[faith]

EnergyAZ,
Welcome to this forum,
Before you do your plan, let me inform you that Buy and Bail is a Mortgage Fraud and the FBI and the IRS is hard on them and the penalty is huge so it's better to let go of the house.


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. Homeowners who plans to walk away but wants to buy a house and falsified loan documents and deliberately lied on his loan application. That is mortgage fraud. Mortgage fraud happens when a borrower withholds information -- such as a deliberate intent to stop making payments to another creditor -- or falsifies information -- either of which would cause the new lender to reject the loan if the lender knew about it.


As a result of buy and bail practices, Fannie Mae guidelines now require buyers to qualify for mortgages on both homes at loan inception, unless the existing home has plenty of equity. That's because a home owner with plenty of equity would be foolish to walk away from it.
Sometimes home owners feel justified because they believe they were duped when they bought their existing home. Buy and bail involves lying. It typically involves drawing up a phony rental agreement and presenting this false documentation to the lender.

It's also considered fraud to lie on a loan application and produce false documents to the lender. The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."

Please search the net about Buy and Bail and the EXTREME consequences. We care about you so please be careful.
Thanks,