Owner Occupancy Agreement - Posted by Charles

import · December 10, 2002, 6:41pm

Posted by River city on December 12, 2002 at 09:11:28:

Lenders typically charge higher interest rates for investment properties than for primary residence properties because of the risk. The lender could make you pay the difference in yield spread on the loan. One question, did you purchase your original home owner’s insurance policy as owner occupied or non-owner occupied?

Some lenders have the loan allocated to an investor before it is even closed. Others may take longer. Most lenders I have worked for shipped their loans to the investors within a couple days after the closed loan file was returned from the settlement agents.

import · December 10, 2002, 6:41pm

Owner Occupancy Agreement - Posted by Charles

Posted by Charles on December 10, 2002 at 19:41:42:

I recently closed on a property that I intended to live in, but my circumstances changed and now I need to either sell or lease it ASAP.

Problem: I signed a standard OOA that says I’ll move in for a minimum of 1 year.

If I sell or lease it anytime soon, “industrywide” what is the liklihood that the lender will exercise legal recourse?

If so, what are my options?

Thank you very much in advance for your response and advice.

Charles

import · December 11, 2002, 12:54pm

selling is usually not a problem… - Posted by David Krulac

Posted by David Krulac on December 11, 2002 at 13:54:17:

its when there is the appearance of fraud that the lenders get critical about. And if your loan was sold on the secondary market, loan fraud becomes a federal offense.

import · December 11, 2002, 9:36am

Re: Owner Occupancy Agreement - Posted by River City

Posted by River City on December 11, 2002 at 10:36:01:

I believe your only recourse is to write the lender a letter and explain your situation. If the lender believes you, they will probably work with you. Did you ever move into the home?

import · December 12, 2002, 1:40am

Re: selling is usually not a problem… - Posted by Charles

Posted by Charles on December 12, 2002 at 02:40:14:

What constitutes fraud that they would actually bother to investigate and process?

Based on your second comment, would they be less concerned about it (and less likely to pursue it) if I sold it before they sell the loan on the secondary market?

And if so, what is an average timeframe from closing the loan to selling it secondarily?

Thanks.

import · December 12, 2002, 2:12am

Re: Owner Occupancy Agreement - Posted by Charles

Posted by Charles on December 12, 2002 at 03:12:06:

I did not move in.

Would it be better to “flip” it ASAP before they sell it on the secondary market (they sell 100% of them), or wait ? # of months and then sell it?

Fortunately, it is in an excellent location for resale.

Thanks.