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Can I rent my house? California

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  • Can I rent my house? California

    I bought a house 2 years ago believing that I would be moving right into it. I was then offered a promotion at my old job in my old state so I have delayed moving. Now that I'm making more money I'd like to stay put and save and not move in yet. Now I'd like to rent it for a year or two until I can move in to the new house.

    It specifically says in my mortgage that I'm not allowed to rent. But my circumstances have changed 2 years later.

    How can I legally rent my home without being in trouble with my bank?

    Thank you for any information.

  • #2
    Pay off the mortgage in full. Then the bank will have nothing to say about it.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Thanks but...

      Thanks, but I don't have a spare 700,000 dollars at the moment. Hence my desire to rent.

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      • #4
        I don't know what else to tell you. The mortgage says very clearly, according to you, that you are not allowed to rent the house. What else are you looking for?
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          Most lenders don't have a problem with renting the unit a few years after you got the loan. It's probably not an issue, but would have been had you claimed owner occupied on the loan papers then tried to rent it right away. Your bank isn't going to give you explicit permission to rent, but are unlikely to even know that you've rented it out unless you let them know. Do they mail your statements etc. to that address or somewhere else? If you have the mail go to a P.O. box, then they're not going to know that you're renting it out.

          Without actually reading the mortgage docs, no one can give you legal advice. Likely it says that you are the owner/occupant. That was your intent when you purchased, right? (Occupancy fraud is one of the highest types of fraud). You'll have to decide what to do for yourself.
          I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.

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          • #6
            Have you talked to lender about mending that section of agreement?
            http://www.parentnook.com/forum/

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            • #7
              LOL - Panther - that's called a refi. Lenders don't 'amend' mortgages.

              Really, there are two issues - mortgage fraud (stating you intend to owner occupy when you know you're going to rent it), doesn't seem relevant here. And, what the contract says - which is most important. Unless there is a due on 'rental' clause, the OP needs to have an attorney interpret the clause the OP is referring to AND to determine what the bank's remedy is in case of breach. Or, the OP can rent the place out and play 'wait and see'.

              I'm a real estate professional, and even FHA will let you purchase and owner occupy for a few years then rent, and purchase another FHA. So, it's not likely a problem, but if the OP wants some legal certainty they should take the mortgage to an attorney for their E&O, oops, their advice. ;-)
              I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.

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              • #8
                Just a matter of wording
                http://www.parentnook.com/forum/

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                • #9
                  Thanks, all, for your help. I'm especially encouraged by your advice, Alice.

                  I'm going to give the contract to a lawyer friend and see what he says.

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                  • #10
                    Good luck, Jason. What you're really interested in is NOT whether you can rent, but what they can do to you if they find out you're renting it out. An attorney should be able to help you with that.
                    I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.

                    Comment


                    • #11
                      Originally posted by Alice Dodd View Post
                      Good luck, Jason. What you're really interested in is NOT whether you can rent, but what they can do to you if they find out you're renting it out. An attorney should be able to help you with that.
                      LOL, very astute of you. Yes, you are right.

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