The other day I stumbled across a blog (I honestly don't even remember how I got there... one of those "click on a blog and then a blog on their blog and then a blog on that blog) that was talking about their plans to "Buy and Bail" on their house. I wasn't sure what this meant so of course I googled it. Turns out its a recent trend.... people are buying a house (either together if they qualify or in one spouses name ) and then bailing on their current home that is upside down in this market.
Now... I know a LOT of people with their homes on the market. I actually think most of my friends have their houses for sale and I know a number of bloggers who do as well. The market sucks. I feel for them because a decent sale price is not exactly promising. I thank God everyday that we took the offer we got on our old house and sold when we did. Sure, we lost quite a bit of money, had to pay at closing, but I wouldn't trade our new house for anything.
But.... what if we hadn't sold. What if we'd thought we'd hold off for a better offer. What if we were still in our 900sq foot home with 2 kids and 2 dogs? Would I consider this new trend? Ruining one or both of our credit just to get out from under a house we'd outgrown?
I guess in some situations it might make sense... such as if someone is losing their house because they can't afford the mortgage payment. Or if they are reloacting for a job and are unable to sell the old house. I guess I could possibly see taking the Buy and Bail route. But what I was reading on this blog... they just didn't like their old house. They owed too much and it wasn't worth nearly what they owed. So they wanted to buy in on the cheap market and then let their old "unliked" house go back to the bank. Ship their keys back to them.
WHAT? Am I the only one that sees this as nuts? I guess I am not in their shoes and maybe I'd think differently if I didn't love my home. But I can't help but thinking that voluntarily foreclosing on your home, ruining your credit voluntarily, is such an irresponsible thing to do. Not to mention all these "voluntary forecloseures" are not helping the market any... in actuality they are HURTING the market. And does it even matter that is is FRAUD?
So, what do you think? Have you heard of this "Buy and Bail" method before this? Would you ever consider it?