Financing in 48316>Question Details

Jim.greener, Home Buyer in Utica, MI

Separating after refinance...Can I move out ?

Asked by Jim.greener, Utica, MI Tue Oct 9, 2012

We (me and my wife) recently refinanced our condo in Jul 2011.
Marriage is not working out and I want to move out....So this won't be my primary residence (for 12 months as stated in the loan documents). My wife will still be living there....I want to buy a new home under my name. Can I do it or am I stuck too. I have a house in mind and can close by mid-Jan and since I have 60 days to occupy, I can get there by mid March which still is 3 months prior to Jul 2013 (1 yr)

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If it were me, I would call up and ask to speak with a supervisor. I'd sure to take down the supervisor's name & write down exactly what they say. Then if it were to ever become an issue in the future I would say "So n' so advised me of ______________ on such n' such date".
0 votes Thank Flag Link Mon Oct 15, 2012
Everytime I call my current lender, I get different answer. Their customer reps say that they don't even understand why would I need any waiver etc. since I am not going to rent it out, Someone else from the lender told me that as long as one borrower remains in the house for 1 year , you are ok...
Their research department says as long as the mailing address stays the same for 1 year they don't care (which I found interesting).

So, I am not getting straight answer from anyone...So much for all these experts.
0 votes Thank Flag Link Mon Oct 15, 2012
Didn't you talk with your lender?
0 votes Thank Flag Link Sun Oct 14, 2012
After reading this and other answers I am still not sure if I am ok to move forward. In other words can/should I be applying for a home mortgage as the primary home for just myself while my wife ( who is one of the borrowers on the current mortgage) can live in the current home and we still won't violate the primary residence-for -one-year clause
0 votes Thank Flag Link Sat Oct 13, 2012
Flagstar is your mortgage servicer, they are the ones you make your payment to. Flagstar may also own your mortgage, it is sometimes tough or impossible to tell. However since you have an FHA loan, HUD is the one who will have to pay an insurance claim out if it ever defaulted. So the answer to your question is it would cause problems with both Flagstar & HUD. If you defaulted on your mortgage terms they would send you something in writing. Default doesn't only mean that payments weren't being made, it could also mean another part of the mortgage agreement wasn't adhered to (such as if you both moved out of the property prior to 12 months).
0 votes Thank Flag Link Thu Oct 11, 2012
After reading this and other answers I am still not sure if I am ok to move forward. In other words can/should I be applying for a home mortgage as the primary home for just myself while my wife ( who is one of the borrowers on the current mortgage) can live in the current home and we still won't violate the primary residence-for -one-year clause
Flag Sat Oct 13, 2012
I called our bank that holds our mortgage (FlagStar) - and their research department called me back today and said that as long as the mailing address remains this house for at least one borrower they don't have any problems,

This brings me to another question that I have been wanting to ask - Who exactly will cause problems for me if I bought a home somewhere else as the primary home while my wife would stay in our current home. Is it the current bank or will be Fannie Mae or will be the new lender? Not sure.
And when will I know they have a problem?
0 votes Thank Flag Link Thu Oct 11, 2012
That's what I mentioned before, glad you were able to find it.
0 votes Thank Flag Link Thu Oct 11, 2012
Well, I found following in FHA website ....
"
At least one borrower must occupy the property and sign the Note and security instrument for the property to be considered owner-occupied "

As per this am I not ok as long my wife ( one of the borrowers)occupies the property for 1 year
0 votes Thank Flag Link Thu Oct 11, 2012
Jim,
If all they cared about was their payment then why did they have you sign saying you would live there for at least 12 months. Like Shane stated. You need to speak with your mortgage person to find out exactly. They may excuse it.
0 votes Thank Flag Link Wed Oct 10, 2012
Well, I am hoping that since I am moving out in Mar 2013, which is just 3 months before the 1 year anniversary,and since my wife(one of the borrowers) will still be occupying the house as the primary residence, they should have no issues...All they care about is their payment and they will keep getting those payments...
Am I missing something?
0 votes Thank Flag Link Wed Oct 10, 2012
There are people who would just take the easy way out and just not say anything and hope their mortgage lender never finds out, but I commend you for being honest and upfront. Your current lender/mortgage servicer would be the primary party who would be concerned if you moved out of your home before you've lived there for 12 months. Situations where a spouse/borrower on the loan needs to leave the home aren't uncommon (job relocation, activated for military duty, domestic abuse, divorce), and common sense says it would be proper to discuss with them what options are available to you. You may be asked to provide documentation, such as the court signed divorce decree.

Do your documents say that "borrowers" or just "a borrower" needs to live in the home for 12 months? I am not sure what type of loan you refinanced into, but for example FHA loans just require that "a" borrower (not all borrowers) must occupy the property within 60 days of signing documents & continued occupancy for 1 year. If your document had similar verbiage, and you are both on the loan, then it could be possible she can remain in the property and not violate that clause. If you were the only one on the mortgage, and she is just on title, then you may have a legal challenge if you move out of the home prior to 12 months even in the situation of divorce, since you are the only person on the loan. I have also seen owner occupancy affidavits refer to "all borrowers", so if it says "[all] borrowers" are to remain in the home for 12 months, then I would be looking to get permission from my mortgage lender.

Shane Milne | Lending in all 50 states | NMLS #81195
0 votes Thank Flag Link Wed Oct 10, 2012
Ask your attorney. They can best advise you on legal matters.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Tue Oct 9, 2012
Sorry Yes it was Jul 2012
0 votes Thank Flag Link Tue Oct 9, 2012
Jim,,

July 2011 till july 2013 is 2 years. Did you mean you refinanced in july of 2012? You should speak to a loan officer where you refinanced & ask them.
0 votes Thank Flag Link Tue Oct 9, 2012
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