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I have a similar question. I have lived in my house for 5 years. Recently, we decided we want to move to be located closer to my work since I commute w two small children 40 mins both ways. The value of the house has plummeted, so I am upside down. My husband applied for a loan, we found a house, he put an offer on it, and it was accepted. In the occupancy clause on my loan, it says 12 months, do I need to & should I notify my lender of my new intentions to rent? What are possible consequences either way? by Alysia1013297 from , California. Jan 10th 2015 Reply


Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

first ,, who is your lender ? linda at yourloanpartnerforlife@live.com and what type of loan is the current one ?

Jan 10th 2015
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The loan is FHA. My lender is US Bank. My home is in Ohio... I'm not sure why it says I'm from CA.Thanks bmcfed.

Jan 11th 2015
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

how much do you owe ???

Jan 11th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

Well if you are moving you will just need to give them your updated mailing address so they send your statements to the correct address. There are no issues since you have occupied the home over 12 months.

Jan 11th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

After living in your home for 5 years, and then turning it into a rental, you do not need to notify the lender.. typically, most loans have an occupancy clause that state you need to move into the property within 30 to 90 days after closing.. and you have to live in the property for 12 months before converting it into a rental.. it looks like you have already met that guideline. the one thing you need to be cautious of though is the lenders attitude regarding the exiting property.. a strategy used in the past to liquidate underwater properties is called the "buy and bail".. meaning you purchase a new home, and once you close, you let the other property get foreclosed. Lenders will be very suspicious when looking to issue you a new loan knowing your underwater on the exiting property, so don't be offended if they start questioning you on your intentions.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 12th 2015
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