One scenario. Agent finds a straw buyer and an appraiser willing to inflate the price of the home. It gets financed 100%, no money down. Agent, appraiser, and buyer get a kickback. Buyer will end up with trashed credit, but may have gotten 100k and a house to live in for 6-8 months before the foreclosure because, of course, he never makes a payment. Some spiraling into drug addiction who still has good credit would make an ideal straw buyer, it would seem.
Bubble Tracking has been discussing this, detailing some suspicious looking deals. And they’re naming names too.