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Refinancing question

My wife and I were going to move into a property we were previously renting out. We notified our renters the we would be moving back in 60 days from the close of our FHA streamline refi because thats what our lender required is moving into the property 60 days from close. We were moving back in because we have had a baby and it is bigger. Well since we have closed on our refi she said she will not move, after agreeing to, and that if I insist she will divorce me. I marked owner occupied on the refi because that was the plan is to live there. I want to make this right where I am legally in the clear. What whould I do? by trentonpickett755 from , California. Aug 18th 2013 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,993 contributions

I'm no lawyer.... But the requirements of the loan you just did will clearly be violated. If discovered, the lender could do noting, call the loan due, or even start foreclosure based on mortgage fraud. You are in a pickle.... You could have, and probably should have done the streamline refinance as a non-owner occupied loan. Under FHA rules, you can not buy an investment property with an FHA loan, but YOU CAN refinance a former primary home with FHA. www.streamline-refinance-mn.com

Aug 18th 2013
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I havent even made the first payment on the refi. It is due 9-1. Is there anyway to reverse the refi back to original loan or do a new refi as non occupied property?

Aug 18th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Yeah, that is not a good situation at all and you agreed to take possesion within 30 days and agreed to maintain that as your Primary Residence for at least a year. WIthout honoring your contractual obligations you are committing Federal Mortgage Fraud which is a serious situation. As far as moving, is that the tenant or your wife? If it's the tenant, just file eviction proceedings. It it's your wife, well then you have another issue to deal with. You can always call your lender and ask them if they will rescind the loan since you haven't made a payment yet. It's worth a try.

Aug 18th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

They will catch you when you change the Insurance from Owner Occupy to Investment and when you request a change of address. Plus since it is a Federally Insured loan it can be a Criminal Offence!!!!!!! Be care full!

Aug 19th 2013
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Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

My advice, contact a real estate lawyer. Also check with your lender to see if they have a solution to your problem.

Aug 19th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

Trenton - I'm gonna say no to this question. But it is worth contacting your original lender about - Ok? thank you - Andrew

Aug 19th 2013
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Ernesto Marez (Ernesto)
#68 ranked lender in Maryland - 137 contributions

can the home your are currently occupying be consdiered a 2nd home, if so you might be able to occupy the first property as a primary home and have your current home as a 2nd home.if you can carry both properties without renting the current primary, it might work for you. for at least a year.however contact your current servicer and ask.

Aug 19th 2013
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Jason Vondrak (jvondrak)
#217 ranked lender in California - 1,741 contributions

If you signed off on the agreement in your mortgage terms and conditions, you must follow through. Otherwise, if it reported that you do not you will have committed mortgage fraud. Try talking to your new lender to see if there is anything you can do about the situation. Good luck!

Aug 19th 2013
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