I have a good story about this market. A friend of mine is doing this and he bought a $20M portfolio of bad boat loans for less than 1/2 cent on the dollar. He

I have a good story about this market. A friend of mine is doing this and he bought a $20M portfolio of bad boat loans for less than 1/2 cent on the dollar. He closes on the portfolio and the next day gets a call from a bank in Texas that has repossessed a boat in the portfolio and wants to know his address so they can ship it to him. He tells them to sell the boat ASAP and send him the proceeds. The boat sells for more than he paid for the entire portfolio. There is some gold in this muck. One word of caution on this is that to collect mortgage payments you have to be licensed as a bank in that state and some states have hefty penalties for illegal collection if you aren't.