Why a Buy and Bail should never be an Option

Some homeowners feel that it’s only right to throw their old home straight into foreclosure and buy a new one because they feel tricked by mortgagers and/or banks. This is called a “buy and bail”.

While homeowners may feel that they’re emotionally on the right side of the court, it’s not exactly legal, and could be reason enough for a new lawsuit coming their way.

Buy and bails involve lies

When you go into buy and bail schemes, you essentially sign falsified documents and lie on load applications. Homeowners who attempt to do this can be facing serious cases of forgery.

This only means one thing: when you go into buy and bail schemes to try to get the better of your mortgager, you can end up behind bars.

Foreclosure always means bad credit

While you may think that going into a buy and bail helps you dodge the bad credit consequences of foreclosure, this is only temporarily possible.

Eventually, when your first home does go into foreclosure, all your other records will be scrutinized. In any event that the feds or your lender peeks into your buy and bail attempts, you will have to face forgery lawsuits.

Better option

It’s better to just face the consequences and accept your foreclosure penalties. Lenders are generally more forgiving when they see that the foreclosure was caused by grave circumstances like job losses or deaths.