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Is this a buy & bail if:

Posted on: 26th Apr, 2009 08:33 pm
1) If I have my wife buy a new home under her own mortgage and title while I'm bailing my current home that has only my name on both the mortgage and title?

2) How long can I stay at my current house after stopping payment.

3) We have been filing tax jointly for the past few years, will we get into any trouble in next year's tax return if IRS see my wife bought a home and I had a foreclosure? possible buy and bail mortgage fruad?

4) If she buy a home and move-in in 30 days while I stop my payment right now. Will IRS treat it as the "2nd" property so we will be charge investment property tax?
Hi Guest

The plan that you have stated above can be considered as a buy and bail mortgage fraud. As far as the taxes are concerned, it would be better if you could consult a tax assessor and take his opinion. The lender will start the foreclosure procedure once you are past due on your mortgage payments for 3 months.

Yes, the 2nd property will be considered as a investment property and you may be charged taxes on it.

Thanks.
Posted on: 27th Apr, 2009 04:33 am
1. Yes probably you can, if she can show that she can afford that house.
2. In this current situation, probably at least 6 - 12 months, without makign any payment.
3. Probably you will have a interestign situation, but better consult a tax consultant
4. Probably it is considered as an fraud, but you may get lucky
Posted on: 27th Apr, 2009 07:17 pm
Thanks for the responds!

If I stop my house payment, can I stop paying HOA as well?
Posted on: 28th Apr, 2009 03:17 pm
Hi Guest!

Welcome back to forums!

As far as I know, if you stop the HOA payments, they may place lien on the property. You will have to clear off the lien when you decide to sell the property. So, in my opinion, it is not a good idea to stop the HOA payments.

Feel free to ask if you have further queries.

Sussane
Posted on: 28th Apr, 2009 11:16 pm
Thanks! I think what I'm going to do is getting out of the house and rent an apt out there for a few month before buying another one under my wife's name. I don't want to get into any trouble. The only thing is I don't know the exactly date they want us out, will they give us any notice? anyone?
Posted on: 29th Apr, 2009 04:15 pm
Hi Guest,

After the foreclosure sale, you'll get a 3 day notice. You'll have to leave the property within this period of time. If you want some more time to leave the property, then you can negotiate with the new buyer.

Thanks
Posted on: 30th Apr, 2009 12:07 am
For all of you that think you are smart by putting the new home in the spouses name think again. When you file taxes the IRS will catch up to you and will most likely put a huge lien on your new home. You are still committing mortgage fraud. This show a lot about your character as well.
Posted on: 27th Sep, 2009 06:20 pm
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