All of the Covenants in the mortgage are important, including the one regarding possession. You canâ€™t use it as a primary residence or a second home and rent it out. Misrepresenting anything in order to get a mortgage is fraud. Here is what I tell people that ask me how to â€œwork aroundâ€ (code words for commit fraud) the guidelines: The same government that audits lenders is the same one that audits you! What is the source of money for a mortgage today? Fannie, Freddie, FHA? Are they a part of Mexico?
I am surprised that anyone would put the proof in writing of the crime they committed and attest to what they did. Is this serious? The average bank robber only gets about $7,000, how much are you talking about borrowing?
Larry mentioned that he isnâ€™t aware of any lenders watching, they do. Ever see anyone taking pictures of your home? Ever seen a credit inquiry on your credit report and not know why it is there?
Anyway, most of this is speculation; any lender is going to question how you intend to work overseas and live here, not possible. If the lender follows the guidelines they protect the borrower from themselves. They make it difficult to commit mortgage fraud. Finally, check the length of the statute of limitations in the state the property is located, the amount of fine that is possible and the number of years in prison. Not possible? I read an article about a non-default fraud over $100 cash sourcing issue that the guy ended up in prison.
Call it what it is, a rental property until you move back.
Finally, the statement, "Right now is the only time I can get a loan on two properties." sounds a little more serious than at first glance. Sup with that? Good luck,
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Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.