Borrower Death

If a borrower with a Prosper loan dies, the executor or administrator of the borrower's estate must send proof of death (a death certificate) and proof of authority (a letter testamentary) to Prosper.

Upon the death of a borrower, it is possible that the borrower's Prosper loan will be paid in full by the estate. In this case, lenders will receive their pro-rata share of the outstanding principal, interest, and fees accrued. If the borrower's Prosper loan is not paid in full by the estate, Prosper will sell the loan to a debt buyer as soon as is practicable. Proceeds from the sale of the loan will be distributed pro-rata among participating lenders. Loans in which the borrower has died will receive a special status on the lender's loan accounting screens.