What is Wrong With Buy and Bail?
What is Wrong With Buy and Bail?A reader asks: We purchased our home several years ago without finding out much about the neighborhood, which has turned out to be less neighbor and more hood, so we can’t sell it now. My wife says her hairdresser told her about a plan where we could buy a new home, pretend to rent out our existing home and, after our new loan closes closes, stop making payments on our old home. She called it ‘buy and bail.’ This sounds too good to be true. Is there something wrong with buy and bail?Answer: Buy and bail is the result of buying a new home with the intention of bailing on the old. It is considered mortgage fraud. Even extenuating circumstances do not give a home owner the right to commit mortgage fraud. What are Extenuating Circumstances for Buy and Bail? Sometimes home owners feel justified because
