Mortgage question

[LizaLou1]

Dear Soc,

 What is a borrower occupancy rider to a mortgage?

Thanks

LizaLou

[socrateaser]

>Dear Soc,
>
> What is a borrower occupancy rider to a mortgage?

You agree to occupy the property as your principal residence for at least N months (usually 12), or the lender has the right to call the loan or increase the interest rate to cover the risk of lending on what would be a rental property.

In practice, there is really no easy way for the lender to actually discover that you are no longer residing in the property, because you can direct all correspondence to a different address without the lender knowing this. However, if you were ever proved to have intend to do this in advance of signing the waiver, then you would be committing federal banking fraud, because the lender would be lending on your misrepresentation of your true intentions to rent the property.

[LizaLou1]

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