear set for a 3 years. While some borrowers pay their loans early, most will not make extra payments or early. Prosper has no secondary market, so that you can not sell the loans to someone else and move on with your life.

Prosper has not even been in existence for 3 years!

4. Borrowers may be late on payments. If it goes to collections, you'll be hit with fees.

5. Even AA loans. These are unsecured loans, so once a default, you have a capital loss. Although Prosper sells the loans to collection agencies, they do just to get loans from their books. They sell for pennies. By default can occur at any time, but it seems to happen a lot in the 1 year mark.

6. The economy was in better shape last year and Prosper had a fairly high rate end default /. The economy is worse this year ....

I'm looking for someone to lend me money because I had a bad year and no business lending will help me. I can assure you that I will repay with interest. We could write a contract and get it looked at a lawyer. I am not trying to scam you, I'm just desperate. My gas was cut for over a week and will be at least one month before I can get my bill every made. It is still very cold where I live and I have not been able to take a hot shower. I'm sorry, I do not want to panic but if you want to lend money and believes it would be ready for me, I promise on the grave of my father that I will repay every penny, plus interest . Please send me an email if you are interested. yddupuis@hotmail.com

What keeps me? I just live at ease about housing affordability and gas. As great as this is what you do, I can not afford it.

My first thought would be yes. It might not be a guarantee to recover.