Seeking Advice: Potential Loan Occupancy Breach Due To Sale
Hi BP Community,
My friend is running into what I see as legal issues. The situation is as follows:
She purchased a property as a primary residence and took out a conventional 30 year loan for mortgage on it. There's a clause on the loan for 60 day move in and 1 year occupancy. She proceeded to list the property for sale within the week of closing on the house, and accepted a buyer right away. Now she's running into the issue of what I see as potential mortgage fraud. The buyer also seems to be going through with the purchase and their agreement doesn't have anything stated for the seller to back out. Is there anything she can do for this? All I could recommend was for her to hire an attorney because this might get messy. Maybe she could potentially breach the purchasing contract and pay a fee to the buyer and the buyer's agent?
Thanks for any tips/insights you guys may have!
John