Foreclosure and Second Properties
What Does it Mean to Buy and Bail?
Buying and bailing on refers to the act of buying a second property and allowing a first home to fall into foreclosure. Homeowners who purchase second properties in this scenario are typically upside down on their primary residence, meaning they owe more on their first home than it is worth in the current market. It's likely that they had an adjustable rate mortgage and their monthly mortgage payment grew to a payment they could no longer afford. For some, an easy solution appears to be buying a second property at a depressed price with a fixed rate mortgage in order to lower their monthly mortgage payments. At the same time, they let their first home fall into foreclosure รป hence the term buying and bailing.
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1 comment:
The problems is that this is very risky - especially in this market situation. I bet this is not the best option but can be considered depending on the owner of the property and the bank who owns the property. Realtors in South Carolina can also give you this options as a last one rather than just going into foreclosure of the property.
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