2009 Money moves: Buying and selling foreclosures

Updated

Making money on foreclosures and underwater properties is a growth industry.

Real estate speculators, who got us into this mess to begin with, are rubbing their hands in glee, reports Fortune magazine.

Billionaire John Grayken of Lone Star Funds, who first made his fortune during the S&L crisis in the 1980s, this July bought up $6.2 billion in distressed mortgage-backed securities. Now he's just waiting for the market to recover.

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