Loans, Debt & Credit - View Single Post

thill23 · 08-22-2009, 07:10 AM

What it really comes down to is "intent" - you will see this word highlighted throughout my post. If your "intent" is to buy a new home and then bail on your existing home, then this could be considered fraud - clearly, the lender would not have originated the loan had they of known this was your intent. I can guarantee that they will ask what your "intent" for your current property is before granting a new loan. If you state that you intend to walk away, they will not grant a new loan.

Your "intent" should be to attempt to rent the house. Common sense - if you can rent the house and recoup your mortgage each month it's a no brainer, right? Buy your new house...list your current one for rent. If after a reasonable amount of time, you are unable to get a renter at a reasonable rental rate, contact your bank - explain the situation - see if they will work with you. Perhaps they will adjust the interest rate, reduce the principal, etc.. If not, hey, at least you tried - and clearly, your "intent" was to rent your current residence - not bail. If you have to walk away and default on your mortgage, this is not fraud - defaulting on a loan in America is not fraud. Don't destroy your credit unless it's absolutely necessary...you would be surprised - there are renters out there - loans are more difficult to get now. Even if you can recoup the majority of your mortgage payment, it's still not a bad deal to rent...and hopefully, over time, home prices will recover, and you can at least reach a point where you can sell and reach that break even point. And hey...again, as a worse case scenario, you can walk away - and this isn't fraud.

I see a lot of people here posting FBI logos, etc... save it for the banks that caused this mess. If anyone deserves to go to jail, it's the bank executives that created this crisis to begin with! People in trouble now aren't people who made bad choices and bought more than they could afford - many people in trouble now made good choices and are simply stuck because their houses have lost 30 - 50% of their value, thanks to the greedy banks that originated loans that never should have been! And these same executives didn't lose their jobs...they didn't go to jail...the continue to thrive, stealing our tax dollars and continue to make headlines as they allocate those tax dollars for "well deserved" bonuses for a job well done. So, save the scary logo - post it on B of A's web site, or perhaps AIG's...

08-22-2009, 07:10 AM	#17 (permalink)
thill23 Junior Member Join Date: Jul 2009 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Buy and bail ? What it really comes down to is "intent" - you will see this word highlighted throughout my post. If your "intent" is to buy a new home and then bail on your existing home, then this could be considered fraud - clearly, the lender would not have originated the loan had they of known this was your intent. I can guarantee that they will ask what your "intent" for your current property is before granting a new loan. If you state that you intend to walk away, they will not grant a new loan. Your "intent" should be to attempt to rent the house. Common sense - if you can rent the house and recoup your mortgage each month it's a no brainer, right? Buy your new house...list your current one for rent. If after a reasonable amount of time, you are unable to get a renter at a reasonable rental rate, contact your bank - explain the situation - see if they will work with you. Perhaps they will adjust the interest rate, reduce the principal, etc.. If not, hey, at least you tried - and clearly, your "intent" was to rent your current residence - not bail. If you have to walk away and default on your mortgage, this is not fraud - defaulting on a loan in America is not fraud. Don't destroy your credit unless it's absolutely necessary...you would be surprised - there are renters out there - loans are more difficult to get now. Even if you can recoup the majority of your mortgage payment, it's still not a bad deal to rent...and hopefully, over time, home prices will recover, and you can at least reach a point where you can sell and reach that break even point. And hey...again, as a worse case scenario, you can walk away - and this isn't fraud. I see a lot of people here posting FBI logos, etc... save it for the banks that caused this mess. If anyone deserves to go to jail, it's the bank executives that created this crisis to begin with! People in trouble now aren't people who made bad choices and bought more than they could afford - many people in trouble now made good choices and are simply stuck because their houses have lost 30 - 50% of their value, thanks to the greedy banks that originated loans that never should have been! And these same executives didn't lose their jobs...they didn't go to jail...the continue to thrive, stealing our tax dollars and continue to make headlines as they allocate those tax dollars for "well deserved" bonuses for a job well done. So, save the scary logo - post it on B of A's web site, or perhaps AIG's...