I recently received a loan modification. If I move out of state for a new job, can I convert my home to a rental?

Asked by Bigd, Santa Clara, CA Wed Feb 23, 2011

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5
Pat Chadwell, Agent, Campbell, CA
Wed Feb 23, 2011
Did you get a permanent loan modification or is it a trial one.

If it is permanent you should look over your note or the amendment to the note to see any references to that.

Pat Chadwell, broker
Realty World - Residential Specialists
http://www.patchadwell.com
1 vote
Angela White, Agent, Saratoga, CA
Mon Mar 7, 2011
Read over your provisions in the loan modification first. Then contact a real estate attorney to prevent ramnifications. Banks have 6 years to come back and ask for what was not paid unless you have something else in writing.
0 votes
Terri Vellios, Agent, Campbell, CA
Thu Mar 3, 2011
This is a two part question. The first question has to do with your loan modification. The agents below answered part of that question. The second part would be if you were to default on the loan modification and you have changed the ownership from owner to rental then what default measures could the bank persue? Such as a deficiency judgment. You will need to understand your loan documents and I recommend you review them with a real estate attorney.

The second part as a home owner (providing there are not association restrictions) can you rent your home? You are entitled to (within the law) do as you wish with your home. And if you need to turn it into a rental you can do that.

The banks biggest concern is their investment, they want the payments made fully and on time, and they want the home to be maintained. If you do that you should not have much concern.
Web Reference:  http://terrivellios.com
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Sat Feb 26, 2011
Hello Bigd,

It usually depends on the contract you have with the bank. However, I have seen many people renting out properties they have received loan modifications on. I'm not sure if this settles in well with the banks and what the recourse may be but I have seen none so far in the past 5 years.

Good luck
0 votes
Tony McMahon, Agent, WHITE PLAINS, MD
Wed Feb 23, 2011
You should consult with your lender and or review your new loan docs to see if it is addressed in the contract.
0 votes
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