Posted on: 22nd Sep, 2010 10:29 pm
Just noticed a clause that says we have to owner occupy our house (just did a refi and still have time to cancel it) within 60 days and for twelve months. Well, we have lived in our owner-occupied home (us being the owners) for over six years and owned it for ten (we originally bought it as a second home, rented it out, then occupied it, remodeled and refinanced) We just did a refi from 6% interest to 4.5% which is great BUT read this clause about having to live her 12 months. We are wanting to relocate (for various reasons none of them financial) and plan to put the hosue on the market this summer. But don't expect to sell maybe for a few years, as we will not accept a loss at this time and market sucks. Anyway, we want to rent it out winter rental, then vacation home rental. Should we cancel our refi now? Sure don't want them to say we're in default if we not living in it. We won't be buying any other house, just staying with my elderly folks, and renting a place elsewhere for now. Nothing is written in stone. What should we do?
Hi starrynight,
If there is a clause mentioned in the loan docs that the property should be owner occupied, then it's better to cancel the refinance as you'll be placing the property on rent. There are chances that if the lender finds that you don't occupy the property, he may call the mortgage due immediately and may even sue you for the debt.
Take care.
If there is a clause mentioned in the loan docs that the property should be owner occupied, then it's better to cancel the refinance as you'll be placing the property on rent. There are chances that if the lender finds that you don't occupy the property, he may call the mortgage due immediately and may even sue you for the debt.
Take care.
I don't agree, Sara. The summer of 2011 is a long time from now, almost a full year, and I wouldn't worry about running the risk of the lender snooping to see if you're still living there, starry.
Go ahead and take advantage of the low rate, do what you need to do next summer and don't be too concerned. It's so close as to be a full year, and if you don't end up moving out before 12 months elapses, then it won't even be a consideration. What your plan is can always be subject to change, so just run with what you have for now, and relax - now that you've hit an age where you ought to be able to sit back and enjoy, just do that!
Go ahead and take advantage of the low rate, do what you need to do next summer and don't be too concerned. It's so close as to be a full year, and if you don't end up moving out before 12 months elapses, then it won't even be a consideration. What your plan is can always be subject to change, so just run with what you have for now, and relax - now that you've hit an age where you ought to be able to sit back and enjoy, just do that!
