HUD Issues Cautionary Notes on ‘Buy And Bail’ Scam, and Treble Damages
October 11, 2008
The FHA is urging lenders to be vigilant in fighting a new mortgage scam that appears to be taking root in the market: homeowners who buy a new house as their principal residence and then default on the mortgage on their previous home. In Mortgagee Letter 2008-25, the Department of Housing and Urban Development warns FHA lenders about the “buy and bail” scheme in which...