Home Buying in Las Vegas>Question Details

Lthiba, Home Buyer in Las Vegas, NV

Renting primary residence before 1 year of purchase - penalty ?

Asked by Lthiba, Las Vegas, NV Fri Nov 2, 2012

Hello I hope some of the seasoned RE investor or professional can help me with this question. I had purchased a primary residence home in Las Vegas but I am needing to temporarily relocate for 1 year. Can I rent out mu house even though I had agreed to live in it at least for 1 year in my mortgage paperwork? Thanks for your help.

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Answers

9
I wouldn't talk to any lender before I talk to a real estate lawyer. This is a serious breach of contract, and you could go ahead, move, rent your house out, and worry for 1 year what happens if the bank finds out. That is Not a good situation with serious consequences


David Cooper Investor 702-499-7037
Free Bank-Owned foreclosure List
http://www.lasvegaswinner.org
1 vote Thank Flag Link Fri Nov 2, 2012
The answer to your questions is: consult with an attorney.

Not a person on this site can guarantee you there is no risk or penalties, and every contract is different.

I've heard a bird say: "pay your mortgage on time and don't rattle the cage".
0 votes Thank Flag Link Tue Nov 6, 2012
Hi,

I'm Diane and I have been a Realtor and Investor in Las Vegas for more than 20 years. The answer to almost all questions like this in the current market is "maybe". The circumstance of your relocation and who your loan is with, will determine whether or not you will be allowed to rent it before the first year has past. For instance, if the purchase was a "Homepath" purchase and you used their Fannie Mae Loan, there would have been a document that they required you to sign promising that you would not rent it for a year, unless there were unusual circumstances...such as a job relocation. If that is the case, I would be careful to run the scenario by them, because in that paperwork, you will note that if you do rent it and they catch you, it will cost you $10,000. A Lender might also call the loan, however that is rare. So, what I am saying is, ask your Realtor or the Mortgage Broker to go over the documentation in the Loan and see if there is a clause for extenuating circumstance. Good Luck!

Diane Reinstadtler
Realtor
702-460-1900
0 votes Thank Flag Link Fri Nov 2, 2012
Ask your lender what are the exceptions to their primary residence term of one year in their contract. I would guess that they have come across this before, especially in our current real estate market. If you need help feel free to call or email me.

Respectfully,
John Bonner
Tri-Star Realty, LLC
Tel: 702-582-9255
Email: nvdr1@yahoo.com
0 votes Thank Flag Link Fri Nov 2, 2012
Hi, Lthiba.

The agents below have given you very sound advice. We deal with situations like this all the time. It is true that the lender may call the note, depending on whether or not you have an extenuating circumstance.

That said, if you need any assistance with finding a tenant (provided you don't already have one), you are welcome to give us a call at your convenience.

http://lvpropertysearch.com/las-vegas-investment-homes/las-v…

http://lvpropertysearch.com/landlord-videos

To your success,

LV Property Search
Info@LVPropertySearch.com
(702) 619-6214
http://www.LVPropertySearch.com
0 votes Thank Flag Link Fri Nov 2, 2012
Thank you all for your responses. I will contact the lender and see.
0 votes Thank Flag Link Fri Nov 2, 2012
Life-changing event such as relocation, as in your situation, is something beyond your control.
With proper communication with the lender, there should be some kind of leniency and exemption that it is willing to consider.

Contact the lender and discuss your situation.

Best of Luck
0 votes Thank Flag Link Fri Nov 2, 2012
It depends on how the agreement was written. Often, if you intended to live there and then had an unexpected change of plans, you should be fine. What is the penalty? You've got to read the fine print to find out for sure, but I expect they have the right to "call the note" or demand payment in full. When you can't or won't comply they may have the right to foreclose. Practically speaking, I would be surprised if your lender took any action at all as long as you continue paying your mortgage.
0 votes Thank Flag Link Fri Nov 2, 2012
Hi lthiba,

I suggest that you contact your lender and discuss this matter with them. As far as I know, the lender dose check occupancy depending on the type of loan, and you defiantly want to notify the lender and ask them.

In some circumstances like health, job relocation or etc the lender might conciser exemptions.

I hope that it answer your question. Good luck!

Rena Levy
Broker/Associate
Realty Executives
702-992-7754
cvegashomes@gmail.com
Web Reference: http://www.cvegashomes.com
0 votes Thank Flag Link Fri Nov 2, 2012
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