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re: Renting out property without mortgage holder's consent
Posted on 6/27/14 at 7:16 pm to Mr.Perfect
Posted on 6/27/14 at 7:16 pm to Mr.Perfect
The first house I bought I got a 1st time home buyers grant. The grant said I had to live in the home 9 years or pay back the grant(pro rated). Lived in it one year and then started renting it out. Homestead was dropped and the insurance policy was changed to a rental dwelling policy. I paid all payments on time and never heard a word out of anybody about it being rented. The home is now paid for and I have owned it 22 years.
Posted on 6/27/14 at 8:56 pm to weadjust
My wife and I both did a similar situation, but it was a 3 year requirement.
It's worked out great so far.
It's worked out great so far.
Posted on 6/28/14 at 9:22 am to Fearthehat0307
My advice to you is to stay off the phone to Wells Fargo. Pay them their money every month or refinance it as a rental property you will pay more in interest but you would above board with everyone.
Posted on 6/28/14 at 9:30 am to Teddy Ruxpin
quote:
shite, I wasn't even aware the mortgage holder could keep you from renting. Well, "could" is a wrong word, I just didn't think it was prevalent. Sort of like how I've never run into a loan that had a prepayment penalty.
Failing to use and occupy the property as a residence is almost always an act of default under residential mortgages. Most mortgage companies honestly don't care as long as they are getting paid. Especially the large services. /not legal advice./
Posted on 6/28/14 at 9:55 am to StrangeBrew
quote:what I gather from this thread is pretty much as long as you pay your mortgage it should be all good. my concern is them finding out if I switch insurance or/and do a lease purchase agreement. wouldn't they find out then?
My advice to you is to stay off the phone to Wells Fargo. Pay them their money every month or refinance it as a rental property you will pay more in interest but you would above board with everyone.
Posted on 6/28/14 at 10:26 am to Fearthehat0307
quote:
my concern
Things do not exist in a vacuum. If you are concerned,then you should check into refinancing it as a rental. This does not have to be done through wells. Go online and check out what the options are. Are you in a new primary residence or are you renting?
If you did not purchase the home as owner occupied with your true intent being to turn it into a rental, you did not commit fraud. I do not know what your mortgage contract states so I can not comment on the letter you received from Wells.
Posted on 6/28/14 at 10:33 am to StrangeBrew
quote:I just finished grad school at LSU and just started job hunting so I likely will be leaving BR but will rent an apartment wherever I land unless in the Lafayette area where I will likely temporarily stay with friends.
Are you in a new primary residence or are you renting?
quote:can you explain this process to me I am not familiar with it at all? what would I need to do, how much of an increase in monthly payment can I expect, how long would this process take? any info would be helpful
If you are concerned,then you should check into refinancing it as a rental
quote:I've lived here for almost 3 years and never intended to rent it but wasn't able to sell it in the need time frame
If you did not purchase the home as owner occupied with your true intent being to turn it into a rental, you did not commit fraud.
Posted on 6/28/14 at 10:46 am to Fearthehat0307
Do you plan to change ownership to an llc to avoid liability?
Are you worried about liability involved w renting house as an individual instead of a legally separate entity?
Are you worried about liability involved w renting house as an individual instead of a legally separate entity?
Posted on 6/28/14 at 11:11 am to GulfCoastPoke
let's say I go ahead and do a lease purchase agreement. what do I need to avoid to keep wells fargo from finding out? what i'm really trying to find out is what should I avoid doing or who should I avoid talking to in order to make this work.
should I not change my insurance? (seems very worrisome if something would happen and I end up have to cover the whole cost)
would signing a lease purchase agreement be ill advised?
should I inform the renters that i'm technically not allowed to rent it out? (in case something goes wrong)
appreciate all the help in this thread
should I not change my insurance? (seems very worrisome if something would happen and I end up have to cover the whole cost)
would signing a lease purchase agreement be ill advised?
should I inform the renters that i'm technically not allowed to rent it out? (in case something goes wrong)
appreciate all the help in this thread
Posted on 6/28/14 at 11:11 am to Fearthehat0307
Refinance Rental Property - Rates
This post was edited on 6/28/14 at 12:49 pm
Posted on 6/28/14 at 12:16 pm to StrangeBrew
quote:if I can do it, refinancing into a rental property seems like the perfect way to go. i'm not sure I'd be able to qualify though. is the process similar to getting financing for the original mortgage loan? I was employed at the time but haven't been for the past year because I was in grad school and had enough money saved up to last but I am currently job hunting as I just graduated last month and have no income coming in. I think that would keep me from being accepted right?
Refinance Rental Property - Rates as Low as 2.75% (2.79% APR)?
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Posted on 6/28/14 at 12:50 pm to Fearthehat0307
Yes and most likely unless you have consigned
Just pay your mortgage on time, get a job and revisit then
Just pay your mortgage on time, get a job and revisit then
Posted on 6/28/14 at 1:46 pm to StrangeBrew
quote:in the meantime should I just rent it out without consent? I want to do that but unsure how to approach it. do I keep it on homeowners insurance and risk it? do i inform the renters about what i am doing? the couple i'm renting to her brother is a realtor and she asked him about doing a lease purchase agreement so he called me and we talked about it. would it be a bad move to inform him of the situation?
Just pay your mortgage on time, get a job and revisit then
i don't know who to call an ask these questions to without putting myself possibly at risk and no one i know seems to have any idea. sorry for so many questions
i need to let the renters know soon what's going to take place
This post was edited on 6/28/14 at 1:47 pm
Posted on 6/28/14 at 3:57 pm to Fearthehat0307
Definitely change to a dwelling policy.
Posted on 6/28/14 at 4:31 pm to Fearthehat0307
Change your insurance, read your mortgage, and profit if there is no provision for non owner occupied.
As for as lease to own I would not enter into such an agreement especially with a real estate professional without consulting an attorney.
As for as lease to own I would not enter into such an agreement especially with a real estate professional without consulting an attorney.
Posted on 6/28/14 at 10:40 pm to StrangeBrew
Why does this thread feel like a troll?
Posted on 6/29/14 at 9:55 am to rmc
quote:
Failing to use and occupy the property as a residence is almost always an act of default under residential mortgages. Most mortgage companies honestly don't care as long as they are getting paid. Especially the large services. /not legal advice./
Sad part is I'm a lawyer...Good news is I wouldn't nail you on the legal advice.
I always figured the "non occupation" was more along the lines of lack of maintenance and abandonment. But whatever floats their boat.
This post was edited on 6/29/14 at 9:56 am
Posted on 6/29/14 at 10:22 am to StrangeBrew
quote:
Why does this thread feel like a troll?
quote:wtf? why would you guys think this is a troll?
I agree, I am done!
Posted on 6/29/14 at 10:23 pm to Fearthehat0307
Because you keep asking the same questions after they've been answered. Change your insurance and keep making your payment, Wells Fargo isn't going to do anything as long as the payments are made. They have to deny your request in a CYA way for a myriad of reasons, mostly due to liability if they sell the servicing rights and the loan defaults after that date - if they told you it was ok to rent, but sold the loan as owner occupied, they would be forced to buy the loan back. You're thinking way too much about this. As for the lease-purchase, usually not a great idea for a couple reasons. One, the transaction would be very complicated unless you pay off Wells first. Two, the insurance scenario gets complicated if you don't pay off Wells, which it doesn't sound like you can do. Just rent it, if they get to a point where they can qualify for mortgage, great, sell it to them. Otherwise, just rent.
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