I'm glad they didn't sell my 4+ lates for 2 cents on the dollar. I'll take my chances holding the notes.
You are the very atypical case. Far more representative is me -- I have 11 charge-offs, for $413.44. I just checked them all, and found that Prosper hasn't recovered ONE PENNY from any of them. So even at 2% from a JDB, that would be $8.27 more than I have now. And the past JDB sales were
MUCH more than 2% -- in December 2006, homeowner loans got 27-30% (and non-homeowner AA-D's got 15-18%, while even E & HR's got 3-3.7%). In May 2007, homeowners got 16-19%. In August 2007, AA and A's got 23%, while B-D got 13.3%, and even E & HR got 8.1%. At the final debt sale, in December 2007, homeowners got 12.5%, while non-homeowner AA & A got 9.6%, B-D got 9.1%, and even E & HR got 7.3%. And in April 2008, Prosper rejected an offer for 4.17% for homeowners, and for non-homeowners AA & A would have gotten 3.2%, 3.03% for B-D, and even 2.43% for E & HR. So my charge-offs would actually have netted me over $12 at the rejected prices.
Moreover, don't forget that it appears that Prosper actually had a higher offer than the one it rejected, which it refused to consider because it didn't like certain unspecified "conditions" -- possibly that Prosper would have to buy back confirmed id-theft loans (which it owed lenders a duty to do anyway, but which duty it has apparently repeatedly breached). Of course, the legal agreements which are fully binding on Prosper did NOT permit it to reject JDB offers because Prosper didn't like the "conditions" (or the prices, for that matter), nor did those legal agreements permit Prosper to unilaterally choose not to have JDB sales, which were REQUIRED by the legal agreements. And don't even get me started on the $500 that Prosper wrongfully cost lenders on one particular loan by rejecting a firm offer from a lender to purchase it for double the price Prosper actually accepted from a JDB.
