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
Posted by blogger at 12/18/2005