Interesting.
Either the credit market's tanking really are having a significant effect on the resale value (in which case they should not have held off on quarterly sales). Or iLie's statement that the longer these loans stay delinquent the less they are worth on the resale market is extremely accurate.
You would think that if the prior defaulted loans were of value, the prior purchasers would be jumping at these loans. But they aren't. Prosper said they received a record number of bids for the portfolio, but they are too low due to market conditions.
Honestly, if the credit markets are so bad, sitting on these loans are not going to increase the loan value in any reasonable amount of time. If I am wrong about this, please, somebody point this out to me. Otherwise, I would think Doug Fuller knows this & lend credence to the speculation that prosper is sitting on these loans so that their performance metrics don't tank.
+2 points to Doug Fuller for at least being responsive & telling us what is going on.
Prosper.com as a whole? I'm glad I chose stocks.