Home › Forums › Housing › Will honest people start doing dirty/crooked things to bail out of their houses
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zzz.
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October 11, 2007 at 4:25 PM #88214October 11, 2007 at 4:25 PM #88219
seattle-relo
ParticipantSo would it be considered fraud if the second home was purchased as rental property, then the owners decided to move into it, not rent it, and foreclose on it? Would that be illegal?
October 11, 2007 at 4:26 PM #88218ParticipantSorry, I meant foreclose on the old place, not the new place.
October 11, 2007 at 4:26 PM #88223ParticipantSorry, I meant foreclose on the old place, not the new place.
October 11, 2007 at 4:48 PM #88224gn
Participantseattle-relo,
It won’t be considered fraud or illegal. People’s lives change & their need change. They have the right to move around & switch homes.
One thing to consider: in most cases, the purchase of a rental property requires a 30% down payment & higher-than-normal interest rates (i.e. higher interest rate than the rate for a primary residence).
October 11, 2007 at 4:48 PM #88229Participantseattle-relo,
It won’t be considered fraud or illegal. People’s lives change & their need change. They have the right to move around & switch homes.
One thing to consider: in most cases, the purchase of a rental property requires a 30% down payment & higher-than-normal interest rates (i.e. higher interest rate than the rate for a primary residence).
October 11, 2007 at 5:09 PM #88230kev374
Participanthasn’t everyone and his dog pretty much refied at least once? If so most have recourse debt.
October 11, 2007 at 5:09 PM #88235Participanthasn’t everyone and his dog pretty much refied at least once? If so most have recourse debt.
October 11, 2007 at 5:28 PM #88238Critter
ParticipantHey GN, I was thinking the same thing. VC, weren’t you the one that posted many times over several threads about buying a Temecula house from your landlord for $350K or so? Is this the house you are talking about here?
October 11, 2007 at 5:28 PM #88243ParticipantHey GN, I was thinking the same thing. VC, weren’t you the one that posted many times over several threads about buying a Temecula house from your landlord for $350K or so? Is this the house you are talking about here?
October 11, 2007 at 7:14 PM #88252peterk2001
Participantwhat if you have a HELOC opened but haven’t touched any of the money yet, do you still have a non-recourse loan in place that you can walk away from, or does it complicate the process????
October 11, 2007 at 7:14 PM #88257Participantwhat if you have a HELOC opened but haven’t touched any of the money yet, do you still have a non-recourse loan in place that you can walk away from, or does it complicate the process????
October 11, 2007 at 7:37 PM #88256Bugs
ParticipantInasmuch as many of these borrowers have already committed loan fraud at least once, I’m pretty sure their inhibitions against doing it bigger/better by buying down won’t be very hard to overcome.
October 11, 2007 at 7:37 PM #88261ParticipantInasmuch as many of these borrowers have already committed loan fraud at least once, I’m pretty sure their inhibitions against doing it bigger/better by buying down won’t be very hard to overcome.
October 11, 2007 at 8:06 PM #88260NotCranky
Participant“what if you have a HELOC opened but haven’t touched any of the money yet, do you still have a non-recourse loan in place that you can walk away from, or does it complicate the process????”
The HELOC is a completely separate legal instrument from the purchase money deed(s). No problems if it wasn’t used.
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