If you know anything about this P2P lending please chime in.
I am curious, If I borrow say, $10,000 to help fund a purchase of a few acres of raw land. (because raw land loans are a pain to place for conventional banking institutions, or often require 25%-50% down) Will this loan with prosper actually act as an unsecured loan, like a credit card or will prosper draw up paperwork like my mortgagee?
Of course if I default they would put a lien against the land, thats not the question so stop thinking it is, the question is if I choose to get a construction loan a year or two later after I prep the soil, and use a portion of that funding to pay off my ballance to prosper, will it come up anywhere other than my credit report, will they come up in the title search, or will it show anywhere the loan with prosper was to secure this land and they own a part of it? I would like to get the construciton loan and be able to show them the land is MINE, but I have a seperate personal loan.
Tags: Credit Card, P2p, P2P Lending, Personal Loan, social lending
#1 by jamshed007us on January 5th, 2009 - 5:57 am
i would like to know that aswell
#2 by Wayne Z on January 7th, 2009 - 11:53 am
I am a lender on Prosper.
To the best of my knowledge, all Prosper loans are unsecured personal loans. No mortgages or leins are filed.
#3 by Doctor Deth on January 8th, 2009 - 5:33 am
check with Wachovia Bank - they only require 10% down for land I think - I was going to use them, but the land I bought had gas lease rights and they don’t deal with that kind of property.
There is no guarantee you’ll get approved for a land deal thru Prosper and it may take too long to get enough investors interested in the timeframe you need before the land gets sold - could take months if you even get full funding.
If you’re doubling up on loans for land and construction with none of your own money involved - you could be stretching yourself too thin and get in trouble like all the subprimers out there