Mortgage underwriter didn't like lease back... - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - Page 2 - City-Data Forum

Boompa · 11-11-2009, 08:43 AM

Could it be that the Mortgage requires Owner Occupancy?

SmartMoney · 11-15-2009, 10:22 AM

Rentbacks/leasebacks are common in most market areas. And as a lender, we prefer properties to be occupied (by anyone) as opposed to a 2 month vacancy. Have you seen the damage squatters and delinquents are doing to vacant homes?

It's standard language in Fannie, Freddie, VA and FHA notes for the buyer to agree to occupy within 60 days of closing. There is a reason for this. A rentback does not equal investment property.