My wife just got off the phone with her sister. Apparently her husband’s sister and her spouse (who live in Central CA) bought a new home at the peak of the market. They are in escrow on a brand new home which is bigger, and the mortgage will be less, walking away from their current residence in the process. I know that rules were put in place to prevent this type of behavior, so I suspect that, the future home being brand new, the buider is probably providing funding and is ignoring the old property. Can anybody help clarify if this is an accurate hypothesis? And if this is in fact legit…how absurd!!!

readytopurchase - 20 October 2009 09:01 PM

My wife just got off the phone with her sister. Apparently her husband’s sister and her spouse (who live in Central CA) bought a new home at the peak of the market. They are in escrow on a brand new home which is bigger, and the mortgage will be less, walking away from their current residence in the process. I know that rules were put in place to prevent this type of behavior, so I suspect that, the future home being brand new, the buider is probably providing funding and is ignoring the old property. Can anybody help clarify if this is an accurate hypothesis? And if this is in fact legit…how absurd!!!

*If* escrow closes, feel free to drop a dime on them.

Yeah, because while we were getting prepared to look for a new home and rent out our current home, we learned about the equity requirement, signed lease in place, etc. to prevent people from walking away from the departing home. So, we’ll see…

Without outing anyone, what city in Central California?  I’m from a little town between Fresno and Bakersfield you’ve otherwise likely never heard of…

Manteca.

Ah, the 909 of the Bay Area…

If the home builder is doing the loan themselves, they might be desperate enough to ignore the other house.