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  1. #1
    Join Date
    Apr 2010
    Posts
    1

    Question Removing Occupancy Condition

    My question involves a mortgage in the state of: TX

    I am wondering if it is possible to remove an occupancy restriction on a mortgage, and if so how to go about it, if needed and possible. The mortgage says I need to occupy the home within 60 days of the execution of the security instrument and "shall continue to occupy the residence as Borrower's principal residence for at least one year after the date of occupancy."

    I began occupying the home in 2004 and have been since.
    I signed the mortgage to refinance my home 2 months ago, intending to stay here long term.
    My situation has since changed, and I would like to move out but retain the unit as a rental property.
    I realize this change may not be welcomed by the lender, and would like to know more about potential options before contacting the lender.

    Would I have to completely refinance the property to remove the restriction? Or since I was already living in the unit, would the "date of occupancy" refer to my original date of occupancy in 2004, allowing me to satisfy the one year requirement immediately upon execution?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Removing Occupancy Condition

    You are free to contact the lender to try to renegotiate the terms of the contract. If they do not agree to change the terms, you may refinance. How quickly you would be obligated to refinance under the terms of your contract is something you will determine by reviewing the terms of your contract.

  3. #3
    Join Date
    Mar 2009
    Location
    Michigan
    Posts
    6,808

    Default Re: Removing Occupancy Condition

    If your mortgage has an Escalator Clause, they can increase your interest rate.

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