As I've stated elsewhere, this loan really is an outrage for every lender that is on it (which does not include me). Any idiot should know that if you're going to just take the borrower's word that a BK has or will be filed (which is itself a rather poor idea), then at the very least you need to have a tickler system in place to verify within a few weeks at most (from official court records) that a BK was actually filed. This loan probably was eligible to have been sold to the JDB in December 2006 (I think there was a sale then), or at the latest, the first sale in 2007. The proceeds from those JDB sales were much higher than the most recent sale in December 2007 (and MUCH MUCH higher than the bids received last month), so the damages to lenders from the completely unjustified delay are probably a substantial amount (although the loan was only for $4K). Since this loan was clearly a Prosper screw-up, Prosper should have stepped up on its own and agreed to pay the lenders the diminution in JDB value. That's a no-brainer, it seems to me.
