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No. of Recommendations: 2
I would definitely tell the insurance company but not the bank.

The insurance company can refuse to pay the loss if you dont keep them informed of the correct status.

Even if your loan docs require owner occupancy, even if the bank finds out and even if they care, no bank is going to foreclose on a technical default like this one.

It is NOT bank fraud. It might be fraud if you took out the loan under the guise of owner occupancy, knowing that you did not intend to occupy the dwelling. Converting to a rental after living in it a considerable amount of time is not the same thing.

Even if it was fraud, that is a criminal offense. Do you really think the state's attorney is going to prosecute something like this?
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