Piss off your neighbors- Follow up

A while ago I posted on this place, titled how to piss off your neighbors.
This property on Milos drive:
http://www.redfin.com/CA/Huntington-Beach/18862-Milos-Dr-92648/home/3835443
Since coming out with a price that was $70,000 lower than your neighbors there’s been a few twists to this property. After starting out with a price of $530,000 they dropped it quickly to $498,000 a little over a week later. At first I said Wow..They really want to sell. Two days later they dropped it to $459,000 and I began to wonder. Was this done to get multiple bidding going? Now they are approaching 2003 prices on this.
Just to keep it up on people’s mailings and radar they dropped it again $1,000 to $458,000.
So what gives? Under the notes that the realtor sees the listing agent wants to have it close by Aug. 19th. Ok, what planet do you live on that you can get banks, inspections, and what not coordinated to get it all done in less than two weeks? Even with an all cash buyer it would be difficult at best.
My guess is that the NOD, oh did I fail to mention that? Let me back up then. This guy has received a NOD. How the heck do you get a NOD when you have that much equity built into it unless you’re an idiot?
If this were Jeopardy it would go like this:
I’ll take new cars for $50k Alex
I’ll take European Vacations for another $10G Alex
I’ll take shopping spree for another $25k Alex. And so on.
My guess is they tapped out the equity like so many others now they can’t pay the piper.

And since you’re going to default anyway you might as well rent it out to someone and see if you can get some rent money while you’re at it. That’s right, for the past 6 months they have been pulling in the rent money. Now the tenants are getting the boot and these characters have only a blemish on their credit report.

The listing agent, (we believe them don’t we?), says that the list price covers the back payments, interest and everything they owe so there isn’t any additional costs. Sure, if you say so.
Someone might jump on this one but I hope they are careful. Otherwise back to the bank you go.