“Buy and Bail” homeowners find ways to get past loan restrictions. Real estate professionals call it “buy and bail,” acquiring a new house before the buyer’s credit rating is ruined by walking away from the old because it’s “underwater,” or worth less than the mortgage. It’s an attempt to escape payments on a home whose value may never recover while securing a new property, often at a lower price with a more affordable mortgage.
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Why do homeowners do this? Many may believe they are just “working the system” and so it’s okay. When did it become “okay” to deliberately breach a contract? That is exactly what a “buy and bail” transaction involves.
This is not to denigrate in any way those Tehachapi or Kern County area homeowners that are legitimately looking for help to resolve their mortgage issues. Some of those actions may include hanging on if you can possibly make the mortgage payment, investigating refinance possibilities, considering a short sale or even a foreclosure.
If you find yourself “underwater” or even if you’re not sure, call, text or send an email from the Contact page to discuss your options. As always, feel free to share your thoughts down below regarding this topic. How many of you agree that “Buy and Bail” is wrong?