Tanta over at Calculated Risk (I'm a huge fan) had a very appropriate commentary on borrowers who get in over their heads.
I remain convinced that there's something wrong with blaming the financially inept for not realizing that they are financially inept, when those who are supposed to be financially ept--loan officers, brokers, financial counselors, advice columnists in business publications--spent the last several years refusing to tell them that they were financially inept.The replies to Tanta's remarks are equally interesting for thinking through it all.
Of course people who are in over their heads are surprised. They lacked the skills necessary to understand what "over their heads" might mean.
Prosper lenders, you need to be responsible for your money (as mortgage brokers should've been responsible). Lenders need to be comfortable that the borrower understands their finances, or they need to walk away from the bid.