buying a new home and trying to sell the first home.

[*abc123]

HI. We need to move to another area because of my son's medical condition. So we are trying to buy a house in a few months in this area. However, we are staying in this current home that we got a permanent modification last month from our mortgages. My question is that after we move into the new house and put the current one up for sale and if it doesn't sell and if we can't afford both mortgages at that time, can we do short sale and not being considered mortgage fraud?
Thank you.
We are in california.

[jakelabry]

Why don't you rent in the new area and dump the old house through sale/short sale? California is looking at more double-digit decreases in home values and you want to buy another house?! It's not fraud, it's just not very smart.

[michaelinAZ]

I have a similar situation and wondering the same thing. I currently live in Arizona and I have been informed that my position will be eliminated so I have accepted a job in another state. I would like to buy a home in the state I am moving to and short sell my current home.

Currently I have an FHA loan and it is my understand that moving to an area that is not a reasonable commuting distance is a reason for a short sale. I have looked at rental property in the state I am moving to but it is much more affordable to buy than rent. I am trying to keep my monthly expenses as low as possible.

Any thoughts?

[Daisy Cutter]

short sale isn't mortgage fraud. The mortgage fraud is when you buy a new house and then in the next month walk away from your first (underwater) house. Even then I don't know if there is any kind of actual law they can pursue you for or if they just **shame** you to death for doing a buy and bail.

Shaming people into doing things that are against their self interest doesn't work too well! It didn't work too well to get the banks to do mortgage mods either.