Posted by Ali/IL on 11/10/09 9:04am
Msg #310485

non owner occupied

I did a signing where borrowers had a rtc in package but, are not living at the property. They have rented it out and are living at another one of their properties.
I alerted the tc . Was that the right thing to do or should I have called lender right at the table?Or just minded my own business?

Reply by ReneeK_MI on 11/10/09 9:17am
Msg #310492

There would typically be a variety of documents attesting to the property being their "primary residence" - if you are aware that this is misrepresented, then I guess the question is how do you notarize any of them? The mtg/dot would be one of those documents, too.

Puts you inbetween a rock and a bit of a hard place, but once you know - you can't unknow. If the borrower brought it up, then he wasn't likely intending to fraud the lender and it may possibly have just been an error in the loan doc set-up.

Reply by Ali/IL on 11/10/09 9:49am
Msg #310499

Tc called and they are sending them a new hud.

Reply by Linda_H/FL on 11/10/09 9:58am
Msg #310501

Maybe I'm missing something here but it would seem to me that more than a new HUD is required - really not sure at all where the HUD is related to the owner-occupancy issue other than the interest rate for prepaid interest and homeowner's insurance premium and escrows. IMO there are more legals that are required in the case of a non-owner-occupied property (it just became investment property) and the entire underwriting process is different.

Ah well - what do I know?

Reply by ReneeK_MI on 11/10/09 11:48am
Msg #310520

a new Hud? Ok, I'm stumped. Makes no sense. n/m

Reply by PAW on 11/10/09 12:22pm
Msg #310522

Re: a new Hud? Ok, I'm stumped. And so am I!

What does it say on the Owner's Affidavit and/or the Occupancy and Financial Status Affidavit? What's a new HUD going to accomplish? (rhetorical)

Reply by Cari on 11/11/09 10:03am
Msg #310661

had a similar closing recently......

I recently did a refi, where the owner of the property (property in another state) has a son living in that home. The son couldn't assume the mortgage so the father was did a refi (good thing too, had a previous rate of 6.5% got a 4.2% or something like that)

The father, wife, son & his wife had to sign the DEED, 2nd Home Rider and TIL.

That's it.