My wife just got off the phone with her sister. Apparently her husband's sister and her spouse (who live in Central CA) bought a new home at the peak of the market. They are in escrow on a brand new home which is bigger, and the mortgage will be less, walking away from their current residence in the process. I know that rules were put in place to prevent this type of behavior, so I suspect that, the future home being brand new, the buider is probably providing funding and is ignoring the old property. Can anybody help clarify if this is an accurate hypothesis? And if this is in fact legit...how absurd!!!