PHOENIX -- Realtors say a new 'buy and bail' trend is causing home values to drop accross the Valley.
Marleigh Manzo, a realtor with West USA Revelation, said it's happening because homeowners are faced with a difficult dilemma.
"Do you stay in a home even if you're $250,000 upside down or do you have the income to buy another one?" she asked.
Manzo said she's had homeonwers ask her flat out to help them buy and bail, saying, "We want to buy and we're going to let this one go."
She said she refuses to work with them because she considers the practice deceitful.
In 2008, she said this practice was a lot more prevalent, with loose lending.
This year, she said buyers are being much more sly.
"It's people with money," said Manzo.
People, who loan officers say on paper, can afford two mortgages, have 30 percent equity in their home and have six months savings.
"Last year, it was different, everybody was bailing because they could and there was no regulation in the lending industry, now there is," Manzo said.
But she said there are genuine second home buyers with good intentions who think they can rent their first home while paying a cheaper second mortgage.
Regardless, she said, "It'll hurt the bank in the long run, it hurts the neighborhoods."
Buy and bail is considered mortgate fraud, but it may be hard to prove.
"Unless you can prove there was intent," said Manzo.
