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Author Topic: so you want some money for your pool...

l
  • Posts: 29
so you want some money for your pool...
OP: July 21, 2013, 11:00:00 PM

I wouldn't invest in this primarily because of the delinquencies.. but taking a second to read the details really makes me wonder...
https://www.lendingclub.com/foliofn/loanDetail.action?loan_id=4786190

Supposedly nearly 270k income... 
Home ownership: Rent
Loan description: ... ... to finance a pool...
Q & A ...  rent is 2000

So this person makes over a quarter million a year.. wants a loan for 30k to finance a pool at their home which they rent.

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S
  • Posts: 47
so you want some money for your pool...
#1: July 21, 2013, 11:00:00 PM

I really like to see a description of why they want the money and don't like it when its missing on Prosper.

And then again so many shoot themselves in the foot with a description I can see why so many leave it blank.   LOL
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T
  • Posts: 6588
so you want some money for your pool...
#2: July 21, 2013, 11:00:00 PM
This person is insane.

"Current rent is $2000, utilities and car gasoline average $1600 a month, and credit cards and other credit payments total a little over $4000 a month as we are paying more than minimums to get them paid off sooner. "

How on earth do you spend $1600/mo in utilities and gasoline??? Unless that weird punctuation/phrasing should be interpreted to include car payments (which would still be a pretty expensive car).

And they have $4000/mo in credit card payments with $80k in debt and they are looking to borrow another $30,000!? To finance, as you noticed, a pool on a property they don't own. Probably after they build it the landlord will raise their rent, because hey, now the property has a swimming pool!
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e
  • Posts: 42
so you want some money for your pool...
#3: July 21, 2013, 11:00:00 PM
Interest Radar information makes it even more interesting:
Rents, but has 15 mortgage accounts
1 Charge-off in the last 12 months
Last 90-day late account was 9 months ago
Total of 6 accounts ever 120 days late
But IR rates it 409/U
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T
  • Posts: 6588
so you want some money for your pool...
#4: July 21, 2013, 11:00:00 PM
I've found a lot of 40X/U IR scores among very high-income but otherwise really sketchy loans...
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m

mo

  • Posts: 32
so you want some money for your pool...
#5: July 21, 2013, 11:00:00 PM
Seems fraudulent.  They claim their employer is "Florida International University", a university in Miami, but they list their location as, "Fleming Island, FL".  In other words, their employer and location are literally on opposite ends of the state.

Since FIU is a public institution the names and salary information if it's staff are published information.  You can find a list of people making roughly the borrower's claimed salary ($269,004) here;

http://databases.sun-sentinel.com/Orlando/ftlaudosuniversities/ftlauduniversities_list.php?pagesize=100 

The closest one is over 7,700 off.  Not conclusive but really fishy I'd say.
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S
  • Posts: 31
so you want some money for your pool...
#6: July 21, 2013, 11:00:00 PM
The loan seems goofy, but I wouldn't make too much out of the salary info for FIU - any sort of dual income would make that chart useless.
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p
  • Posts: 20
so you want some money for your pool...
#7: July 22, 2013, 11:00:00 PM
One of my rules is that I won't fund anyone who makes >$240K/yr.  I, as one of 99%ers, don't want the top 1% earner defaults on my loan.  I can't take it.
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r
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L
  • Posts: 241
so you want some money for your pool...
#10: July 22, 2013, 11:00:00 PM

This is a sticky point about the 405-409s for me as well! 

I had to steel myself to "discard" many of them in favor of common sense.  Clearly I'm not a statistician.  I don't believe the "numbers don't lie" argument.  The lie depends on the question asked, among other factors.  After college statistics (and lots more) in the math department, educational training in standardized tests, and more chemical and physics lab work than I care to admit to, I can't help but look for flaws and their causes in reported data. 

Conversely, I don't understand some of the low scores for people who appear dependable to me.  I vote for them anyway and I'm glad their loan isn't funded yet!

That said, when I'm on the fence about a loan I'll let the score influence me. 

 
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J
  • Posts: 11
so you want some money for your pool...
#11: July 23, 2013, 11:00:00 PM
Recently read 'The Millionaire Next Door', which (among other things) gives a depressingly accurate description of high-income/low-wealth people.   The pressure to live in nice neighborhoods, and "look the part" makes it hard for them to live under their means, even if they have objectively high incomes.
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T
  • Posts: 6588
so you want some money for your pool...
#13: July 25, 2013, 11:00:00 PM
Yeah, this is one problem I have with the IR04 "U" score.  I understand that it means that one or more attributes are far enough outside the norm that the IR01 score skips them.  What I can't tell is how many attributes are not considered in IR01, or how far out those attributes are.
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c

cfb

  • Posts: 33
so you want some money for your pool...
#14: August 22, 2013, 11:00:00 PM
I'm rather late to this (reading through a lot of older posts to educate myself further) but I'm guessing the borrower is including income from the 15 rental properties in his annual income results, and is putting the pool into one of those rental properties.  They may also be paying the utilities on some or all of those properties, especially if they're condo's.  It would be unusual for a landlord to not pay common area fees, landscaping fees, water bill, taxes, etc.  Those aren't exactly utilities, but he may lump the costs together that way.

This is more like helping fund a small business than a home improvement.  He's may be putting the pool into a rental house as a pool is fairly desirable in Florida, and the borrower could get more rent for it.  If his rent improvement is equal to or higher than the monthly loan amount, its a win.
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