"I am more than $200,000 upside down on my current home and the bank won't entertain a loan modification and I want out of this situation!"
This statement is pretty common these days.
It's hard to see your same exact home now on the market for HALF the price you paid for your home. It sure would be nice to have half the mortgage payment you have now for the same house!
The Wall Street Journal wrote this article that basically brought a hush, hush secret into the light. Every loan person knows how to do it! Banks turn their head and ignore the issue! Realtors practically endorse it! Now they want to change it?
If you are upside down on your mortgage and your mortgage was giving you some “issues" then there is a pretty good chance the thought to “Buy and Bail" has crossed your mind.
Buy- Keeping your current home and buying a new one
Bail- Once you close escrow on your new home you let your current home go into foreclosure.
Although the article states there are some changes being made to the guideline for lenders, I have been in and around the business on a daily basis I haven't seen any changes as of yet!
"So what does it all mean? How can I get it to work for me?"
(Let me state something for the record, I am actually against the “Bail" part of this as I believe you need to find out every option you have before you pack up and leave)
I will leave you with this, take advantage of this scenario but do so in an ethical way. The banks/lenders may not seem to be helpful on the outside but you can get them to work with you if the information is presented to them properly. Seek professional advice because that will be the difference between success and failure!
The Lane Group
I am located in Roseville, CA just outside of Sacramento and I have been in Mortgage and Real Estate since 2000. In that time I have been a Mortgage Broker working for my 4th company. I have closed over 700 loans in my time and I have seen many more.
I am not sure how to gain the title of Expert but I have to be close! I deal in mortgage “solutions" every day for a diverse group of people. You can find my personal BLOG at
http://www.thelanegroup.blogspot.com and you can contact me at email@example.com