FHA Moves to Stop “Buy and Bail”

As the nation’s housing mess has rolled out, more than a few media reports have provided anecdotal evidence to support the idea that some borrowers are buying new homes for less money and then immediately defaulting on their current principal residence — called a “buy and bail,” most of the borrowers doing this are hopelessly underwater on their current mortgage. And they’re having to lie about receiving rental income on their current home in order to do it, in many cases, too.

To read the complete story, please visit: http://www.housingwire.com/2008/09/24/fha-moves-to-stop-buy-and-bail/