This is the same exact situation we were discussing in the “new kind of fraud” and the listing in 92011 Carlsbad threads (sorry, don’t remember exact post topics).
FWIW, I called the FBI the other day to see if this was indeed fraud, because urbanrealtor and DaCounselor (among others?) said there was nothing fraudulent about the deal. The FBI is checking into it, and I will post here when they get back to me.
Again, I wouldn’t have a problem with it if all the lenders were taking the hit themselves; but these days, it’s the taxpayers who are paying for everything…not to mention all the people who will suffer as a result of all the fraud that’s occured over the past decade or so. This recession/depression is a direct result of speculation, fraud and lack of regulations/enforcement of laws in the lending industry.
