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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Juggling Institutional Lenders Posted by Rick Harmon on October 26, 2003 at 7:33 AM In Reply to: Re: Juggling Institutional Lenders posted by Travis-CA on October 26, 2003 at 1:29 AM : : It looks like I'll be getting my 2nd trustee sale success story soon. The N.C. upset period ended Friday, with no other bidders. (Sometimes there's some last minute legal maneuvering which can undo a sale... but I doubt it will happen in this case. These trustors have already tried the BK gambit, and the house has been abandoned.) : : As it turns out, I just closed on a HELOC for my first purchase on the same day! : : Now-- let's say I change my mind which house I want to move into. (The second one is near the center of town and would be more convenient for future investing/scouting.) If I try to get an owner-occupied HELOC on the second house, do lenders share this data? I.e. will lender #2 look in my credit file and say "you already have an owner-occupied HELOC, we can't issue you another one". : : In my mind, this isn't fraudulent. I did intend to move into house #1. It's just... that opportunity knocked! : Sean, : I don't know if lenders share information, but I have heard that lenders randomly check utility bills on owner occupied loans to make sure they are in fact owner occupied. If dealing with the FHA you can have the FBI knocking at your door I have heard. You have to prove that you intended to occupy the property, ie job transfer out of the area after you closed the loan, I do not know if just finding another house would be enough to convince a lender. I have a list of Fannie Mae's guidelines regarding this somewhere, I will try to find them and post a follow up. : Travis Sean If you occupy the property that you just obtained the first HELOC on currently, I'd be astonished if guidelines require you, the homeowner, to stay put in that property just because it's their policy. Sounds pretty silly when we think of this way, huh? I doubt if the FBI will come knocking at your door, either (something about terrorists, I think). If you're still a bit paranoid, document the fact that you live in the current property fully for now (utility bills, drivers license, vote, etc.) with this address. If you move, document the change of address actions AFTER the move, change you driver's license, etc., all of things good citizens do. By the way, I own a mortgage company so I'm familiar with the stories about FHA random field audits, etc. You are not abusing the system, you merely moved because you subsequently found a home that suits you better...period. As a last thought, when contenplating these things, usually the worst consequences is that you have to repay the loan, not go to jail. Sleep well (did you set your clocks back last night?) Rick Harmon (Lender to dead people) Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : It looks like I'll be getting my 2nd trustee sale success story soon. The N.C. upset period ended Friday, with no other bidders. (Sometimes there's some last minute legal maneuvering which can undo a sale... but I doubt it will happen in this case. These trustors have already tried the BK gambit, and the house has been abandoned.) : : : As it turns out, I just closed on a HELOC for my first purchase on the same day! : : : Now-- let's say I change my mind which house I want to move into. (The second one is near the center of town and would be more convenient for future investing/scouting.) If I try to get an owner-occupied HELOC on the second house, do lenders share this data? I.e. will lender #2 look in my credit file and say "you already have an owner-occupied HELOC, we can't issue you another one". : : : In my mind, this isn't fraudulent. I did intend to move into house #1. It's just... that opportunity knocked! : : Sean, : : I don't know if lenders share information, but I have heard that lenders randomly check utility bills on owner occupied loans to make sure they are in fact owner occupied. If dealing with the FHA you can have the FBI knocking at your door I have heard. You have to prove that you intended to occupy the property, ie job transfer out of the area after you closed the loan, I do not know if just finding another house would be enough to convince a lender. I have a list of Fannie Mae's guidelines regarding this somewhere, I will try to find them and post a follow up. : : Travis : : Sean : If you occupy the property that you just obtained the first HELOC on currently, I'd be astonished if guidelines require you, the homeowner, to stay put in that property just because it's their policy. Sounds pretty silly when we think of this way, huh? I doubt if the FBI will come knocking at your door, either (something about terrorists, I think). : If you're still a bit paranoid, document the fact that you live in the current property fully for now (utility bills, drivers license, vote, etc.) with this address. If you move, document the change of address actions AFTER the move, change you driver's license, etc., all of things good citizens do. : By the way, I own a mortgage company so I'm familiar with the stories about FHA random field audits, etc. You are not abusing the system, you merely moved because you subsequently found a home that suits you better...period. As a last thought, when contenplating these things, usually the worst consequences is that you have to repay the loan, not go to jail. : Sleep well (did you set your clocks back last night?) : Rick Harmon : (Lender to dead people) Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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