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Question
I live in Ohio and may be moving from my present location in a few years. I would still be living in Ohio, just in a different part of the state. I will be moving in with a friend who has a house that is paid for. I currently have a first and second mortgage on my house and due to the economy, my mortgage balances are more than my house is valued at; there is no equity in the home. My friend said I should rent out my house but I seem to remember something either on the mortgage papers or maybe it was on my tax returns, that stated I must occupy the house. I can't find my loan papers so I am not sure about that. It is not possible for me to sell my house under the circumstances, is it? I might add this is not an FHA loan and I am current on my payments and in no danger of foreclosure. Thank you.
Typically an owner occupied mortgage loan has a certificate of occupancy or ownership certification of some type, which essentially says that you warrant that you will live in the home for at least a year and if the lender finds out that you are renting the house out and no longer live there, that they can call the note due and payable upon demand. a. - I wouldn't expect any lender would go to those lengths in this type of market and b. - it sounds like the time you move out it will be over 1 year of ownership.
IF it were me, I would rent the home out ASAP as long as there is a positive cash flow which covers your mortgage, taxes, etc.
Of course I am not an attorney and not conversant with your exact loan, so I would strongly recommend that you contact a legal professional locally, to assist you.
My best to you,
- Al
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here
Answers by Expert:
Al Rodenburg
Expertise
Now that we are heading into mid-2011, there does not seem to be an end in sight to the sagging housing market. In addition, we have definitely seen the end of historically low rates - as the government heads rapidly to exiting support for (GSE's) FannieMae and FreddieMac. I wish I could assure you that things will get better soon, but it doesn't seem like we will be poised for upward momentum until late 2012. =============================== 2010 portends a turn around in mortgage lending; there is great pressure to make certain that things stabilize and that loans become more readily available; however, don't expect subprime loans to ever come back; whereas I expect that once things are on a little more concrete foundation, the Alt-A market will come back, albeit not with such aggressive LTV's or documentation "guidelines". There is a crying need to for a non-GSE related lender to step forward in the former Alt-A market to work with investors that have more than 4 financed properties. There has been lip service from the GSE's but if you have more than 4 there does not seem to be any chance of getting reasonable financing.(private hard money lenders are out there, but the rates and closing costs are typically very high, by comparison).
Experience
Over 12 years, originating primary residence and investment propery mortgage loan financing - with an emphasis on making the process as simple, transparent and quick as possible for the consumer.
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After a brief departure from the mortgage business, Al says "It is great to be back in the mortgage industry. I think we will see 2010 become a watershed point in American home financing. I expect 2010 to be the start of a different perception of mortgage loan financing in the United States. We can be proud of the agencies that have come together to form the NMLS (National Mortgage Licensing System), which will be implemented nationally by July, 2010 - and mark the end of deceptive lending practices. The consumer can finally compare apples with apples.(All mortgage loan officers will be required to pass national exams as well as go through thorough background checks)."
BANK OF TEXAS is part of BOK Financial - a regional bank with $24 billion in assets and the LARGEST financial institution in the U.S. that did NOT take TARP funds from the government.
With over 12 years experience as not only a mortgage loan originator, but broker, account executive, CFO and CEO in the industry - Al brings a wealth of experience to your mortgage experience (whether it is for your primary residence or you are looking at financing an investment property).
Prior to his current position with Bank of Texas Mortgage Group, Al was Branch Mgr. for Ascent Home Loans/Houston and Managing Director for Challenge Financial Investors Corp. (St. Petersburg, FL).
Al's expertise also includes business consulting, internet marketing, accounting, training, financial consulting and crisis management.
Organizations
Houston Northwest Chamber of Commerce
Spring-Klein Chamber of Commerce
Houston Northwest Business Networking Group
Publications
Not sure;my stuff is not copyrighted;if you do a search on Google for "Al Rodenburg" and mortgage, you should find over 6,000 listings (some of them should be brief articles I've written or been quoted in)
Education/Credentials
University of Illinois - at Chicago
Florida State University
Principia College
Lake Forest School of Management
Roosevelt University
Awards and Honors
Top 20 originator, 2010 - out of 600 originators in company.
#1 Originator (out of 500 branches nationwide) in January 2007.
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