Skip to main content
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?
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.