Q: What are the penalties for not occupying a primary residence?
I already rented out my home and now the mortgage company only approved me to not occupy for 6 months but I signed a 12 month lease with a tenant.
The mortgage company wants a copy of my lease but I am afraid that they will accelerate the loan if I show them it’s a 12 month lease.
I know now that I should have waited to sign a lease and explain my situation to the lender before and not after finding a tenant.
Am I allowed to make the tenant move out early?
Is the bank allowed to ask for the whole loan amount due?
The reason I moved out was because of unforeseen medical circumstances. I had surgery, then I needed to take care of my dad after his surgery.
How long will I have to refinance and pay the lender off if they can ask for the loan paid in full?
A:
I can't speak to the mortgage company issue, as I don't handle that area of law. As to whether you can make the Tenant move out early: the simple answer is no.
You can negotiate with the Tenant, but as long as the Tenant is keeping to the terms and conditions of the lease, they have a valid, binding contract for a year. If they are willing to negotiate for an early rescission, they certainly can, but otherwise, you are stuck with them.
Best,
-Leonard
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