No. of Recommendations: 3
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?


Sometimes the advice given on these boards never ceases to amaze me.

If you are refinancing, you will have to specify whether the property is purposed to be an owner occupied dwelling or an investment property. Banks want more for the risk of investment properties. Moreover, you must sign a form to that effect. If for one's personal residence you'll usually you'll be expected to live in that property for a minimum of one year. If you are found to have lied, you can be charged with fraud. You can have the bank demand immediate payoff. Can you really guarantee this wouldn't happen?

"Sure, it's not my money and butt on the line. Yeah, baby, let's roll the dice and see how you make out...oops! You got forclosed on and & prosecuted for federal fraud? Bummer. You should't have listend to my ingnorant, throw caution to the wind advice on a public discussion board. See you at the welfare office in 5-10."

People like you should stay on the yahoo boards. People are accustomed to getting worthless advice there. Stay away from here, please!

TicoHombre
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