I just read an article from the Press Enterprise telling its readers about acts of Fraud perpetrated on innocent Mortgage Companies. WHAT? These same mortgage companies that gave out bad loans like candy are now reported as the victim? The writer is less than objective and the article is nothing more than scare tactics. One commenter in particular was very astute at summarizing the real root of why buying a new home before letting your current home go back to the bank will never get anyone in trouble with the law or with their new mortgage company. In a nut shell: if you state you’ll be leasing out your current home and living in the new one, the lender really doesn’t care whether you actually lease it out or not. What he does care about is that you make your new mortgage payment; he doesn’t care what happens to the old home as long as you pay your new mortgage payment. Does anyone honestly think the new mortgage lender will say “Wait a minute; you let your old home go into foreclosure when you told me you were leasing it out...you lied so I’m going to foreclose on you too, even though you pay your mortgage payment on time every month.” Does anyone really think that will happen? No it won’t. The new lender simply wants you to make your payment...so if you loose your job, get a demotion or your pay is cut, as long as you keep making that payment the lender could care less about your situation. They are in business to make money not trouble for themselves.
Read it and Have a Good Laugh...Look for admirers comments
http://www.pe.com/business/realestate/stories/PE_News_Local_S_cheaters31.45b183a.html
http://www.pe.com/business/realestate/stories/PE_News_Local_S_cheaters31.45b183a.html
