Quote:
Originally Posted by chet everett
This is clear cut case of fraud. The intent of about half a dozen documents that you sign when you borrow money to buy a house is to reassure the lender and the secondary market that you are not a landlord who has about a 30x greater default rate than run-of-the-mill owner/occupants...
Worst case the lender calls your loan and asks a Federal prosecutor to charge you with fraud. (though honestly the odds of that are remote...)
More likely the lender may find out that you are not in fact living in the place, force you to refinance at non-owner occupied rates (which are about 2.00 percentage points higher) AND require you to come up with a MUCH more substantial downpayment.
Insurancce could get messed up / denied.
Not really worth the risk if you have any other options...
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It might be a "clear cut" case of fraud, but it doesn't seem to be prosecuted at all in my area.
The former owner of my home signed three "owner occupied" fannie-mae mortgages with the
same lender on the
same day, at the
same title office. He ended up losing
two of them to foreclosure, no doubt he got a "loan mod" on the third - I haven't read his name in the paper as of yet for loan fraud, but we can hope, right?