Documenting false income to gain a new mortgage is a crime

Q. I will try to make this short. I bought my condo in 2006. My mortgage rate becomes adjustable in 2011. I am upside down $85,000. I originally bought for $435,000; it's worth $350,000 now. I have no problem with the payments now, but I fear when they adjust it will be too much.I already applied for a loan modification to a fixed rate and was denied through my lender. I can't come up with the difference for a refinance. I have heard of the "buy and bail" idea. Morality plays a big role, but my future financial situation plays a bigger one. Any advice?A. "Buy and bail" is a practice some homeowners have used to get out of a fix when prices have dropped and they owe much more than their home is worth.If they just walk away, their credit will be trashed and they won't be able to buy another home. So, they tell a bank they'll rent out the old house, and to prove it, they produce a fake lease. This "rental income" helps them qualify for a mortgage on a new home. They move, then stop payments on the old house and let it go into foreclosure. By the time their credit is ruined, they're all set with a mortgage on the new house.Buy and bail isn't just immoral. It doesn't just trash your credit. More to the point, it's illegal. Presenting a false document to the lender constitutes mortgage fraud. Lying to a federally-chartered lending institution is not simply a misdemeanor, it's also a felony - and the FBI is investigating more than 50,000 cases.Since you ask my advice, I'll suggest you forget the whole idea. You're better off than many homeowners who really must move. Just hang in there. If you're lucky, interest rates will still be at their present lows when yours adjusts in 2011.My question is my ex-husband and I divorced seven years ago. He signed over the house and the title is in my name. Both our names are still on the mortgage and my payments are all current. He keeps pressuring and threatening me to refinance. I'm not financially able to do that and do not want to sell. Can he make me?A. It's understandable that your ex wants to free himself of liability for that old mortgage. It's still on his credit record as his debt. But if you're the only owner, he can't force you to refinance or sell.There may be a way out. If you can prove (canceled checks?) that you've been making the monthly payments on your own, sometimes the lender will take your ex's name off the loan and release him of liability. It would only be right, of course, for him to pay whatever document fees might be involved.I've been giving this advice to people over the years. If you try it, please do let me know what happens; I'm interested in hearing whether it really works!I decided to fire my agent after potential buys fell through because he mishandled negotiations. I am now interested in a property that I visited with him. Can I contact the listing agent directly and share the commission if the buy goes through?A. You can't share a commission because you're not licensed. If you had a written buyer's broker contract with your first agent, that document will tell what obligations you took on. If you didn't hire that agent in writing, you are free to work with anyone, including that listing agent. Be sure to explain the situation when you contact him or her.Whether your first broker would claim a share of commission, and whether he would receive it, is not your concern. It would be settled between the brokers involved.The house I am considering has the street address number "13." The house seems to be on the market longer than similar houses in the same area. Is "13" a number to avoid, especially when you have to consider you may have to sell this house in the future?A. Some people won't buy a house with that street number, so you may be able to pick up a bargain if it doesn't bother you. Then if you had to sell at a discount, it wouldn't matter so much.Or perhaps, after you move in, you could petition the local authorities to change your number, assuming there isn't already an "11" and a "15." Or if there is, perhaps you could ask for "111/2."bull;Edith Lank will personally respond to any questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.2009, Creators Syndicate Inc.