More details to this question:
If a person take out a refinance loan on their home. Didn't not intend to payback wanted to move so they let the house go into foreclosure. Is it against the law to refinance and not pay. Take the money and run type.
1 ANSWER
If the intent from the beginning of the loan was to take the money and run, I guess technically it would be a crime. However, the prosecuting entity (federal or state government) would have to prove what the intent of the borrower was from the beginning which might be difficult to prove if the borrower does not admit anything. However, if the bank had the house as security and was able to foreclose and get its money back, then it would suffer no loss.
Answered on Mar 26th, 2016 at 1:40 AM