Mesa, Arizona - The Buy and Bail Scheme Is Still Alive And Well!!!

By
Real Estate Broker Owner with Teri Ellis at Homes Arizona Real Estate LLC

Recently I received a telephone call from a Realtor from another state. He introduced himself, told me he had found me through Active Rain, and knew so and so, and so and so - yada, yada......

After we had finishFor Saleed with our introductions, he told me he had a client that had a home in Mesa, Arizona, and they wanted to find someone to list it for them.  As I began to question him on the circumstances of the sale, he said that the sellers just “needed” it listed. I prodded him further asking if they had taken out a second and if they were upside down. He said, "yes," and basically needed it listed in order to complete their purchase of a home through him.

He further went on to tell me that they didn’t really care whether they sold it or not, and heFraud didn’t need a referral fee. Sound fishy? Yep, to me it did – and it was.

I told him this: “they are buying another home and bailing on this one,” aren't they? He hemmed and hawed, and pretty much acknowledged this to be true - actually he "thought" it "might" be the case, but “he didn’t know for sure.” 

I told him that it is mortgage fraud  knowing when you purchase one home that you are walking away from the other one!! You see, I have very strong feelings about this type of mind set. (See my previous post written in June 2008 on the Buy and Bail phenomena.)  NO WONDER we are in such dire straits in America!! Guess who picks up the tab? US!!! People don’t think twice about their obligations to keep their promises – AND – this agent had never heard of the Buy and Bail scheme. Maybe yes, maybe no!! Hopefully all Realtors are aware of this egregious behavior and DO not assist buyers/sellers with transactions of this type.

 

Mesa, Arizona Real Estate. Call me at: 480.216-3334 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit one of my websites: HomesAzRE.com, ServingMesaArizona, MoveToMesaAz.com or MoveToSunnyAz.com. Or stop by my blogs at: MesaAzRealEstateVoice; or Phoenix Valley Real Estate Blog

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Re-Bloggged 6 times:

Re-Blogged By Re-Blogged At
  1. Liane Jamason 08/05/2009 08:11 AM
  2. Dana Devine 08/05/2009 08:39 AM
  3. Phil Romanow 08/05/2009 09:37 AM
  4. Edie Cooper 08/05/2009 09:40 AM
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  6. Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers 08/15/2009 06:20 AM
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Topic:
Real Estate General Information
Location:
Arizona Maricopa County Mesa
Groups:
Arizona Homes
Diary of a Realtor
Phoenix Arizona Real Estate
Posts to Localism
REALTOR LIFE
Tags:
mesa
arizona
buy and bail
teri ellis
buyers
sellers
arizona real estate
homes arizona

Comments 139 New Comment

Rainer
53,839
David A. Weaver
Purchase - Refi - Conv - FHA - VA - USDA - HARP
Bank of Arizona, N. A.

Hi Teri,  I  just finished the first of a series of four blogs where I will detail the guidelines to enable an underwater homeowner to legally convert their current residence into a second home or an investment property.  Being here in Arizona I get those calls every day or so.  You might find it helpful to know the lenders rules to make it happen.  Here is the link: http://activerain.com/blogsview/2365494/how-to-get-out-of-your-underwater-house-and-live-to-tell-about-it-.  Check back with me next week for part dos.  I hope you find this helpful. 

June 24, 2011 10:10 PM
Rainmaker
63,934
Kimberley Rosenstein
Superior Service
HomeSmart

I look foward to reading your series on guidlines Teri. 

 

September 26, 2011 10:54 AM
Ambassador
1,055,107
Mark Taylor
602-361-0707 #MarkTaylor #Awesomerates NMLS#207897
and for 1st Time Buyers, Move Up Buyers & Investors


October 15, 2011 10:20 PM
Rainer
7,845
Ann DeWolf
ADT Security

Teri,

 

Thank you so much for sharing this. I have been appalled at this practice ever since I first heard people were doing this. Really, just dump your responsibility for one home and walk away from your obligation and walk right into another home! I really hope Realtors will not assist people in these transactions.

 

Ann DeWolf

ADT Security

September 27, 2012 04:18 AM
Rainmaker
412,157
Mesa, Arizona Real Estate Mesa Arizona Realtor
Teri Ellis at Homes Arizona Real Estate LLC

Ann, right on! Hard to believe isn't it? Hopefully the lenders are more savvy about this stuff than they were at the time I posted this. ;-)

 

September 27, 2012 11:21 AM
Rainmaker
412,157

Mesa, Arizona Real Estate Mesa Arizona Realtor

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