We puchased an investment-rental home in Az in 05 for $340K, now worth $150K. We owe $292K. Trying to short sale.

We would like to purchase a retirement property for around 100K ,using cash and family funds, no financing.

Would this cause problems with the other property( Wells Fargo Mortgage)

Consult a real estate attorney and CPA.

Jacob Varghese

NMLS 327086

www.swanloans.com

Well...two questions here......can you? and should you?

I presume you voluntarily purchased the rental home in 05? Bank did not force you to purchase the property? No one forced you? Your idea?

You voluntarily attended a closing and signed a mortgage and a note agreeing the terms of the mortgage?

The bank (yea the bank) wrote a check and someone received that money under the trems of the note and mortgage you signed agreeing to pay them back.

And now. You decide you dont want to do it anymore. Not your problem? The banks problem? Shouldnt have leant it to you in the first place?

Ok. Well that is an ethical question for you to deal with.

However, apparently you have the means to come up with 100k elsewhere so that you can move on.  Stick the bank (and everyon else) with your decision to walk away....and use 100k to purchase something else....and not apply it to the shortage on your mortgage.

You are asking if you will get away with defrauding Wells Fargo. Since you are going to tell them that you cant come up with the funds at the short sale.

Thats what you are asking.  Maybe you can get away with it. I hope you dont.

Charles:

Did you disclose to Wells Fargo on your short sale package that you had access to $100k?  if not that is fraud.  Did you disclose to them that you are buying a new primary home?  If not that is fraud. 

What you are doing is definitely AMORAL and defines what went wrong with the real estate and mortgage market at the very least, and it seems like fraud in reality.  Go ahead and keep depressing the market and pointing fingers at other people.

Last time I checked the FBI investigates fraud.  I will be happy to call them for you.

To anybody who has ever bought a house, the process of buying is already confusing enough. Buying a house while at the same time selling your old house can be quite a feat for anybody. It can be a nightmare especially if you have no clue on how to do it right. You could end up owning 2 homes at the same time or selling your house without having a new house to move in to.

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