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As a Realtor or lender, how would you respond to a "Buy and Bail" request?

Mortgage and Lending with MetLife

In the "Wall Street Journal", recently, there was a lengthy article on the practice of buying and bailing called "Some Buy a New Home to Bail on the Old". Technically, it is not illegal unless the borrower misinforms the lender about a lease or real intention. Basically, the new buyer has the intention of letting the old home be foreclosed AFTER puchasing a new home at a better payment and equity position. It apparently is a growing trend and FNMA is closing the "loophole" by toughening standards - again. What do you think? Is it legal? I am sure you wouldn't do anything outright illegal - but this is on the brink and can be argued both ways. Tell me what you think!

Jean Terry
Keller Williams Realty Spartanburg, S.C. - Spartanburg, SC

Hi, and welcome to Active Rain, a great site to network, share, learn, and have fun. Good Luck.

Dec 10, 2008 07:37 AM
David Painter
Keller Williams Realty - Spartanburg, SC

Good to have you on Active Rain.  This is a good site for gathering information and interesting to see what others are blogging about.

Dec 10, 2008 02:16 PM