Posted on: 22nd Mar, 2013 12:24 am
i had a property which was my primary residence. i even had a mortgage on that property. but due to financial reasons i had to give it on rent. now i just found out that my equity line of credit was not for rental property. i can’t even refinance due to loss of job. please advice!
It is true that most lenders will put an acceleration clause in the mortgage docs in order to stop you from renting it. As you have rented the property, the lender may call the mortgage due immediately. Unless the lender comes to know about this, you won't be in trouble. However, once he comes to know, he may freeze the credit line. There's hardly anything that can be done.
There isn't much that can be done in your situation. You can only hope that the lender doesn't come to know immediately.