Occupancy Statement outlines 3 choices:
- Owner Occupied
- Occupied as a Second Home
- Investment Property - Will Not Occupy
Had a (Spanish-speaking) signing yesterday for a married man sole and separate for conventional loan. He told me up front that property was for his mother-in-law. He and his wife own the property we were signing at. Purchase property is about 5-10 minutes away. On the PCOO, per his instruction, we marked "No" on intends to occupy. When we get to the Occupancy Statement, it's already checked as Owner Occupied. Signer had issue with that and asked his wife what's up with that (she's the one who's been involved and negotiated the transaction; due to his work schedule, he hasn't even seen the property). She immediately got on the phone to their agent. Agent said he's aware of MIL situation and so is lender so he'd have to contact lender and call us back. 5 minutes later he calls back and says lender said "Owner Occupied" is correct provided either borrower or someone in his family is occupying. Borrower was assured this is legal and proceeded with signing and we went back to PCOO and changed that to a "Yes."
Your opinion?
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