What Does Short Sale Fraud Look Like? *Update 1*

I have been featuring 933 25th for a long time because it is a classic bubble reminder and it is a real mystery. The guy building it had a neighborhood party upon breaking ground and claimed he was building his dream home. But once the long process of building this giant monstrosity was complete, it was put on the market at a wildly high price. It has been listed a few times, prices have been cut but it never sold. It was apparently rented out...but then recently there were reports that the renters had moved out.

When I last featured this property, it was being listed as a short sale for $2.4mm. Like this thing or not, that is way too cheap and I suggested listing at a price like that and having it go into escrow right away smelled fishy.

Well, no short sale took place and now this thing is back on market asking $16k/month as a rental. According to Property Shark, the notice of default was filed on 11/30/10. When is the bank/lender(s) going to get real here? This house should be sold to the highest real bidder, losses should be taken and we should move on. Anyone have any additional info about this mysterious mcmansion?

**UPDATE**  -- One day after being featured, the rental listing for $16k/month has now been "withdrawn" from the MLS.