8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 30, 2007

PROSPECT ACQUISITION CORP.

(Exact name of registrant as specified in its charter)

Delaware	333-145110	26-0508760
(State or other	(Commission	(IRS Employer
jurisdiction of	File Number)	Identification No.)
formation)

695 East Main Street, Stamford, Connecticut, 06901

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (203) 363-0885

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item8.01 Other Events.

On November 30, 2007, Prospect Acquisition Corp. (the “Company”) issued a press release announcing that separate trading of the Common Stock and Warrants included in its Units listed on the American Stock Exchange under the trading symbol PAX.U, will begin separate trading on December 3, 2007.

Item9.01 Financial Statements and Exhibits.

(c) Exhibits.

99.1 Press Release, dated November 30, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly authorized and caused the undersigned to sign this Report on the Registrant’s behalf.

PROSPECT ACQUISITION CORP.
By:	/s/ David A. Minella
	David A. Minella
	Chief Executive Officer

Dated: December 3, 2007

EX-99

                                                                                                                                         Exhibit 99.1

PROSPECT ACQUISITION CORP. ANNOUNCES SEPARATE TRADING

OF COMMON STOCK AND WARRANTS

STAMFORD, CT, November 29, 2007— Prospect Acquisition Corp. (AMEX:PAX.U) (the “Company”) announced today that, commencing on December 3, 2007, the holders of the Company’s units may elect to separately trade the common stock and warrants included in such units. Those units not separated will continue to trade on the American Stock Exchange under the symbol PAX.U, and each of the common stock and warrants will trade on the American Stock Exchange under the symbols PAX and PAX.WS, respectively.

Prospect Acquisition Corp. is a newly organized blank check company formed for the purpose of acquiring, or acquiring control of, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination, one or more businesses or assets, which we refer to as our initial business combination, in the financial services industry, which includes investment management firms.

The sole-bookrunning manager and lead underwriter for the initial public offering was Citi and Ladenburg Thalmann & Co. Inc. and I-Bankers Securities, Inc. acted as co-managers. Copies of the final prospectus for the initial public offering may be obtained from Citi, Brooklyn Army Terminal, 140 58^th Street, 8^th Floor, Brooklyn, NY 11220 (tel: 718-765-6732; fax: 718-765-6734).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities of the Company, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

All questions and inquiries for further information should be directed to David A. Minella, Chairman and CEO of the Company. He can be reached via telephone at 203-363-0885.