Posted by LeasePurchase on July 31, 2006 at 23:09:04:
Yes, all the time. As a Mortgage Banker I run into this all the time, especially when a would-be seller can’t get what they want out of the property when trying to sell it.
They get the idea that they will just rent it out or lease to own and want to refinance it to pull out equity before they do. Or an Investor suggests that they refinance, pull out some cash and let the Investor do a lease option. The banks don’t like that.
Underwriters check the listings for up to 12 months before appoving a loan. Yes, you can always talk to the underwriter but it may not fly unless you agree to occupy the property for at least one more year.
Not all lenders require this so keep shopping.