If a man bought a home for $300K last yr and it is now worth $250K, can the wife buy it at auction?

In this declining market real estate market, are there any rules against hedging your own stake in a property? The home worth $250K would go for roughly $225K at auction....so if the couple put no money down and owed the full $300K.....can the wife buy it at auction and hedge $75k that they owe? This is assuming the wife was not already on title? It would take roughly 3 yrs for the husband's credit to restore itself, but I think it may be worth the "investment".

To first response.....husband is only one on deed, so wife goes to auction with intent of buying property. She would indeed need to qualify for a loan, but if she wasn't on first loan, the foreclosure would not affect her credit. Is there any legal recourse after the fact was my intent?

if this property at the auction, mean , that someone in foreclosure. You can not buy if someone own property. You need to close all financial obligations before can be bought again. if property on auction neigher husband wife are own this property. Mortgage company will go after both names on a home. both credit will be crashed by foreclosure for next years.

If just husband on title and mortgage, then wife can bid and try to win this house, if she will be financialy, i think actions required put some downpayment and in next 30-60 day to get mortgage if not pay in full.

playing with fire.

Legal recourse? Yes. If your wife has the money available to her to make the payments that you plan on stopping, it's called fraud. Possible prison sentence for both of you. Not alot of mention of this, but fraud is part of why we're in the mortgage mess we're in.

The FBI has noticed though, and they are acting upon it.

But even for someone legitimately losing his house to foreclosure, a near relative cannot buy it anyhow.