LvgonaDream
03-26-2005, 01:08 PM
I read all of the thread on the 12 month "seasoning" rule.
Can anything be done about the 12 month occupancy rule? i.e., borrower agrees to occupy the premises for a period of 12 months. If borrower fails to occupy the premises for 12 consequetive months, then borrower will be deemed in default. Lender may then call the note due in full or adjust the note to a non-owner occupied interest rate.
I doubt it as I've done a search on the internet. One attorney advice forum said "as long as you did not refinance with the intent to then rent" should be able to keep the note. Well we did it with intent. Thoughts were take the $$ from refi, fix this place up, rent it and move up north. The last time I refinanced was in 1997 and did not have to sign such a document. I'm still in shock from it.
Its a done did deal, had to sign papers last night. My only recourse is going to be trying to sell this house (see for sale by owner - Michigan house for sale) way lower than anticipated, pay the 1% prepayment and any seller associated costs.
But any ideas on how I can rent this without being in default would be appreciated.
Dan chiming in here, I'm confused are you going to rent it or sell it? :SM108:
Can anything be done about the 12 month occupancy rule? i.e., borrower agrees to occupy the premises for a period of 12 months. If borrower fails to occupy the premises for 12 consequetive months, then borrower will be deemed in default. Lender may then call the note due in full or adjust the note to a non-owner occupied interest rate.
I doubt it as I've done a search on the internet. One attorney advice forum said "as long as you did not refinance with the intent to then rent" should be able to keep the note. Well we did it with intent. Thoughts were take the $$ from refi, fix this place up, rent it and move up north. The last time I refinanced was in 1997 and did not have to sign such a document. I'm still in shock from it.
Its a done did deal, had to sign papers last night. My only recourse is going to be trying to sell this house (see for sale by owner - Michigan house for sale) way lower than anticipated, pay the 1% prepayment and any seller associated costs.
But any ideas on how I can rent this without being in default would be appreciated.
Dan chiming in here, I'm confused are you going to rent it or sell it? :SM108: