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RealEstateAnswer, Lawyer
Category: Real Estate Law
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Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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We purchased a second home in June (with a second home rider

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We purchased a second home in June (with a second home rider attached) and recently made it our primary residence and sold our previous home. I plan to advise the mortgage company of our change of mailing address. Do I need to be concerned about the potential for the mortgage company calling the loan? Circumstances change and we changed our minds after we bought the house and decided to move in permanently.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good morning. When you are asking about the mortgage company calling the loan, do you mean rescinding it or accelerating it, requiring that it be paid in full?

Customer: replied 3 years ago.

Requiring that it be paid in full. I guess I'm worried that they would cry "fraud" given that we recently moved into the second home.

Thank you for the additional information. As long as there is a good faith and legal basis for the sale and relocation, there would not likely be an allegation for any type of fraud or demand that the loan be paid in full. When changing your mailing/billing address with the mortgage company, they likely will not inquire as to the basis for it and will just update it in their system. Of course, you want to review the second home mortgage and rider, to see if anything is required of you, if there is a change in circumstances and if the home is going to be used for a different purpose, then what was originally thought of. As long as there was no intended fraud, you should not worry about this.

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Customer: replied 3 years ago.

Thanks for the answer. Few follow-ups:

1) what might trigger an inquiry by the mortgage company when I submit my change of address? Like you said, it seems like it should be a simple servicing task for them.

2) is it worth asking the mortgage company to remove the second home rider as it's now our primary home? Do I risk opening a can of worms if I do?

3) how would the mortgage company claim fraud if it all comes down to my intent at closing? Who is to say we didn't change our minds the next day? Seems pretty hard to prove on their part

You are correct, that when it comes to any type of fraud, it is going to be hard for them to show and prove this, if they did want to take any actions. These days, the lenders are just happy that the borrower is paying their mortgage on time and the loan is not in default. I think when you call up and tell them you need to prove them with a current address, they will simply change it in their system. As far as removing the rider, you want to re-read it and see what restrictions this places on your and the terms of the mortgage, to see if this would open a can of worms or come back to you and you having to explain everything.
Customer: replied 3 years ago.

OK. Thanks for the insight. Take care.

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