Today's F@cked Buyer (Fort Lauderdale -- Las Olas)

I am including this unit because even though it should not be a "F@cked Buyer" situation. However, this shows how some people profited handsomely off the irresponsibility of some lenders (lenders that Congress and Bush plan to bail out). This unit should have been "profitable" if it sells at its current price

333 LAS OLAS WY # 505, Fort Lauderdale, FL 33301

• 1 Bed, 1.5 Bath Condo
• Bought in January 2005 for $299,000
• On the MLS for $399,000
• Possible profit before the Realtor® commission: $100,000
• Possible profit after the Realtor® commission: $76,060

This is what could have happened, but will not. Instead, soon after closing on this unit, the "owner" took out $515,000 in mortgages on this unit through a 80/20 piggyback ARM -- in other words, he put $216,000 of cash in his pockets (before transactions costs) by "buying" this unit.

Now, this "owner" is trying to sell this through a short sale. If it sells at this price, the loan holder will lose $139,940 after paying the Realtor commission.

So, if this transaction completes at this price, the "owner" walks away with $216,000 minus transaction cost (might be worth the 7 years of ruined credit). In turn, the loan holder is out at least $139,940.

Ultimately, I doubt that this unit will ever sell, especially at this price. Instead, it will probably go into foreclosure and the loan holders lose even more.

On a side note, the $515,000 mortgage was granted to the "owner" despite an outstanding $20,000 judgement against him from AMEX.

You can see the documents related to this transaction by clicking here.

I need your help with this daily feature. Do you know of a F@cked Buyer? Just add the MLS number or the FSBO link in the comments section and I will add it to an this daily update in the future.