Walk away buy new house???????

[millr]

I don't see why a strategic default is fraud. Fraud involves lying. FWIW, Wikipedia mentions some ethical considerations, but no legal ones.

[justinbro2002]

walking away isn't a moral issue it is a business decision. You signed a contract that said you agreed to pay your mortgage payment every months. But that contract also spelled out what would happen if you fail to make your payment, the bank would take the house back and sell it to collect the debt. The bank was fully aware of this when they wrote out the mortgage contract and had you sign it. So both sides agreed to this and you are just doing what is within you right. Now depending on what state you are in you can run into a problem of still owning the money after foreclosure so walking away isn't a good option in these states. But some states they can only foreclose nun-judicially and you are left owning nothing except maybe taxes. You need to educate yourself on the ramifications of your actions before you decide to walkaway. Now if you wanted to B&B you may want to put the house on the market for a while and see if the bank will agree to a short sale. You could also do a Bail and Buy where you short sale your home and right away you can get another loan from FHA as long as you were current on your last loan for the last 12 months, the new home is not within a resonable commute to the last home, the new home is not superior to the last home.

[aneftp]

Originally Posted by justinbro2002

walking away isn't a moral issue it is a business decision. You signed a contract that said you agreed to pay your mortgage payment every months. But that contract also spelled out what would happen if you fail to make your payment, the bank would take the house back and sell it to collect the debt. The bank was fully aware of this when they wrote out the mortgage contract and had you sign it. So both sides agreed to this and you are just doing what is within you right. Now depending on what state you are in you can run into a problem of still owning the money after foreclosure so walking away isn't a good option in these states. But some states they can only foreclose nun-judicially and you are left owning nothing except maybe taxes. You need to educate yourself on the ramifications of your actions before you decide to walkaway. Now if you wanted to B&B you may want to put the house on the market for a while and see if the bank will agree to a short sale. You could also do a Bail and Buy where you short sale your home and right away you can get another loan from FHA as long as you were current on your last loan for the last 12 months, the new home is not within a resonable commute to the last home, the new home is not superior to the last home.

Legally this is not buy/bail. If you do not miss payments and get short sale approval, you can buy another home immediately. Usually it's those who have jobs at least more than 50 miles away from their previous residence.

But the percentage of people getting short sale approval without missing payments is probably less than 5%, maybe even less than that. Because banks want to know if you are in any financial trouble. If you are current on your mortgage, it's hard for the banks to grant approval on a short sale without missed payments.

[Debsi]

Originally Posted by aneftp

I understand your point. Most (if not all people) prosecuted for fraud outright lie about income/jobs etc. But if you fly under the radar and can prove to the banks you can successfully carry 2 mortgages than it's near impossible to prove fraud.

What the OP is trying to do is clear out fraud. But if you are subtle about it. Say rent out property for a year, than try to put it on the market and it won't sell and let it go into foreclosure, no way the DA's office or the banks can prove willful intent.

Now the OP wants to start defaulting immediately on old home after buying new home.....that's a little easier to prove.

You have a mortgage with bank 1.. You have great credit and the income to support your old mortgage and the new one you are applying for with bank 2. You know that you're about to wreck your credit on purpose, and will therefore no longer be the A paper borrower that you appear to be on bank 2's mortgage file. It's the intent that makes it fraud. It is probably pretty difficult to prove, as aneftp keeps saying.