I cannot live in my condo anymore because i got laid off. I am looking for a tenant.

Asked by Thomas Q., Miami Beach, FL Fri May 15, 2009

Do i have to inform the lender if i don't live there anymore? My mortgage payments will be late
but i will eventually pay. Do i have to tell the prop tax people that i am turning the condo into
an investment for now to be able to pay up?

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Mott Marvin Kornicki’s answer
Mott Marvin…, Agent, Sunny Isles Beach, FL
Wed Mar 19, 2014

The answer is yes and no.

Your situation may be deemed temporary and that may determine your obligations to the Lender and Tax Authority.

Homestead Exemption and Primary Residence qualification are the gist of the matter.
0 votes
Irina Karan, Agent, Aventura, FL
Mon Apr 28, 2014
Hello Thomas,

Sorry about the job loss.

There are several options:
1) Sell this condo
2) Rent it out - if it is allowed by your condo association - read the condo documents and rules and regulations, to see if renting is allowed and for how long.
Some condo associations don't allow rentals at all. Others - you have to wait a year or two of ownership. Some say it's only yearly lease, while others allow 6 months.
3) If to tell the lender: Once you stop paying, they will be calling you. You can tell them that you lost a job and are looking for a job. Then, you don't have to accept their calls until you are able to pay again.
You have to read your Note (the document you signed when you bought your condo). In it, it could say that once you rent the place out the rate could go up 0.5%. So, in real world most people don't tell...this is what we see, which does not make it right.
4) Taxes - if you have a homestead, you can loose it once you move out from this condo, by telling the tax authorities that you are renting your place out. In real worlds, if the change is temporary, homeowners do not inform the tax authorities. Again, this does not make it right.

Hope this was helpful and best of luck!

Irina Karan
Beachfront Realty, Inc.
0 votes
Betsy Morales, Agent, Miami, FL
Wed Jun 19, 2013

I am sorry to hear about your situation. I hope you realize that you are not alone, many people are in the same situation. I respect the fact that you are being responsible and renting the unit so that you can keep paying the mortgage. You can talk to your lender to discuss your situation and see if you can create a repayment plan once your payments fall behind. This will avoid the lender hiring an attorney and/or filing for foreclosure. They tend to do this after you are behind 3 months or more. Communication is key in these situations. With regard to your property taxes, you are obligated to report a change if the home is no longer your homestead property. I hope this helps and good luck.

Thank you,

Betsy Morales, LCAM
CIM Properties & Investments, LLC
Providing you excellent Property Management Services.
Email: Betsy@cimproperty.com
Phone: 786-280-5014
0 votes
Louise Warri…, , Lake Mary, FL
Sat May 16, 2009
Hi Thomas -- Very sorry to hear of your situation. You have a lot of company.

I don't think your mortgage company would care whether you're renting it out (unless you have one of the special downpayment assistance loans that came with a lot of strings attached to it). You should be able to figure this out by looking at the conditions on your note (these papers were given to you when you closed on the condo). Of course you should tell them of your change of address so that you'll get any notices that they send out.

Your condo association, though, may have restrictions on whether you can rent it, how many units (%) in the building that are rental properties, etc. Look over your condo docs for this information.

If you're going to be late in your payments, but feel you can catch them up, I would suggest you immediately contact your mortgage company and tell them your circumstance. They may be willing to work with you to pay the current payment and a bit of a past payment each month (and not put you into the foreclosure track). This really is a must if you're going to be late with any payments. So many folks don't want to face it and try to pretend it isn't happening--this only gets them into more serious trouble and makes it harder to find a solution.

In terms of telling the county taxing authority, I don't think you have to do that either. We pay taxes in arrears here in Florida, so this year's taxes won't be due until November (the earliest date). Again, if you're not making your payments on time, and your payment includes escrows for taxes, you really need to talk with the lender and let them know your plans.

You can try to sell your property, but in most cases nowadays, this means selling short, which isn't the easiest thing to do. You can check out this option with your mortgage company when you call them to work out a solution.

Hope this helps. Good luck.

Louise Warring, e-PRO, CSP, CNS
Certified Short Sale Professional
Coldwell Banker Residential Real Estate
0 votes
NonRealtor, , 23456
Fri May 15, 2009
Hi Thomas,
Sorry to hear about the job situation. It may be better to just sell it, if possible. Good Luck
0 votes
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