Fleecing of America? Banks keep writing bad loans because the GOV keeps bailing them out. Let me show you one such deal I just stumbled on.

 10701 Susan, Boise ID last sold 6/30/07 for $173,000.00 and then began selling short 3/28/2008. Yes, that's only 8 months.

Will the lenders ever learn? No money down doesn't work.

They keep writing the loans and then writing them down. If you think about it, it makes sense. The government keeps feeding the problem. It it sort of like being a crack addict? Your money going to work for someone else. Sweet!

Wondering where it's located? 

This property was a notice of default. Set for auction 12/3/08. 

It just SOLD AGAIN FOR $140,000. 
Great little investment for someone at that price. It should rent for $800-$900.

Just how many payments did the seller make in the time they owned? I say SIX. Since we know you can't sell short if you're making the payment, we can figure the payments made by looking at the auction sale date of 12/3/08.

 Let's start at the beginning. The home closed 6/30/07 and the first payment wasn't due until August 07. Then they paid Sept, Nov, Dec, Jan, Feb, March... put the home on the market 3/28/08. No payments for April, May, June, July, Aug, Sept, Nov, Dec. Notice of Default get's filed about July. The price of $150,000 goes on the home back in April. Eventually they get an offer and sell short at $140,000, closing Dec 1, 08. 

I calculate the bank wrote down about $85,000 after closing costs and the short sale process not to mention the time value of money and lost opportunity. That's about 1/2 of the original loan amount. 

Ready to find your own little investment? Give me a ring!