ANOTHER BUYER SCAM UNCOVERED

Due to the housing and economic downturn in many parts of the country, the mortgage industry is seeing an emerging trend where homeowners are purchasing a new primary residence with the intention of letting their previous property go into foreclosure. During the loan process they claim they will rent the current residence but after closing they default on it. Because of this phenomenon, referred to as “buy and bail,” lenders have come out within the past week or two with new guidelines that are making it more difficult to count rental income to qualify for a purchase.