Posted on: 14th Oct, 2008 11:39 am
I understand the rule about the subject property being a primary home or "homestead". But what we have run into is a situation where the borrower has disclosed that the subject property is now an investment home but is still labeled as his "homestead" since it is the only home he owns. The title company will not close close this loan unless we call this an (a)(6) refi since the county still shows this as homestead, but it is NOT his primary. Has anyone encountered this? :?
hi dianne,
welcome to forums.
if the borrower has disclosed the property as an investment property, then it will be better if you inform the county about this and record this as an investment property. i understand that you will not be getting the homestead exemptions, but this will save you from the legal complications in future.
you can also ask the title company why they want the (a)(6) refinance. they will definitely tell you the reasons.
thanks.
welcome to forums.
if the borrower has disclosed the property as an investment property, then it will be better if you inform the county about this and record this as an investment property. i understand that you will not be getting the homestead exemptions, but this will save you from the legal complications in future.
you can also ask the title company why they want the (a)(6) refinance. they will definitely tell you the reasons.
thanks.
I feel so bad when I see people provide full disclosure and then banks slap them in the face for it. It's like they prefer people to lie to them.
I agree at this point in order to get the loan done he will probably have to disclose to his county that it's an investment property. Worst case scenario he can do the refi and then claim homestead exemption once again after it's done.
I agree at this point in order to get the loan done he will probably have to disclose to his county that it's an investment property. Worst case scenario he can do the refi and then claim homestead exemption once again after it's done.
