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.
A claim on the decedent’s estate for the total outstanding loan balance will be made. The amount lenders receive will depend on whether there are sufficient assets in the decedent’s estate. With sufficient assets, lenders would receive their pro-rata share of the full amount outstanding. If available assets are insufficient to cover the full amount outstanding, something less than the full amount of the claim may be paid. If there are no assets available to apply to the claim, the loan would be defaulted with no value.