I wouldn't want to buy junk debt from Texas. They have laws there that are very favorable to bankruptcy cases, as does Florida. The laws are so overwhelmingly in favor of the debtor in Texas, I almost never bid on listings from there anymore and wouldn't even if the interest rates were higher again.
The loan I just got pennies on the dollar for was from Texas. I bid on it in February when I was new. He was behind on his mortgage and had tons of delinquencies. How stupid I was. He made 4 payments and then nothing.
The fellow is a banker. He probably knew what he could get away with. He said he was behind on his mortgage because his wife had been sick. Perhaps so. I think maybe he put the money from Prosper in a shoebox and didn't catch up the mortgage. He can't lose his house because of their homestead law; and if he made a few payments to Prosper, he couldn't be prosecuted for fraud. If push came to shove, he could always declare bankruptcy and keep his house and his shoebox with my money in it.
Well, I found out later about their lax bankruptcy laws. Florida is also lax. My guess is that the debt buyers don't pay much for junk from Texas. I wouldn't.
