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Question

We have lived in our California home since 1970. We converted the home into a trust in 1998. The mortgage is paid in full. We have decided to purchase a second home and use a portion of it to use as a second residence which will be used as a getaway. The remainder of the house and large workshop will be rented to our son who lost his home in foreclosure. We plan on converting the second home into a trust and our son will be named the beneficiary. We declared on the mortgage application that we will be using the property as a primary residence....any conflicts here??? Looking forward to your reply.

Submitted: 21 days and 4 hours ago.
Category: Finance
Value: $30
Status: CLOSED
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Posted by Milan Vaishnav 20 days and 15 hours ago.

Answer

Dear XXXXXXXX,

 

By going through your question, you deciding to stay at the second home that you have decided to purchase is proper. And thus, I see no conflicts if you declare that that shall be used as your primary residence. You are primarily correct and can safely go ahead.

 

I hope the above helps...

Regards,

20 days and 4 hours ago.

Reply

What is the minimum of stay (getaways per year)at the second home per year to qualify as a primary residence without triggering a conflict ???

 

Thanks in advance, Martin

Posted by Milan Vaishnav 20 days and 4 hours ago.

Answer

Dear XXXXXXXX,

 

As per my knowledge, minimum stay of 7 months is required for the place to be called a primary residence.

 

I hope the above helps...

Regards,

20 days and 4 hours ago.

Reply

Can the seven months be divided into several stays...eg. 7 seperate stays of 31 days each.

Martin

Posted by Milan Vaishnav 20 days and 3 hours ago.

Answer

Dear XXXXXXXX,

 

Yes.. Certainly they can be divided...

 

Warm Regards,

20 days and 3 hours ago.

Reply

One final question...are you sure that the minimum total is 7 months ??? or could it be less???

 

Martin

Posted by Milan Vaishnav 20 days and 3 hours ago.

Answer

Dear XXXXXXXX,

 

Yes.. I am 99% sure. It is required to stay for the "majority" period of year at the place which can be called primary residence. It is liberally interpreted from minimum o f181 Days and up. (^months and one day)

 

Warm Regards,

Posted by Milan Vaishnav 20 days and 3 hours ago.

Answer

Dear Friend,

 

One typing error in last line of my reply... I am highlighting in bold.

 

Yes.. I am 99% sure. It is required to stay for the "majority" period of year at the place which can be called primary residence. It is liberally interpreted from minimum o f181 Days and up. (6 months and one day)

 

Warm Regards,



Edited by Milan Vaishnav on 11/3/2009 at 7:12 PM

20 days and 3 hours ago.

Reply

How does one prove that we stayed at the second home for 181 days....???? is it just an honor system???

Martin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted by Milan Vaishnav 19 days and 17 hours ago.

Answer

Dear XXXXXXXX,

 

The proof of primary residence ----- It depends on all the facts and circumstances of each case, including the good faith of the individual. Usually it is the home in which a person lives most of the time, whether he owns it or rents it. A condominium, cooperative, houseboat or mobile home may be a principal residence.

 

This can be circumstancially proved. i.e. by utility bills, usage of other services at that place, your mailing address for most of the time.. etc.

 

I hope the above helps...

Regards,

Accepted Answer

Dear XXXXXXXX,

 

In addition to what I said above in my replies, I shall come back to your original query. I forgot to sum up my replies.

 

You can, therefore, safely declare on the mortgage application that you shall be using it as your primary residence. You are primarily correct in this and there shall be NO Conflicts.

 

I hope the above helps..

Warm regards,

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Expert: Milan Vaishnav
Pos. Feedback: 99.5 %
Accepts: 
Answered: 11/4/2009

Financial Advisor

Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting

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