BUY AND BAIL

CAN I BUY A HOME NOW AND SHORT SALE MY HOME AFTER I CLOSE ON THE NEW HOME PURCHASE?

There is no law stating that you cannot short sale your home after the acquisition of a new property, although most lenders have underwriting overlays and safeguards to prevent such action.  The industry has coined this term “buy and bail” – essentially taking advantage of market conditions to purchase a new home at the bottom of the market, and then liquidating your current home and asking the lender to take a loss.  Although this is a frowned upon practice - it is rapidly gaining in popularity and some lenders even advertise to grant you financing with this pretense.  Also known as “buy and retain”.

Please contact us for more information pertaining to this topic.