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Is the bank requiring her to live there to be a co-signer, or has this just been assumed? (the bank normally doesn't care if a co-signer lives there, just that they have good credit and are a good guarantor)
How far away is the home from mother's home?
Ok, maybe I am not being clear with my question... Is the bank requiring mother to live in your home or did you simply state that she was going to do so and everyone has proceeded along that line since then?
As I said, the bank normally doesn't care if a co-signer lives in the home and it isn't unusual for a parent to co-sign and not live there..
Ok, then that presents a problem because if you outright deceive them, then if they find this out, you could be charged with felony loan fraud and both you and mother could be in a very difficult situation. Will they investigate and find this out?....no way to know...
So the way to get into the grey area here would be for mother to state that she doesn't want to get into personal specifics, but if something happened in her personal life that resulted in her having to leave her current home, she wants to have an alternate home to live in.
But if she outright says "I will be living there." and doesn't, then you both could be in a very difficult position if the bank discovers this.
But I have dealt with banks and lenders for 15 years and find it unusual that they are mandating that she live in the property to just be a co-signer...
It sounds like she is the primary borrower here and is applying for an owner occupied mortgage in her name....not that she is just a co-signer and you are the primary borrower..