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A “buy and bail,” is when a buyer buys a new house before their credit rating is ruined by walking away from their old house. It’s an attempt to escape payments on a property that is already “underwater”, and move into a new home with a more affordable loan. The practice is fraud and usually used by people who have a job and low debt. It is still a problem even though Fannie Mae and Freddie Mac, the biggest U.S. mortgage-finance companies, have taken serious moves to prevent it.

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