Can i get in trouble with mortgage?

7 Replies

Hi yes i was wondering could i get in trouble if i were to take out a mortgage loan and claim that i was living in this home as a primary resident. But in reality renting it out and not telling my mortgage company about it? even so if i was doing this how would they know im actually renting it out and not living there? it is not like they are going to my home everyday knocking on my front door?

common question

yes it's fraudulent. maybe they will find out, maybe they won't. The overwhelming majority of profit produced on the planet is done legitimately, you don't need to break any rules to get ahead.

In the army they would say "do the hard right, over the easy wrong"

The stip is that you live in the house for a year, forgiving any unintended scenarios where you would have to move out early, that would be fine, but you're supposed to intend to move in. I suggest you follow the rules.

Yes.  It's mortgage fraud if you claim that you intend to occupy the home as your primary residence but, in reality, have no intention of doing so.  Don't do it.

@Frankie Betancourt The mortgage company would be notified if they mailed the  monthly statement and there was a change of address (USPS would notify them - "address service requested").  Or the insurance company might notify them.

That said, I believe the requirement is generally one year unless it's a job relocation.  So after a year you're free to move out and rent the place.

Karma, Frankie. I hope no one here is actually going to give you advice on how to commit mortgage fraud.

@Frankie Betancourt

As soon as you have a change of address for your taxes or your insurance or your mortgage payment they’ll find out. It’s public record when owners don’t occupy they’re residence.

They might not care until you miss a payment and they call the note due...

Well would it still be considered "FRAUD" if i make this home my Primary Adress Put all the bills in my name pay monthly statement on time and never have a change of address?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.