[flatulent1]

In some cases those profiting from the earlier higher priced sale of a property, and the commissions, were committing fraud. One of the story links indicates that Toxie was connected to a known case.

A realtor flipped a property back and forth between friends multiple times, it being sold for a higher price each time. The banks were happy to make the loans on the property that was increasing in value. The people involved shared the gains along the way, then the last one defaulted. The selling back and forth could happen normally... it seems the fraud was in the parties obtaining loans for an owner occupied property. It was apparently empty the whole time.

These people didn't need an economic downturn to default. It was planned.

http://www.npr.org/blogs/money/2010/07/23/128720556/atc-flip...