Posted on: 30th Sep, 2009 05:34 pm
why are people still getting away with buy and bail. I know someone right now that has their 1st mortgage through Fannie Mae and is purchasing a 2nd home with a FHA loan. he is planning on bailing on the 1st after he closes. I thought FHA was preventing this from happening. please advise. I am sick of these unethical people.
fortunately our area is not hit with anything like what you describe. however, i don't know how fha or any other agency is going to be able to prevent such an occurrence. if someone wants to abandon a home badly enough, i don't imagine anyone is capable of stopping them.
yes, we are all sick of unethical people.
yes, we are all sick of unethical people.
Hi Guest,
It is true that FHA has come up with strict rules regarding buy and bail. The FHA lender, like others, would check out his credit score, income and other details before approving his loan. In this case, I doubt that the concerned person would qualify for a loan. However, there are certain exceptions in this regard. If the person is relocating with a new employer or is being transferred by the current employer to an area not within reasonable commuting distance is exempt from this rule if they meet the other requirements.
It is true that FHA has come up with strict rules regarding buy and bail. The FHA lender, like others, would check out his credit score, income and other details before approving his loan. In this case, I doubt that the concerned person would qualify for a loan. However, there are certain exceptions in this regard. If the person is relocating with a new employer or is being transferred by the current employer to an area not within reasonable commuting distance is exempt from this rule if they meet the other requirements.
