“How will walking away from your morgage affect your credit score and ability to buy a home in the future?”
I don’t know how it would affect your credit in the long run, but I had a conversation recently with a (seemingly) well to do person/beautiful home - that didn’t set well with me.
This man was having a garage sale, we started talking, and he told me he had just bought another home in the same neighborhood. I noticed the realty sign in his yard and congratulated him on being able to sell - and he told me the house didn’t sell - that he was “letting the bank have it back.” During our conversation, he made it clear that he had bought the second one at a bargain price with this in mind. He was one of those braggy types and seemed so proud of himself.
I wonder how often this happens. But I suppose if you qualify on paper and have the ability, you can do this and probably get away with it. It may come back on him but he didn’t seem to care.
>>he told me he had just bought another home in the same neighborhood. I noticed the realty sign in his yard and congratulated him on being able to sell - and he told me the house didn’t sell - that he was “letting the bank have it back.” During our conversation, he made it clear that he had bought the second one at a bargain price with this in mind.>>
He would only have been able to purchase the 2nd home for cash. Therefore, he now has an asset, and the bank will place a lien on it. I don’t see how this scheme would succeed.