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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: Re: question: down payment on my first home Date: 5/15/2013 12:52 PM
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What if i do what the good man above says and ask the Lender to be a little humane and agree in writing to waive the occupancy clause because of my specific circumstance? Do you think that is possible? There has to be at least one lender with human empathy out there.

You would need to get a portfolio lender who isn't selling their loans to Fannie/Freddie. It's not empathy, it's the money that they are concerned about.

how do they know if I'm renting the house or not??

What address do you use for things like having mail delivered, registering your car, registering to vote, your income tax returns, etc. if you are renting the house out? An owner that is using an address that isn't the property address can be flag that it's not owner-occupied.

Do they have an agent checking up on me every once in a while?

Servicers sometimes do occupancy checks.

Or am I also legally obliged to signed some document where I have to tell them what I do with my own property?

The document that you signed with the occupancy clause will also have lots of other clauses in there about what you can and can't do, like you agree to pay taxes, that the lender has first dibs on the rents collected if you do rent it out, and don't pay them their payments; that you have to maintain your property, pay the taxes, etc.

If you are concerned about what you are signing up for when you borrow money to pay for a house, you might want to read some of those documents before you actually do borrow the money. They are generally publicly available documents that you can see on your county clerk's website. Look for documents titled 'Deed of Trust' or 'Mortgage'.

AJ
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