re: Renting out property without mortgage holder's consent

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.

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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.

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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?

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Are you in a new primary residence or are you renting?

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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.

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If you are concerned,then you should check into refinancing it as a rental

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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

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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.

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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

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

Yes and most likely unless you have consigned

Just pay your mortgage on time, get a job and revisit then

Definitely change to a dwelling policy.

Why does this thread feel like a troll?

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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./

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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.

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.