Is there no way to verify someone other than by uploading a photo ID (or tax documents)? That's too much of a privacy risk (EDIT: ...just to sell a note. I'm ok with uploading an ID in order to borrow BTC). No offense, but larger and better-funded companies have been hacked and people's PII has been stolen (Home Depot, Target, US Govt employees, etc.). I don't believe that selling a note that someone owes me is worth uploading a photo ID.

How about a verified PayPal account?

If you can do this, I'll resume lending.