Selling primary residence after a refinance.
We refinance in January 31st of this year and recently just purchased a home as we have outgrown our condo. We have not moved in yet (seller has 60 day occupancy) and will be listing our condo for sale. Since the condo will be listed for sale before we move in does this violate the 12 month primary residence clause in the deed of trust? It is unlikely that we will be able to sell the condo as values are lower than what we owe on the mortgage. If that is the case we would try and rent it out in Feb or March (after the 12 month's are up). by mikebien1948 from , Michigan. Oct 3rd 2013
John Moran (SimplifyMortgage)
#7 ranked lender in Arizona - 663 contributions
Mike, you are free to sell your home anytime you would like to. Assuming you don't have a prepayment penalty, you can sell without repercussions of any type.You signed the document stating you would not rent it for 12 months, not that you wouldn't sell it.I hope that helps!
Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions
Usually the 12 month clause is only on your Note, not the deed. Usually as long as you don't default on your payments you will never have an issue prior to the 12 months. I've actually never heard of a lender trying to enforce that clause in my 20 years of business. They would have to demonstrate some type of civil damages because of it in the court of law. As long as payments are made there are no damages.
Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions
Don't worry. As others have said, you can sell now, if you have a buyer, and you can rent the property after 12 months, if you do not sell it.
Jason Vondrak (jvondrak)
#220 ranked lender in California - 1,741 contributions
As long as you do not have a prepayment penalty you can sell your home whenever you like.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
It all comes down to intent.. If you refinanced your home as "owner occupied" and then immediately purchased another home and rented the condo, then the lender could have a problem with that.. since pricing on an owner occupied property is lower than investor financing.. and I have heard of lenders sending someone by the property to be sure the borrower actually lives there rather than a renter.. That being said, in your scenario, I would think that 10 months would be sufficient enough to deter any lender from accusing you of loan fraud.. and as long as the payments are made on time, it should not be an issue.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
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