patrick.net

Did cash back at closing exist in late '08?
This 1288sqft. 3/2 starter is already
a short sale one year later. I thought
it was strange because the house was
listed in the high 5's($590 I think)
Went pending then back on the market
at least once over the several months
it was listed in '08. Then it sells
for $620 ... way over comps. Maybe there was
a bidding war (real or imaginary). I doubt a
legitimate bidding war because this
house like all the other 1288sqfters
in this neighborhood is as starter as
it gets in San Ramon and there was
not much action here in '08.
The house has some upgrades, but now
comps are in the $400,000s. I will
be curious to see what it goes for.

I wouldn't be surprised if it was arranged to rip off the bank (ultimately taxpayers).

Maybe someone overpaid $620 for it with the deal being that the seller pay him back $100K or so, and the seller keeps another $100K profit, or something like that.

Then the buyer demands a short sale from the bank, and gets out with his profit.

Yeah ... Not only do inflated appraisals rip off taxpayers through eventual bailouts, they also inflate the prices in a neighborhood, making it a longer, more painful wait until prices come back to reality.