On the morning shows - abandon your home

[ghrousseau]

That seems to be increasing in popularity. Here is a link to an article posted in June (AZ local news) repeating a WSJ article. http://www.azcentral.com/realestate/articles/0611biz-BuyAndBail-11.html
I have also read on other Forums where many realtors and agents post comments supporting this. What most are doing, is getting a signed rental agreement for the 1st property to qualify for the second. Then walk away from the 1st. Some lenders are catching on and FNMA has changed to require a minimum of 30% equity in the first. My opinion, it's a new type of fraud being encouraged by agents looking for another source for commissions.

Yes. My company is now requiring a rent survey from an appraiser on the proposed rental property and we run an AVM on the proposed rental home for a rough check on equity. We have declined several FHA deals for this very reason. Lenders and investors are aware of the scam. I think brokers pretend they don't know.