If you take out a loan and use ‘tricks’ to prevent the lender from knowing about the other mortgage, you are guilty of fraud 18 USC 1014 — look it up.
penalty: fined not more than $1Mil, imprisoned not more than 30years.
If you enter into a new purchase while simultaneously intending to default on the old.. you may be guilty of conspiracy to commit fraud as well.
Now if you think that the ‘defaults’ will make it easier.. you are wrong. Watch what Fannie/Freddie are doing. The spread between Treasury rate and lending rate is increasing. This is known as risk premium. Because of people defaulting and pulling tricks like you support, the banks see increase risk in lending and will increase the risk premium put on all loans and mortgages. The result is that is really screws everyone.. no happily ever because mortgage rate will go sky high. Also, you need to remember where the bank is getting the money to lend.. it is from your pensions and savings. Remember: Banks operate with ‘other people’s money!’.
