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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (22693)	8/1/2004 5:02:17 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

No, it's definitely not a recent thing. I've never seen a real estate settlement in which one of the bazillion papers presented by the closing attorney to the buyer from the lender doesn't require the buyer to sign a statement to the effect that he intends to occupy the property, plus that no other loans hidden from the primary lender have been taken out in the transaction. Note the reference to a bazillion papers that the lender presents for the buyer to sign. Maybe you overlooked that paper? Or maybe some other circumstance exists in your state which precludes this. I can only say what I know to be true in my experience. If there is any doubt, get off the internet, where deceptive lenders reign free, and ask a local loan officer from a reputable lending institution whether interest rates and down payments differ for owner-occupant loans vs. investor loans.

To: bentway who wrote (22693)	8/1/2004 5:12:53 PM
From: Elroy Jetson	Respond to of 306849

The document which attests you intend to occupy the home you're buying as your "primary residence" is used to provide a slightly lower rate on the mortgage. If your lender does not offer the discount, you won't be asked to sign. The document itself is largely unenforceable. You may intend to occupy the house when you sign the document, but have "a change of heart" the following day. Banks will occasionally withdraw the owner-occupied discount if the buyers fails to occupy the home, but more often not - especially if the buyer did move in for at least a short period of time. If the owner defaults on the mortgage where they did not occupy, I personally do not know of any lender who has raised any claim relative to non-occupancy. It's all fairly mute at that point and it would only serve to make them look foolish.