Buy and bail scams are huge after the 2008 crisis. Buy and bail lawyers can help. Buy and bail involves acquiring a new home, before you walk away from a home that is already underwater. The purchase of the new home happens before you walk away from the old home. Buyers do this to get the new mortgage before the foreclosure on the existing home goes on their record. Buy and bail scams can leave a bank with a financial loss, when foreclosing on a home you’ve walked away from. Some consider this unethical – but it’s not illegal. Buy and bail only breaks the law when you lie on the new loan application.
If you lie to get a loan, you will face serious consequences – including state penalties, which involve mortgage fraud, and federal penalties for bank fraud. If you’re charged, you have options to defend yourself. Our NYC buy and bail fraud lawyers work extremely hard to help you avoid being convicted of a crime.
When homeowners are underwater on their loan, and owe more than the house is worth – it’s hard to make payments each month. In most cases, homes before the 2008 crash were overvalued. This means some houses may take a decade to recover it’s worth – based on what it’s estimated value was before the crash. Homeowners have a difficult time to get out from under the loans for these houses. Many homeowners want to get away from the house, and walk away from the irresponsible lender who gave the loan – which resulted in the collapse of property prices.
The problem is, it’s difficult to walk away from a home – and get another loan, within 2 years of the foreclosure. Homeowners who don’t want to wait this long, typically apply for a new mortgage – and then move into the new home before defaulting on their old one. The issue is walking away from a home, and lying to get a a new loan – is a fraud. Mortgage companies have strict requirements on new residential loans, which includes proof of sufficient funds to pay mortgage on both the old and new properties. If you lie, make misstatements, or false/misleading statements on the new loan application – then you may be accused of fraud, and will need a buy and bail lawyer.
Buy and bail can be a huge problem. New York prohibits residential mortgage fraud, and has different degrees of it defined. The amount of funds you receive through th eloan determine what class felony it will be. When funds exceed $1 million, it’s a 1st degree mortgage fraud – and Class B felony. Mortgage fraud in 5 degree, is a Class A misdemeanor – if you receive funds less than $1,000.
When charged with federal bank fraud, you can also be charged with wire fraud, mail fraud, or more.