Notifying lender of intent to let primary home

1 Reply


Complicated situation here and long story. I am in a long term relationship with an abusive person. Last August I secretly was able to pull off the purchase of a condo that would be my escape route. I have kids and multiple rescue pets so rentals were not really an option. So, I found a magnificent lender and explained my situation. They were able to not only get me qualified but walk me through the entire transaction electronically so that not a single piece of correspondence ever came near my current home. I told them at the time that I wanted to move into the home, but I could not guarantee when that would be. I put 40% down. Although I have an 800 credit score, we had to accept a higher rate because my co-signer (my mom) has a score in the lower 600s. So, I have a 60% LTV combined with a bit of a higher than typical rate. We had to write the loan as a owner occupied because it was literally paper thin margins to get me approved. Although I'm not there right now, I am THRILLED. I have my sanctuary. It is a dream come true.

Well, it turns out that I am not ready to move over there. My son has just begun therapy and his school is in the process of testing him for hopefully putting him into a more advanced inclusive classroom (disabilities). To move him to a new district right now would kill his progress. He matters to me a lot more than I matter to me, so I don't want to move him yet. So, I would like to rent out the sanctuary until the time comes that we are ready to make our escape. I have been paying for it so far, and we are keeping up with the costs and even paying additional dollars to principal every month.

I am preparing to contact the lender to tell them what is going on and I am terrified of what will happen. This home will be my sanctuary, and will be my retirement home. It's the only security I have and I don't want to lose it. Prior to the purchase, I asked the broker who helped me to pull off this feat, and he told me that if I put someone in the home prior to expiration of the one year occupancy clause, that I should not put anything in writing. I just want to be honest and disclose to the lender what the situation is, and I fear that they will take the home away from me. How likely is that to happen? I could easily market it today and sell. I can also continue making the payments and just carry the weight of the extra debt load I have with two homes right now. My specific question is just this, honestly, will they take the home away from me? That's what I want to avoid. I couldn't care less about fines, refinancing, etc. I just don't want to lose the home.

Any thoughts?

sound like you have extenuating circumstances for not moving in.. those that get in trouble use these owner occ loans then put them right into a rental pool with no intention of moving in