Buy and Bail- Is this the new real estate trend?
June 11th, 2008 categories: Phoenix Foreclosures, Real Estate News
Here is an interesting article from azcentral.com.
With prices continuing to decline in the Phoenix Real Estate Market , ARM’s adjusting, resulting in increased payments, homeowners with good credit are looking for homes to purchase, at half the value of their current home. After they close on their new home, they simply walk away from the home that is now upside down in value.
What do you think of this emerging trend?
Hi Jamie,
The AZ Republic got their article idea from the WSJ
http://online.wsj.com/article/SB121314811278463077.html?mod=residential_real_estate
this was in yesterdays paper. If you look hard enough you will find people bucking the system in any market.
Jamie,
This whole “scam” makes me crazy, and I wonder how some people sleep at night.
@Dru- Here is some updated info from one of my lenders regarding this
“Mortgage News: FannieMae announced earlier in the week they will no longer accept lease agreements on current homes. The borrower will have to be approved with both payments and have 6 months reserves. The timeline is soon and the guidelines are forthcoming. “Buying and Bailing” will be curbed.