Homeowners Policy???? - Posted by JohnBoy


#1

Posted by Rob FL on October 18, 1998 at 10:05:50:

Very doubtful. If you plan on doing this I would not get a loan of this type. I am not a lawyer, but I bet you had to sign something at closing saying this would be your primary residence for at least 1 year. If not, you may be commiting loan fraud, a criminal offense. I am not a lawyer.


#2

Homeowners Policy??? - Posted by JohnBoy

Posted by JohnBoy on October 16, 1998 at 15:03:54:

How do you get around the home owners policy issue without the lender being notified?

I was talking to my agent about this today. He said you have to be occupying the property in order to keep your home owners policy. If you move out of the property and rent it or l/o it you would need to change the policy to a fire/hazard policy. This would require them to send a new policy to the lender that would tip them off you are no longer occupying the property and trigger the “due on sale” clause.

My agent said if I left the homeowners policy on the property and if their was a fire or something they could deny the claim since you were not occupying the property.

How do you get around this and still keep your property insured??


#3

Re: Homeowners Policy??? - Posted by Rob FL

Posted by Rob FL on October 17, 1998 at 17:36:12:

Most FHA and VA loans require that you live in the property for at least 12 months after you get the loan. After that you can rent it out or do what you want. Read the mortgage documents on your property.


#4

Re: Homeowners Policy??? - Posted by Rick Vesole

Posted by Rick Vesole on October 17, 1998 at 01:31:05:

Moving out of a home does not trigger the due on sale clause. Go ahead and switch it to a dwelling policy, just keep your name as the insured and you will have no problem whatsoever.


#5

Re: Homeowners Policy??? - Posted by JohnBoy

Posted by JohnBoy on October 17, 1998 at 22:58:46:

I’m referring to lease optioning the property after only having the home for a month. The mortgage does say you must occupy for at least one year. The due on sale clause includes a lease option. After only owning the home for a month and then lease optioning it would require a different insurance policy which the insurance company would send the lender the new policy nameing them as the additional insured and loss payee. This would obviously raise a flag to the lender being only one month after closing on the loan. So is there a way to get around this without the lender being notified of a different policy or something?