A woman bought a home through private sale with a 90% LTV non-conforming loan. The house had tenants still living in the house from the previous owner. She is honoring the existing lease agreement between the previous owner and tenants and collecting rent. She bought the house as owner occupied assuming she would move into the house when the tenants moved out in a couple months. However, she signed paperwork at closing saying she had to occupy the house within 60 days however the lease is not up for 4 months. Can she notify the lender of this and let them know that is in fact a non-owner occupied property ??? She is not looking to get into trouble and really didnt know the ramifications of saying it was an owner occupied property.
her easy pathway might be to offer some money to the current tenants to move early. I bet $1000 would get the trick done.
notifying the bank of the situation will open up a big can of worms. No personal experience in this area, but they will not be amused in the least bit.
Can she notify the lender of this and let them know that is in fact a non-owner occupied property
I applaud her for wanting to be honest. However, Contacting the lender at this point would not be a wise thing to do. As long as she is plannng on moving in when they move out she should be fine.