Ah, you just can't beat some good corruption and scams when it comes to identifying the top of a bubble period. Classic.
Enron, Worldcom, Tyco followed by Mortgage Fraud, Toll Brothers insider selling and now this little story of a classic pump and dump (with loans going unpaid) scam
Alan Baugh's curiosity was piqued when the one-story, four-bedroom, three-bath home down the street sold quickly for far more than he thought it was worth.
The county taxed it at a value of $260,000, and the owners originally asked for $319,000, but it sold for $390,000 within a month of going on the market and remained vacant for months.
At least four other homes on a three-block stretch of Mr. Baugh's street in Prestonwood Estates have similar stories. The area has become either one of the hottest zones for eager investors or ground zero for a well-oiled mortgage fraud scheme.
Which one it is depends on whom you ask.
"In my mind, this is organized crime – with buyers, sellers and real estate professionals all cooperating with each other," said Mr. Baugh, a mortgage banker.
December 18, 2005
A good scam - another classic sign of a bubble top: Neighbors suspect scam in home sales
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5 comments:
how much would such a condo rent for (the $1.2m place)?
Payment on $1.2 million $7,165 at 6%. Add say $600 a month in taxes and insurance, and $600 in condo fees. That's $9,300 a month.
And you're thinking say $2,000 on the high side in monthly rent? Ok, go nuts, say $3,000 in rent. We're still not in the ballpark.
Houston, we have a problem.
Is the whole world smoking crack? Has everyone lost their freaking mind? Are there no sane people left?
Amazing.
I see examples like this all over the place too.
oh, think of the money the american consumer will wish they could have back (that they took out of the housing atm)
Those h2 hummers, the tiffany necklaces, heck, even the trash from china at wal-mart
in 2007, they'll wish they could return it all and get the cash back
and they'll miss the wealth effect of bragging to the neighbors about the $500,000 gain on their house, as it's back to where they started
it's soooooooooo 2001 all over again
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Read about this get rich scam.
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