LEND may be a good short, but right now is a little too early for adding more to this in my opinion. And as another responder mentioned, the short interest is very high on this one.
I am looking at NEW for a future short prospect. NEW is another sub-prime lender and has been very resilient to the bad real estate news. It also has a much smaller short interest. Once it starts trending down (wait for it to drop below 50day moving average) I think it will be a good short play because it has a long way to drop.
But if you really want to take advantage of the real estate crash, the obvious play right now is to short home builder stocks. They have been clearly in a downtrend for some time and they still have a LONG, LONG way to fall. There is also a new homebuilder ETF that you can short called XHB, seems to be tracking the homebuilder index.
