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Buying and dumping are people still able to do this?
invite response
2009 Aug 29, 7:18am 3,326 views 3 comments
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Through the miracle of government intervention in the free market. Va/Hud is the new Fannie/Freddie. Until they blow up also.
HeadSet
2009 Aug 29, 2:56pm
Are you saying that to qualify for the VA loan, they are claiming a rental income for the condo they are currently in?
Also, it does not pass the smell test. When applying for a VA loan, all existing loans would count against the amount that your wife's friend could borrow. With the unretired condo loan, two sets of car payments, and only a $70k income, they would be lucky to qualify for a $100k loan.
RC2006
2009 Aug 30, 5:49am
My wife and I were perturbed about it to say the least; I told her I would believe it when I see it. Her friends have been doing everything the wrong way, but is it? We just recently gave up looking, signed a new lease and decided to save. Its bull that people that try to go about doing things properly get screwed and end up propping up all these people that cheat the system and cause problems for all.
I thought people couldn’t do this scam anymore. Wife’s friend is going to buy another house with a VA loan and then dump their condo that they are underwater on by 150k or 50%. They have little to no down and said they would make it look like they are renting it and once they get the new home they are going bail on the upside down one. I think its bull but it looks like they already have the loan lined up and are looking for a new house. They don’t make more than 60-70k and are making payments on two new cars, how are they getting a loan?