Can you rent out a recently refinanced home?

[fg12351]

After looking at new homes for over a year and not finding anything we liked my wife and I refinanced our existing home approximately 2 months ago with the intent of staying in the home as our primary residence.

However we recently found and purchased a new home that we will be moving into.

We would like to hold on to our existing home as the current market would most likely lead to us taking a loss on the home. We have friends who are interested in renting and we would like to rent the home to them.

Reading our conventional mortgage, it states:

Occupancy: Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.

So, what are our options? We would like to inform the lender that the home will no longer be our primary residence. Are there any penalties or fees that we need to be aware of?

We want everything to be legitimate and legal.

Thank you,
FG12351

[foreclosureus1]

You’re right– those most dependable for the economic shambles are getting a “home free” pass, and the rest of us are stuck footing the bills.

[nimmysnv]

I think it is better to look for the possible deals and asking agents that will help you in letting you everything so that accordingly renting can be done.

[sabrinatoss]

You should consult to some experts. They will teach you about your queries. You can also get good advice from them as well as making the right decisions.