The taxes are in order for a renter, but I want to know what the bank can do? It's not an FHA or gov't loan. Best answer will go to the person that gives the most accurate info, links that would help if they also say what you say. Thanks
2007-07-20 11:47:40 · 5 answers · asked by EagleEye1 2 in Business & Finance ➔ Renting & Real Estate
I was originally going to live in the property, but I got a new job and had to move. It happens to people all the time.
2007-07-20 12:15:31 · update #1
The short answer is that the bank probably won't do anything if sleeping dogs are left to lie and a can of worms is not opened.
However, ask this on the free forum of experts on creonline.com.
2007-07-20 11:50:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I doubt they will do anything... My mom and dad had a owner occupant loan then ended up moving in with my grandmother for the last 17 years. They did call the bank and tell them it would now be a rental unit and they had to get insurance for rental property put on the house to be submited to the bank. Other then that they did nothing. I would check with them just tell them you want to know if you can turn it into a rental unit and what the penalties will be. I'm sure it varies from loan to loan and bank to bank.
2007-07-20 18:57:47 · answer #2 · answered by Nikki 3 · 0⤊ 0⤋
If you state that you are owner occupying and the bank discovers that you lied, you are subject to charges of bank fraud. Lying on a mortgage application is a federal offense.
Are you prepared to continue taking your mail at this rental property ? That's where loan communication will be sent if you state you are owner occupying. What will happen if you change you address with the lender ? HINT...they will figure out that you do not live there.
2007-07-20 18:55:14 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
If it's a conventional loan, the lender will likely not care. If it is financed by the government in any way, or was purchased through the HUD owner occupant program, you are subject to penalties.
2007-07-20 20:12:12 · answer #4 · answered by Venita Peyton 6 · 0⤊ 0⤋
You can speak to a mortgage consultant for free 24 hours 7 days a week at www.restructureyourmortgage.com they have successfully worked on several loans with similar situations to yours feel free to check them out. Best of luck.
2007-07-20 19:54:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋